Customer—Supplier Relationships in the Motor Industry: A Vehicle Manufacturer's Perspective

Abstract

This paper reports a study of the supplier development process in three major assemblers of motor vehicles who have facilities based in the United Kingdom. Among the main findings are that supplier development is considered a key organizational objective, the three organizations are approaching supplier development in different ways but there are common threads running through the three approaches (for example single sourcing, measurement of performance and the provision of assistance to suppliers) and while there are clear advantages in terms of improved performance in quality, cost and delivery, the process of supplier development is not without disadvantage in relation to the resources required, reduced flexibility and worries about assisting the competition.

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