Honda Inc. Supply Chain Management

Suppliers want steady orders and prompt payment, they also want to feel valued by the company that they supply.

The recommendations I would suggest for structuring the supplier relationship process for the Wolf Motors dealership network are Wolf Motors should consider a centralized corporate level Materials Management System to consolidate buying decisions for each of the 4 dealerships. This would facilitate greater leveraging with suppliers for consistent quality-control. They should study, calculate and make effective decisions on the materials that should be brought for each of the four dealerships instead of allowing each dealer to do it on their own. An automated

Supplier’s bargaining power: Most of the motorcycle suppliers depend on a single or two makers to purchase most of their products. This can cause great loss to a supplier if a buyer decides to switch to another supplier. This leads o the suppliers being too susceptible to demands hence they hold little authority.

Another lawful issue which influences the operations of Honda in its subsidiaries is the planned policies by overseas countries. For example, in the U.S, North America and Europe, multinational companies such as Honda are necessary to make available insurance cover for workers and offer training for expertise growth. Besides, companies are required by law to establish safety equipments to defend workers. Therefore, if Honda Company fails to hold to the set laws and regulations, it could be de-registered of face a number of

The Honda Motor Company first entered the European market in the early 1960s through the sale of motorcycles. Honda’s motor vehicle sales in Europe have been relatively poor, especially in the previous five years. And Honda executives wonder why their global strategy is sputtering.

However, regardless of its advantage, sole sourcing of supply is usually considered as risky decision since the company has to rely on the sole supplier. Therefore, it may result in a catastrophic event which is delay in shipment or stop production if the sole supplier has problems in terms of producing machines. Also, the supplier may become complacent or financial problems may occur if ACE increases the cost of production. Thus, maintaining the strong relationship between companies is crucial.

Honda‘s global operations are divided into 6 administrative regions responsible for operating. Hiring and engaging the people and philanthropic initiatives locally in the communities that Honda operates. Honda is pushing the independence of their local management and sales operations, at the same time with integrating and forward-looking plan for each region. They operate under the conduct guidelines that help member companies and associates in evaluating and managing risks, complying with laws and regulations, keeping a high level of transparency in operational level, that‘s all to maximize the worldwide customer satisfaction.

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

In 1969, when Honda came to Canada, we came as a little association with a dream. We began with bicycles and power equipment and it took a huge amount of work to get the sureness and trust of Canadians. Regardless, we locked in and after some time our things earned the respect of the business focus. Along these lines we created. In 1986, we manufactured a gathering office in Alliston, Ontario. In 1998, we amassed a minute plant at that same site, and in 2008, we completed the improvement of

Honda first arrived to Canada in 1969 as “a small company with a dream”. The manufacturing facility in Alliston, Ontario was built in 1988. In present day, Honda employs over 19,000 Canadians (Proudly Canadian, n.d.). The main mission of Honda is, “maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction” (Jurevicius, 2013) . Several roles were assigned to me at Honda, varying from completing physical demands analysis (PDAs) and ergonomic assessments, to assisting with contractor orientation training and on plant wide projects (which were later presented to the president of Honda).

The article discussed is written by Lisa Arnseth: “Sharing Value with Suppliers,” Inside Supply Management Vol. 23, No. 4. The article begins by talking about the economic downtown was hard on everyone and when things started looking up in 2009, that some suppliers could still not recover. Suppliers were forced to make cutbacks which made it very difficult for them to stay in business. Some of the larger manufacturers decided to help their suppliers by sharing their financial expertise, capital, and their lean manufacturing knowledge to help pull them out of the rut. In today’s world, a shared value approach is beginning to take course. The article begins discussing Toyota, Hyundai Motor Company and Samsung. These companies are looked at

One of the main reason behind this Japanese suppliers. Taking this into consideration SDT(Supplier Development teams) were developed .At first Nissan selected two engineers to undergo training activities in Japan. Based on this training, they have developed a 10 day improvement activity which started improving the suppliers by a major extent. They carry out evaluation of supplier activities at the supplier place and discuss necessary improvements and disclose the necessary action plan with senior management and take approval from them and carry on with improvement activity.

Industries in the new era tend to concentrate on linking with other corporations on a geographic level, to bring in all their forces together to create a highly technical & cost effective collaboration. This collaboration also involves joining forces with the suppliers across the product development cycle for easy access & faster processing of the products. This also ensures quick access to markets, lower product cost & better quality. Attaining successful suppliers results in success of the company & enhances its overall performance. It isn’t easy for a company to recognize if the suppliers they choose are capable of supporting their new product development or hinder their growth & effect the company’s performance. Companies need to be able to identify if the supplier integration during the product development phase has negative or positive effects on the technological risks & uncertainty. They need to choose the right decision for their company. Suppliers provide materials & services to an organization based on the new product requirements. The product or services provided by the suppliers may not be of a greater quality, determining this is the major job of a company. Since there might be chances that the supplier will have a better knowledge about the products than the companies, companies need to be cautious about it. Compromise on cost can be done but

Honda's principal executive office is at 1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo, 107-8556, Japan. Honda's business segments are motorcycle business, automobile business, financial services business, and power product and other businesses. The following table is the breakdown of Honda's revenues from external customers by category of activity and by geographical markets based on the location of the customer. The information relates to the fiscal years ended March 31, 2006, 2007 and 2008 (Stem, 1990).Fiscal years ended March 31, (YEN) Billions

The Chinese automobile market has grown by 1/3. This means that there is a lot more room for automobile companies like Honda to expand and grow. Honda will be able to increase its production and sales as the market will be bigger.