The focus in the car industry may be cost, but it does not mean partnerships are being ignored, says Rob Johnson
Search Page
Mazda, the Japanese car-maker, is encouraging its suppliers to enter equity alliances with foreign component makers. The group is to begin weeding out its supplier base and wants its parts makers to meet international standards in areas including cost and technology. James Miller, Mazda president, said relationships with global parts groups would be formed within six months.
While aerospace buyers and suppliers have recognised the benefits of integrated project teams (IPTs), many are being put off by difficulties in implementation, industry experts have warned. Rob Crook, chair of the steering committee of Supply Chain Relationships in Aerospace (Scria), said a lack of generic guidelines was part of the problem.
Customer service is seen as the most influential factor in differentiating between suppliers, according to a survey by the software manufacturer Symix. Product quality is judged the most influential factor by just 6 per cent of the 50 manufacturing respondents, while the ability to deliver on time is picked by 26 per cent.
Almost half of all business people believe emotions play a major role in purchasing decisions. A survey by purchasing card specialist Cendant Business Partners in conjunction with the Institute of Directors found that,out of a total of 360 decision-makers in a variety of business sectors, 45 per cent said that both emotion and logic influenced their choices.
Top contractors are still accepting the cheapest tenders and neglecting partnering and long-term relationships, according to recent research.
Marks & Spencer has ended a 30-year supplier relationship with Scottish textile maker Baird in its move to source more clothing overseas. William Baird supplies M&S with 7 per cent of its clothing, making it the retailer’s fourth largest supplier. M&S accounted for 40 per cent of Baird’s turnover in 1998. The loss of the retailer’s contract has jeopardised 19 Baird factories.