Supplier-partnering management: a case study of the Kaisha

Abstract

Over the last decade many business have begun to recognise the competitive advantages that can be found from developing co-operative partnerships with suppliers. The automotive industry has been in the forefront in developing buyer-supplier partnerships as they attempted to remain competitive with the Japanese firms. This case study examines the factors that may influence buyer-supplier relationships, in particular as they relate to the procurement operations of an American automotive subsidiary of a Japanese firm. The Japanese parent company has a long history of keiretsu1 supplier relationships and how these have translated into the American firms operations is of particular consideration. The American subsidiary is undergoing an organization restructuring that will have a future impact on supplier relations. Several factors are proposed for consideration for future research. These include how the parent firm’s keiretsu relationships impact the American firm’s supply base. Also of consideration is how successful the firm will be in determining the particular aspects of different supplier relationship models that will provide the most benefit in establishing a supplier-partnering management program.