Procurement Glossary
Co-creation with suppliers: Joint value creation and innovation
November 19, 2025
Co-creation with suppliers refers to the strategic collaboration between companies and their suppliers for the joint development of products, services or solutions. This collaborative approach makes it possible to pool the expertise and resources of both partners and develop innovative approaches. Find out below what co-creation with suppliers means, which methods are used and how you can successfully implement this strategy.
Key Facts
- Co-creation uses the combined expertise of buyers and suppliers for innovative solutions
- Reduces development times and costs through shared resources and risks
- Strengthens long-term partnerships and improves supplier relationships
- Enables access to new technologies and market opportunities
- Requires clear agreements on intellectual property and profit distribution
Contents
Definition: Co-creation with suppliers
Co-creation with suppliers describes a collaborative approach in which companies and their suppliers work together on the development of new products, processes or services.
Core elements of co-creation
Successful implementation is based on several key components:
- Joint goal setting and strategy development
- Open exchange of knowledge and resources
- Shared responsibility for results and risks
- Transparent communication and decision-making
Co-creation vs. traditional supplier relationships
In contrast to conventional buyer-supplier relationships, co-creation goes beyond mere transactions. While traditional approaches focus on cost optimization and specification fulfillment, co-creation focuses on joint value creation. Strategic partnerships often form the basis for successful co-creation projects.
Importance of co-creation in Procurement
Co-creation is becoming a decisive competitive advantage for modern procurement organizations. It enables innovation management to be strategically anchored in Procurement and at the same time shortens time-to-market.
Methods and procedures
The implementation of co-creation requires structured approaches and proven methods in order to achieve optimal results.
Structured project planning
Successful co-creation begins with detailed project planning. Joint business plans define common goals, milestones and success criteria. The establishment of cross-functional teams ensures the integration of different specialist areas and perspectives.
Agile development methods
Modern co-creation projects use agile approaches such as design sprints for rapid prototyping and iteration. These methods make it possible to test and adapt ideas quickly:
- Regular sprint reviews with all participants
- Continuous feedback loops
- Flexible adaptation of project goals
Piloting and scaling
Step-by-step implementation through pilot projects with suppliers minimizes risks and enables learning effects. After successful validation, proven approaches can be transferred to other areas.
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Important KPIs for co-creation with suppliers
Measuring the success of co-creation requires specific key figures that take both quantitative and qualitative aspects into account.
Innovation indicators
Central metrics focus on the innovation performance of the collaboration. The number of jointly developed products or improvements per year shows the productivity of the partnership. Time-to-market reduction and development cost savings quantify the efficiency gains through co-creation.
Partnership quality
Qualitative indicators assess the depth and stability of the relationship:
- Supplier satisfaction with co-creation processes
- Number of joint projects per supplier
- Duration of the co-creation partnerships
- Recommendation rate among suppliers
Economic performance measurement
The return on investment (ROI) of co-creation activities and the share of sales from jointly developed products measure financial success. In addition, cost savings from improved processes and reduced development risks should be recorded.
Risks, dependencies and countermeasures
Co-creation poses specific challenges that need to be addressed through proactive risk management.
Intellectual property conflicts
Joint development can lead to disputes over property rights. Clear IP agreements must be made before the start of the project. These should clearly regulate usage rights, license fees and exploitation rights.
Dependency risks
Intensive co-creation can lead to one-sided dependencies. Companies should diversify their supplier base and identify alternative development partners:
- Regular assessment of supplier dependency
- Development of backup strategies
- Continuous market monitoring for new partners
Cultural and organizational barriers
Different corporate cultures can make collaboration difficult. Successful co-creation requires cultural sensitivity and structured change management processes. Regular communication and joint workshops help to build trust and avoid misunderstandings.
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Practical example
A car manufacturer is working with an electronics supplier to develop an innovative battery management system for electric vehicles. The project starts with a proof of concept in which both partners contribute their core competencies: the manufacturer contributes its vehicle integration and the supplier its battery technology. The close cooperation reduces the development time by 40% and the costs by 25%.
- Joint investment in research and development
- Shared patent rights according to predefined criteria
- Exclusivity agreement for the automotive sector
Current developments and effects
The co-creation landscape is constantly evolving, driven by technological advances and changing market requirements.
Digital transformation and AI integration
Artificial intelligence is revolutionizing co-creation processes through improved data analysis and predictive models. AI-supported platforms make it possible to identify suppliers based on complementarity and innovation potential. Digital collaboration tools facilitate cooperation across geographical boundaries and accelerate decision-making processes.
Open innovation platforms
Open innovation approaches extend co-creation beyond traditional supplier boundaries. Companies are increasingly using Supplier Innovation Challenges and Supplier Innovation Days to tap into a broader spectrum of innovation partners.
Sustainability as a driver of innovation
Environmental and social standards are becoming central elements of co-creation. Suppliers and buyers work together to develop sustainable solutions that offer both ecological and economic benefits. This development leads to new evaluation criteria and incentive systems in cooperation.
Conclusion
Co-creation with suppliers is becoming a strategic success factor for modern procurement organizations. Joint value creation enables innovation cycles to be accelerated, costs to be reduced and sustainable competitive advantages to be created. However, successful implementation requires structured approaches, clear agreements and continuous relationship management. Companies that use co-creation strategically position themselves optimally for future market requirements.
FAQ
What distinguishes co-creation from conventional supplier development?
Co-creation goes beyond traditional supplier development in that both partners participate equally in value creation. While traditional approaches often involve one-sided specification requirements, co-creation partners develop solutions together and share both risks and successes.
How do you select suitable partners for co-creation?
Successful co-creation partners are characterized by complementary skills, a willingness to innovate and cultural compatibility. Important criteria are technological expertise, financial stability, trustworthiness and a willingness for long-term cooperation. A systematic evaluation of ideas helps in the selection of partners.
What are the legal aspects of co-creation?
Key legal issues include intellectual property rights, distribution of liability, confidentiality agreements and profit sharing. Clear contracts should regulate all aspects of the collaboration before the project begins, including exit scenarios and conflict resolution mechanisms.
How do you measure the success of co-creation projects?
Success is measured using a combination of quantitative and qualitative KPIs. These include innovation rate, time-to-market reduction, cost savings, partnership quality and long-term value creation. Regular reviews and feedback loops ensure continuous improvement of the collaboration.
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