Objective: Over several decades, a global contract mining firm developed a close and comfortable relationship with a single heavy equipment OEM. While the partnership offered perceived stability, over time the supplier became complacent, assuming that loyalty would override performance, price, and innovation considerations. The organisation recognised this dynamic as a commercial risk and decided to reintroduce competitive tension, making clear that status quo performance was no longer acceptable and opening the door to better value, while still maintaining cost-effective legacy fleet support.

Approach: As GM of Supply Chain and Technology, Catalyst Strategy’s founder led a transparent and structured approach to reinvigorate supplier accountability. Rather than cutting ties outright, the strategy involved engaging the incumbent OEM in a competitive sourcing process, alongside new and credible suppliers. They were given early notice of this intent, clear context around the business’s changing expectations, and opportunities to sharpen their offerings.

However, the incumbent viewed the process with scepticism, assuming the organisation was simply using it as a negotiating tactic. They responded with token discounts and minimal innovation, believing the longstanding relationship guaranteed their position.

When those alternatives ultimately led to a series of major fleet transactions with new partners, the incumbent returned with significantly sharper commercial offers revealing just how much had been left on the table over the years.

Positive Impact: The competitive process delivered substantial commercial value, improved technology outcomes, and signalled a clear shift in expectations. By demonstrating that relationships must be performance-based, not comfort-based, the organisation reset supplier dynamics and re-established procurement credibility.

Importantly, the process was handled with professionalism and transparency, and as a united front. The legacy supplier was not blindsided. They were engaged and given every opportunity to respond accordingly, but ultimately, they underestimated the resolve for change. When they did eventually return with more competitive offers, the organisation had already committed to diversifying its supply base with improved value. This created a more balanced playing field for future negotiations.

The lesson was clear: in supplier relationships, complacency is costly — for both parties.

If you're looking to challenge complacency, rebalance relationships, or sharpen your outcomes, let’s explore how Catalyst Strategy can help.