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Study Suggests Connection Between Vehicle Quality And Automaker's Relationship With Its Suppliers
 Date: July 11, 2002 08:33
 Submitted by:  ivtec1
 Source: www.canadiandriver.com
 Credibility Rating: N/A


From the article:

The survey found that Toyota and Honda continue to set the standard for supplier-OEM working relationships. Important findings included:

* Suppliers rank Honda and Toyota as the best OEMs with whom to conduct business
* Honda and Toyota balance quality with price when working with their suppliers while the domestic OEMs stress price significantly more than quality
* Detroit's Big Three have practices that hinder the suppliers from doing their best job in meeting the OEMs' price reduction and quality improvement expectations
* Domestic OEMs go about demanding price concessions from their suppliers in a manner that shows little concern for the suppliers' economic viability or supplier working relationships, while Honda and Toyota price reduction demands are conducted in a manner that demonstrates concern for both OEMs and suppliers.

A major outcome of the study is the supplier ranking of the OEMs as a place to conduct business. The overall ranking of the OEMs shows that suppliers clearly consider Toyota and Honda as the best OEMs with whom to conduct business by a wide margin over the three domestic OEMs. General Motors, Ford, and Chrysler had scores of 460, 464, and 477 respectively, while Toyota and Honda scored 30 percent higher at 610 and 604. Nissan was in the middle with a ranking of 532, well below Toyota and Honda, but over 10% better than the domestic OEM rankings.

More at the link below:

http://www.canadiandriver.com/news/020711-2.htm

Last edited by Tuan on July 11, 2002 19:01

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