SUPPLY CHAIN MANAGEMENT

Abstract

This research shows how manufacturers instigated supplier development from a ‘Japanese’ perspective represented in Nissan-Renault and from a ‘Western’ point of view represented in General Motors GM. And also covers why they might want to develop their suppliers, what benefits it would bring.

Many sources have been studied through various means from books, to internet web pages. A range of views were reviewed such as suppliers’ perspective of their customers, their relationships, and how customers are improving their suppliers’ abilities to deliver quality and cut costs.  This not only included the physical means of the supply chain, but also the information flow, communication and knowledge-sharing.

The research identified the main differences between the Japanese and Western Production Systems and the viability to better one another in order to gain the competitive edge. 

Both GM and Nissan-Renault participated in supplier development with a hands-on approach.  Some concepts are incompatible with other systems but both have used the quality circles to cut part costs.