Strategic Supplier Segmentation: A model for managing suppliers in the 21st Century
Author(s)
Chu, Wujin
Dyer, Jeffrey
Cho, Dong Sung
Date Issued
December 1, 1996
Series/Report no.
IMVP;144a
Abstract
This study of 453 supplier-automaker relationships in the U. S., Japan, and Korea examines the
extent to which automakers manage their "arms-length" and "partner" suppliers differently. The findings indicate that U.S. automakers have historically managed all of their suppliers in an
arms-length fhshion, Korean automakers have managed all suppliers as partners, and Japanese
automakers have segmented their suppliers and have somewhat different relationships depending
on the nature of the component. Only Japanese automakers (Toyota and Nissan) have
strategically segmented suppliers in such a way as to realize the benefits of both the arms-length
and partner models of supplier management. We argue that firms should think strategically
about supplier management, and perhaps should not have a "one size fits all" strategy for supplier
management.
Subjects
automakers
Nissan
supplier management
Toyota
Persistent DSpace Link
