Regal Marine implements many supply- chain management strategies that enable it to remain highly competitive both in quality and cost. The use of partnerships, purchasing groups, local vendors and outsourcing create value for the company. Perhaps the most integral strategy Regal Marine uses is long-term partnerships with a few key suppliers. Partnerships are mutually beneficial relationships between suppliers and customers where trust is nurtured to the extent that they are able to last for long periods of time and collaborate on design. These suppliers are updated with distribution lists to ensure adequate supplies are available when needed. Designers meet with Volvo, Regal Marine’s main engine supplier to create new designs and come up with innovations for existing lines. There is such trust with the vendors that many are updated from the floor to supply new orders which is another strategy. Regal Marine uses VMI or vendor managed inventory systems that communicate needed supplies straight from the workroom floor. This allows Regal Marine to keep lower inventories and save time spent on ordering, Regal Marine joined with other small boat builders to form a purchasing group called the American Boat Builders. The strategy known as a virtual corporation allows its members to act as a single firm to purchase supplies. By joining together in a virtual corporation, these boat builders can buy at a volume level that enables price advantages. Regal Marine purchases hardware and fasteners from local vendors which helps it reduce inventory costs. One vendor even has an agreement that keeps the title from passing to Regal Marine until after the fastener is attached to the boat. This technique is not only effective at lower costs for Regal Marine, but benefits smaller, local distributors where building facilities are located which supports