Supply Chain Management

The auto industry has lost $50bn since 2005 because of the poor supplier relationships - reflecting on poor, short sighted and misguided supplier management. Proctor & Gamble on the other hand are looking to generate 50% of their new product innovation from their suppliers.
How, with so many similar and compelling examples of the value of value network management, has US (and indeed global) industry imploded? Simple really - by screwing down prices paid to suppliers, extending payment terms and resourcing away from competent suppliers, there is such a lack of awareness that you need to understand your customers and drive value from the source of your supply chain onwards.