Until recently, many high-tech manufacturers - especially small and medium-sized businesses - have been able to survive by the 80/20 rule, where they applied 80% of their operational focus to 20% or less of their critical customers and suppliers. That was then.

The new mandate from channel masters is for more intense, collaborative relationships with fewer suppliers. They are driving to a new demand-driven value network. In this environment, suppliers must increase performance in product development, lifecycle management, quality and total cost of ownership.

This executive brief is written by Industry Directions Inc., compliments of Microsoft Corporation.