Critical Partners and Suppliers
Why are Critical Partner & Supplier Relationships valuable?
Strategic partners and specialist suppliers can be a major competitive advantage. They might give you priority access, better pricing, exclusive products, or specialist expertise that competitors can’t match.
While relationships aren’t a formal IP right, the agreements, processes, and confidential information tied to them can be treated like intangible assets. Typical examples of critical partner relationships are:
- Exclusive supply or distribution contracts
- Favourable, long-term partner agreements
- Jointly developed processes or products
- Confidential pricing, sourcing, or technical support
How do Critical Partner & Supplier relationships affect me?
In times of financial distress, being able to demonstrate the importance of these unique relationships may help secure some confidence from your lenders and third parties. Also, it could be that since these critical partners and/or suppliers will likely have invested some additional time, effort and IP into the relationship with you, then perhaps they may be more inclined to discuss what support they may be able to offer you, since they are “invested” with you in your business.