A small tool making company was set up by two partners who previously worked together at a much bigger company. They both took out personal loans to fund the purchase of a small premises and a few basic machines. Initially, they worked part-time, at night, until the company grew sufficiently for them to go full-time. One of their first customers asked them to join a suppliers’ network, which they did. This network was intended to improve supplier skills and provided the company with in-house training in information technology. This training has enabled them to develop useful skills to which they would not otherwise have had access. The network also sought to introduce common pricing standards for all its components suppliers. This proved too difficult to maintain, however, because it was too complicated and prices got tighter as time went on.

In the future, the company would like to see the suppliers’ network get bigger and to try again to introduce the common pricing structure which previously proved too difficult.