Case: Toyota, Ford, Gm and Volkswagen- Some Differing Opinions About Working with Suppliers

1214 WordsFeb 3, 20085 Pages
CASE: TOYOTA, FORD, GM AND VOLKSWAGEN- SOME DIFFERING OPINIONS ABOUT WORKING WITH SUPPLIERS. CASE SUMMARY: The main issues at stake in this case is the working relationship Toyota has with its suppliers, compared to other Auto manufacturers such as ford and General Motors. Another critical issue is which sets of parts should be standardized. Both Ford and GM have embraced the concept of an electronic market place for motor vehicle parts. The AutoX-change as it is called would bring automakers and their suppliers together. The rational for this e-market place is that it would drastically reduce costs by providing suppliers with more business opportunities. Toyota on the other hand tends to see its suppliers as partners. By engaging…show more content…
One of the main criticism of large oligopolistic firms like Wal-Mart and Target is that because of their market power they have the ability to drive suppliers into providing very low prices. Toyota clearly has subscribed to the fourth leg of the "three legged stool" approach. This "three legged stool" espouses the benefits of strong relationships with Customers, Employees and Owners. The fourth leg is Suppliers. Toyota is not being old fashioned by treating suppliers as partners. Toyota has recognized the benefits of good supplier relationships. Ronald Boreham, has helped Baldor Motors and Drives Company to be tremendously successful by focusing on fostering and developing long lasting quality relationships with suppliers. In establishing a partnership with suppliers, they have a vested interest to thoroughly understand your environment, needs and preferences. This will give them the ability to provide quality products within the desired time frames. At the end of the day a win-win situation exists. While there are definite benefits to be gained from the AutoX-change, the feeling that your supplier really has your best interest at heart and vice-versa, is not easily fostered by this medium. Every component can be considered to be competitive. Given the very competitive nature of the auto industry, the simplest of differences in design of the components can influence how
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