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United Technologies Corporation: Supplier Development Initiative

This case describes Pratt & Whitney's attempt to consolidate its vendor base and to work more closely with this reduced set of suppliers. Specifically, the case addresses the problems inherent in changing mind-sets from the more traditional view of one's suppliers to one where attempts are made to develop the skills of key suppliers so the supply chain can work more efficiently and effectively. The case illustrates the different tensions facing a buyer that recognizes the importance of closer, more collaborative ties with its key suppliers.