5. Encourage suppliers to innovate and develop competitive advantages

In this new Make or Buy process, you can make your suppliers evolve.

• Ask them about functional specifications, not closed solutions.

• Ask them about their capacity for innovation, and add it as a criterion for evaluating suppliers.

• Involve them in your own development projects (the relationship can go as far as co-engineering).

In this way, you can develop your own know-how and, in some cases, join forces with your suppliers.