Supply Chain Management: Nissan Cogent Case Study

2669 WordsDec 28, 201211 Pages
2012 - 2013 Maryam Ali Tahir SUPPLY CHAIN MANAGEMENT EARLY SUPPLIER INVOLVEMENT AND CODEVELOPMENT: NISSAN COGENT CASE STUDY SUPPLY CHAIN MANAGEMENT Table of Contents 1- INTRODUCTION ................................................................................................................................. 3 2- DISCUSSION....................................................................................................................................... 3 3- KEY THEORETICAL POINTS ................................................................................................................ 4 4- NISSAN COGENT…show more content…
Supplier development on the other hand is referd to as all the actions an organization takes to identify ways to improve the performance of its suppliers. It also involves facilitating the continual improvement of the products or goods and services supplied to its business unit (Krause et al, 1997). Supplier development requires an organization to embrace its supplier’s professionalism and aligning it to the customer’s company objective; this can be achieved by understanding, openness, communication, and feedback. Early Supplier Involvement (ESI) is a means for organizations to integrate their supplier’s capabilities in to their supply chain system and operations (Dowlatshahi, 1998). This technique leads to benefits in improvement of the design for manufacture, lowering of total cost, improved quality as well as more customer satisfaction as a result of improved product performance (Liker et al.). Dowlatshahi (1999) developed a model of ESI. His model consisted of four main components. However the component of design in the model is now focused more on the development of the process rather than on the development of the product. The four components of the Dowlatshahi’s Model are interrelated to one another and some of the tasks are performed aided by the other components to form a seamless integrated supply chain. However it is essential for information to flow freely between each component. Furthermore, in

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