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Toyota Supplier Management

Building Deep Supplier Relationships

Presented by:
Group # 1
MSIL team

Introduction
Business now is highly scale driven and technology intensive,
hence suppliers have gained greater role in supply chain.
Companies now largely reply on their suppliers to improve costs,
quality and speed up developments.
Due to such reasons, now focus is on developing suppliers into
business partners.
This gave way to keiretsu, term for close network of suppliers. Their
focus is to continuously learn, improve and prosper with the
PARENT firm.

History in US market
Three Auto giants of US, GM, FORD & Chrysler, realized this
capability of Toyota and Honda, and tried to replicate same model.
The model involved:
Awarded few few chosen suppliers long term business
Promoted tier 1 and tier 2 vendor development
Development of sub-systems instead of just components
Supplier responsibility

But it failed because of following reasons

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