In this article, the authors present a tested process to transform traditional customer/supplier relationships into superior collaborative ones. It starts by managing the drivers, not the outcomes, of the business relationship. Instead of the classic procurement approach of cost lowering and combative negotiation, companies would do better to identify a few key partners -their so-called Pairs of Aces- and then focus on managing the network of interactions between them, addressing perception problems and fulfilling expectations, all designed to make themselves more attractive partners to do business with. Investing time in this process saves, and makes, money in the end. Smart companies have learned that by collaborating this way, they can outperform the competition and unleash the Power of Two.

Tools and Frameworks:
> Depicts the evolution of a customer/supplier relationship over time, showing that sales are a consequence of, not the driver of, success.
> A useful exercise to map your network of contacts, so you can strengthen weaker ties.
> A structured process for improving relationships with your five key suppliers/customers, i.e., your winning Pairs of Aces.

Examples Cited:
ABB, Bombardier, Honda, Nokia, Philips, Lidl and Toyota

Research Basis:
Synthesizes several years of research, which the authors have tested with thousands of executives at IMD and as consultants to firms implementing their concepts.

About the Authors:
The late Thomas Vollmann, professor of manufacturing management at IMD, was considered a global authority on manufacturing control systems.

Carlos Cordón is a professor of process management at IMD. He has won several prizes for his cases and articles on supply chain management, outsourcing and process management.