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…show more content… They chose to help the suppliers that Terex had been developing for several years into their primary or secondary suppliers. Terex offered these companies a way to grow or fund their business in exchange for a nominal discount. Terex only expected at most, a 10 percent return from their suppliers, but were shocked to find they received more than they intended. They were able to have success in this because Terex met with the C-level members of each supply company throughout the year. It was also beneficial to the success of the proposal that Terex remained open to change. If the suppliers were not happy with something than Terex was quick to accommodate the problems. Terex used their Key Supplier Readiness Program (KSRP) to establish a deeper relationship with their suppliers. Their goal was to increase capacity. They began inviting their suppliers to their headquarters and allowed them to see their business processes. They organization as a whole later adopted the Hoshin Kanri method. This was very beneficial in regards to keeping their company lean. It also helped depict that Terex was committed and willing to work with their suppliers. Their goal was to have the suppliers committed to focusing on improving performance.
The goal of this article was to show different ways of how to approach your business partners in a manner that will benefit all parties involved. Shared-value is an approach that is being embraced by these