This study of 453 supplier-automaker relationships in the United States, Japan, Korea, and examines the extent to which automakers manage their “market” and “partner” suppliers differently. The results show that U.S. automakers have in the past, the majority of their suppliers managed using a standard market model, Korean automakers have managed suppliers primarily as a partner, and Japanese automakers have somewhat different relationships with the suppliers depending on the type (ie, deg … Read more »

This study of 453 supplier-automaker relationships in the United States, Japan, Korea, and examines the extent to which automakers manage their “market” and “partner” suppliers differently. The results show that U.S. automakers have in the past, the majority of their suppliers managed using a standard market model, Korean automakers have managed suppliers primarily as a partner, and Japanese automakers have somewhat different relationships with the suppliers depending on the type (ie, , the degree of asset specificity and value) of the component. Only Japanese automakers have strategically segmented suppliers in such a way that many of the advantages of both the market and the partner models to implement. Companies should think strategically about supplier management and should not be a “one-size-fits-all” strategy for supplier management.
«Hide

from
Jeffrey H. Dyer,
Dong Sung Cho,
Wujin Chu
Source: California Management Review
23 pages.
Release Date: 1 January 1998. Prod #: CMR102-PDF-ENG
Strategic Supplier Segmentation: The Next “Best Practice” in Supply Chain Management solution HBR case