March 14, 2024

Breaking Barriers: Empowering OEMs for Effective Collaboration with Suppliers

The challenging job of Original Equipment Manufacturers (OEMs) in the fast-paced manufacturing industry is cultivating genuine relationships with their suppliers.


Breaking Barriers: Empowering OEMs for Effective Collaboration with Suppliers

The challenging job of Original Equipment Manufacturers (OEMs) in the fast-paced manufacturing industry is cultivating genuine relationships with their suppliers. The key to efficiency and innovation lies in these collaborations, which are not always easy to forge.  

This blog will examine the challenges, successes, and methods that result in harmonious relationships, which are essential to effective supplier collaboration. We will highlight solutions like No Code Digital Twins that facilitate smoother collaboration.

Barriers to Collaboration and how OEM's can Successfully Navigate

OEMs face multiple barriers in the process of long-term supplier collaboration, this includes:

1. Prioritization of Simpler Initiatives

Problem: Time-consuming and administratively demanding projects may gain priority over those that benefit. This causes businesses to put more emphasis on easier and quicker projects, regardless of their value.

Solution: The best way for original equipment manufacturers (OEMs) to find long-term beneficial collaboration opportunities is to perform comprehensive evaluations. Initiatives that are highly beneficial and align with strategic goals should be prioritized, even if they demand more time and money at the outset.  

2. Resistance to Mindset Change

Problem: Collaboration requires a shift in mindsets among buyers and suppliers. Both parties may be accustomed to transactional or adversarial relationships, making it challenging to embrace a collaborative approach.

Solution: Original equipment manufacturers should focus on establishing reliable relationships with their suppliers through honest and open dialogue based on mutual respect. Offering training and assistance to vendors and internal teams can foster a more collaborative attitude.  

3. Intensive Cross-Functional Involvement

Problem: Most collaborative efforts demand intensive, cross-functional involvement from buyers and suppliers. This requirement deviates from the usual working methods at many companies, posing a significant challenge.

Solution: OEMs should establish dedicated cross-functional teams or committees to oversee collaboration projects. These teams should have representatives from various departments. Clear roles, responsibilities, and communication channels should be defined to ensure effective coordination and collaboration across functions.

4. Difficulty in Quantifying Value

Problem: Measuring the exact value created through collaboration might be difficult. This occurs when businesses try to strengthen their supply chains and use traditional procurement tactics simultaneously.

Solution: To determine the effectiveness of their partnership efforts, original equipment manufacturers should establish measurement frameworks and KPIs. Cost savings and other areas of concentration should be metrics that align with strategic objectives.

5. Lack of Skill and Structures

Problem: Developing efficient supplier-collaboration programs can be challenging for companies due to a lack of expertise and systems. They can also have trouble finding enough qualified employees to manage these programs.

Solution: The solution is that original equipment manufacturers should put money into training programs so their employees can manage supplier collaboration programs and create them. Project management, communication, negotiation, and change management are some of the topics that should be covered in training.

6. Need for Buy-In and Long-Term Commitment

Problem: The key to fruitful supplier partnership goes beyond just putting frameworks and processes in place. Executives and decision-makers at every level of the company must be on board with it and willing to commit to it for the long haul.

Solution: As a solution, top executives at OEMs should be the vanguard of collaboration efforts, showing their dedication through regular updates, fair distribution of resources, and participation in collaborative events.

The No Code Digital Twin solution

1. Ease of Use

With No Code Digital Twins, launching a collaborative effort is a breeze. Anyone without coding experience can easily utilize their user-friendly interface and no-code feature to build and administer digital twins. Given the ease of use, many original equipment manufacturers (OEMs) and suppliers have begun to use it, which is great for diversity and teamwork.

2. Rapid Implementation

Quick deployment and faster benefit realization are made possible using No Code Digital Twins, which streamline the implementation process. In contrast to more conventional software solutions, which require substantial development and customization, these platforms provide supply chain-specific pre-built templates and modules. By shortening the time, it takes to execute changes, original equipment manufacturers (OEMs) may quickly respond to problems with collaboration and seize opportunities.

