Value Co-Creation in Industrial Buyer-Seller Partnerships ... - Doria

the first cooperation agreement, which marked the beginning of the partnership, was signedin the spring of 2000. Due to technicalities the agreement applied retroactively from 1999.” The idea is that all new ships that come out with our engines automatically fall intothis agreement, it is an agreement that encompasses all their vessels, which is differentfrom former agreements when every ship had its own agreement, a service agreementfor delivery of parts and labor. Now we try to avoid price discussions altogether. Itwon’t happen, but in the long run it is maybe possible. ” (Interview: Seller 1)The basic components of the cooperation agreement concerning obligations from bothparties can be summarized as follows:From the point of view of the Seller:• Provide the Buyer preferred customer status (organization tailored for customer)• Provide one designated person for the Buyer for technical matters• Offer discounts on spare parts• Provide the Buyer with pro-active technical information• Offer Condition Based Maintenance ProgramFrom the point of view of the Buyer:• Buy spare parts from the Seller• Pay a knowledge fee in order to get technical information• Act as test lab for the Seller• Follow the Seller’ s recommendationsThe rationale for a partnership from the Buyer’ s point of view is that this is the mosteconomically efficient way of working in the long run. A pro-active approach is believed toadd to the reliability of the fleet and to the comfort of “ a good night’s sleep” . It is believedthat it is more economical to act pro-actively and avoid breakdowns or damage, than to bereactive when the damage occurs. Mr BR9 took over a situation with several breakdownsfrom his predecessor; now his aim is to have a reliable fleet and he needs the Seller’ s help toachieve this.112“ … cost of conformance is low, that you see to it that your engines are doing ok. Youservice them when they should be serviced; if you suspect that a bolt is going to breakyou change it. It will cost you some money but you change it. It can also be aboutbigger things that you have to change. This is what we do constantly at the Buyer, if