Manufacturing cooperation is an increasingly common model of cooperation between enterprises that enables benefits for both parties. Joint effort on a project, as well as experience and resource exchange make cooperation a key to market success. This article discusses the essence of manufacturing cooperation, in addition to its advantages and challenges.
Key cooperation aspects
Cooperation between enterprises may take various forms; however, three aspects are crucial when it comes to manufacturing cooperation. Firstly, resource sharing – material, human or intellectual – enables to cut costs and increase the effectiveness of manufacturing processes. Secondly, joint development of technological and organization innovations contributes to increased competitiveness of both companies. Thirdly, cooperation enables better utilization of the market potential through joint marketing and sales activities.
Advantages of manufacturing cooperation
Manufacturing cooperation offered by Noex, a manufacturer of plastic products entails numerous benefits for its parties. Above all, it enables reducing manufacturing costs through joint utilization of resources and competences. This allows companies to focus on their key competences, while simultaneously benefiting partner’s experience. Furthermore, cooperation fosters innovation – joint development of new technologies or organizational solutions may expedite their market introduction and roll-out. Moreover, cooperation enables gaining new clients and increasing market share owing to joint marketing and sales activities.
Challenges associated with manufacturing cooperation
Despite its numerous advantages, manufacturing cooperation is also associated with certain challenges. One of those is the need to build trust between partners – the absence of mutual trust hinders effective cooperation. It is also important to work out appropriate activity coordination mechanisms, and to clearly define cooperation objectives and principles. Yet another challenge is managing cultural diversity that may impact the manner of communication and decision making. Legal aspects are also worth bearing in mind – cooperation agreements should be clearly worded to avoid potential conflicts.