3. Flexibility and Customization

Original equipment manufacturers (OEMs) can modify solutions to meet the needs of their supply chain with the help of No Code Digital Twins. These platforms, with their flexible features and modular architecture, are designed to respond to changing market conditions and evolving business needs. Visualization tools, data models, and procedures can be customized to maximize supplier participation and achieve OEM (Original Equipment Manufacturers) cooperation goals.

4. Enhanced Visibility and Control

Better insight and management of operations are made possible with No Code Digital Twins by building a digital twin of the supply chain. Every step of the supply chain ecosystem, from sourcing and manufacturing to warehousing and delivery, is visible to original equipment manufacturers and their suppliers in real-time. Thanks to this all-encompassing view, stakeholders can work together more effectively, which allows for proactive decision-making, risk mitigation, and performance optimization.

5. Scalability

With No Code Digital Twins, OEMs and suppliers are aware that their needs will be met as they expand. These systems are specifically designed to easily adapt to changing business needs and match with technological improvements. By utilizing No Code Digital Twins, collaborative activities can be future-proofed and remain viable and adaptable, whether operations are expanded, new suppliers are integrated, or innovative technologies are adopted.

Use Cases Enabled by Digital Twin Technology

Purchase Order (PO) Collaboration:

Collaborating on purchase orders to assess feasibility and identify alternative plans and associated workflows.


Sharing forecasts and detecting exceptions, enabling collaborative efforts between OEMs and suppliers to meet forecasted levels effectively.

Capacity Management:

Sharing capacity information at the value stream level, identifying over or under-capacity areas, and managing associated risks  collaboratively.

Inventory Management:

Identifying and collaborating on inventory levels at both OEM and supplier ends, optimizing inventory levels, and addressing issues of  excess or low inventory promptly.

Ideas Management:

Managing ideas, business cases, and prioritization jointly between OEMs and suppliers to foster a mutually beneficial relationship and sustain innovation.

Quality Management:

Utilizing Digital Twins to monitor and analyze quality metrics  throughout the production process, enabling proactive identification and resolution of quality issues. Collaborating on quality improvement initiatives ensures that both OEMs and suppliers consistently deliver high-quality products.

Total Cost of Ownership (TCO) Analysis:

Leveraging Digital Twins to analyze the total cost of ownership, including material costs, landed costs, non-conformance, variability, cost of risk and cost of sustainability allows OEMs and suppliers to identify opportunities for cost reduction and optimization, leading to improved profitability and competitiveness.

Real-time Visibility:

Providing real-time visibility into potential line shortages, enabling proactive collaboration with suppliers to mitigate issues before they occur.

Real-time Performance Management:

Offering transparent performance metrics and effective chargebacks, providing accountability and continuous improvement across the supply chain.

Carbon Emissions Collaboration:

Collaborating on Scope 3 emissions to understand the carbon footprint  and identifying areas for carbon reduction initiatives.

Benefits of Leveraging Digital Twins

Enhanced Communication: Digital Twins facilitate seamless communication, ensuring that OEMs and suppliers are aligned on goals and strategies.

Data-Driven Decision Making: Real-time insights provided by Digital Twins enable informed decision-making, leading to more efficient operations and resource allocation.

Proactive Issue Resolution: Early detection of issues and proactive collaboration help in mitigating risks and minimizing disruptions in the supply chain.

Continuous Improvement: By fostering a culture of innovation and collaboration, Digital Twins support continuous improvement efforts, driving operational excellence


There are many challenges on the road to more efficient supplier collaboration for original equipment manufacturers (OEMs), but there are also many chances for advancement and innovative ideas. Original Equipment Manufacturers (OEMs) can facilitate productive partnerships with their suppliers by resolving obstacles, such as aversion to change, insufficient knowledge and infrastructure, and challenges in estimating value.

To overcome obstacles like inexperience and outdated systems, No Code Digital Twins solutions provide an intuitive interface, quick deployment, and persuasibility. With the help of No Code Digital Twins, Original Equipment Manufacturers (OEMs) may confidently and nimbly traverse the complexity of supplier collaboration, offering increased visibility and scalability.

When original equipment manufacturers (OEMs) make smart use of these resources and tackle obstacles directly, they can unleash supplier collaboration's full potential and help their companies thrive in the dynamic world of supply chain management.