Session21handout

Session21handout - Supply Chain Modeling Session 21:...

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Unformatted text preview: Supply Chain Modeling Session 21: Supplier Management- Barclay’s Atalay Atasu Objective of Today’s Class Supplier Management Approaches Supplier management in the auto industry Arm’s length vs. partnership models Print Procurement at Barclays Debrief the second simulation game (Network) Supplier Management Models in the Auto Industry US auto man. Supplier s Supplier s Toyota “ Toyota helped us dramatically improve our production system. We started by making one component, and as we improved, [Toyota] rewarded us with orders for more components. Toyota is our best customer.”-Senior executive, supplier to Ford, GM, Chrysler, and Toyota, July 2001** “ The Big Three [US automakers] set annual cost- reduction targets [for the parts they purchase]. To realize those targets, they’ll do anything. [They’ve unleashed] a reign of terror, and it gets worse every year. You can’t trust anyone [in those companies]”-Director, interior systems supplier to Ford, GM, and Chrysler, October 1999* * And ** Source: Building Deep Supplier Relationships, HBR, December 2004 Arm’s Length Partnershi p US versus Japanese Auto Manufacturers US auto manufacturers Ford uses online reverse auctions to get the lowest price GM writes contracts that allow GM to shift to a less expensive supplier at a moment’s notice Chrysler tried to build keiretsu but was unsuccessful Conclusion: doubt the partnership model can be replicated outside the culture and society of Japan But, Japanese partnering model is alive and flourishing not just in Japan but also in North America Toyota and Honda enjoy the best supplier relations in the US auto industry and are rated by suppliers as the most preferred companies to work with What does “partnership” really mean?...
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This note was uploaded on 01/25/2011 for the course MGT 4803 taught by Professor Staff during the Spring '08 term at Georgia Tech.

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Session21handout - Supply Chain Modeling Session 21:...

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