Nissan case study
Points involved in supplier development
Supplier development
Co development
Why suppliers development
Objectives
Foundation of supplier development
Organisational structure
Leadership role
Methodology involved in supplier development
Tools involved in supplier development
Measuring supplier development performance
Risk, cost involved and benefits
Improved achieved
Lesson learned
Future trends
Supplier development
Supplier development is considered as a key aspect in the design and development stage of production, its basically a Co-development activity between supplier and customer. “Co-development processes are an instrument used in several industries to gain a competitive advantage and to reduce development costs” ( Fliess, 2008)
Supplier development was defined Krause as “Any set of activities undertaken by a buying firm to identify measure and improve supplier performance and facilitate the continuous improvement of the overall value of goods and services supplied to the buying company’s business unit” (Krause et al 1998).
By analyzing this definition, we can evaluate that customer works with supplier in
Within this definition are two distinct types of engagement. The first is externalised, supplier development, where the customer measures performance, and provides incentives for the supplier to improve. The second is internalised. In this case the supplier provides resource and investment to enable them to improve.
This increasing dependence on suppliers (Krause et al 1998), and the importance they play in both the maintenance of an existing supply chain and the development of future strategic capabilities suggests a growing requirement on organisations to effectively manage and develop their suppliers.
Enhancements can be in product, process, and dimensions of performance such as quality, delivery and cost (Quayle 2000). These development opportunities, through
Supplier development
Co development
Why suppliers development
Objectives
Foundation of supplier development
Organisational structure
Leadership role
Methodology involved in supplier development
Tools involved in supplier development
Measuring supplier development performance
Risk, cost involved and benefits
Improved achieved
Lesson learned
Future trends
Supplier development
Supplier development is considered as a key aspect in the design and development stage of production, its basically a Co-development activity between supplier and customer. “Co-development processes are an instrument used in several industries to gain a competitive advantage and to reduce development costs” ( Fliess, 2008)
Supplier development was defined Krause as “Any set of activities undertaken by a buying firm to identify measure and improve supplier performance and facilitate the continuous improvement of the overall value of goods and services supplied to the buying company’s business unit” (Krause et al 1998).
By analyzing this definition, we can evaluate that customer works with supplier in
Within this definition are two distinct types of engagement. The first is externalised, supplier development, where the customer measures performance, and provides incentives for the supplier to improve. The second is internalised. In this case the supplier provides resource and investment to enable them to improve.
This increasing dependence on suppliers (Krause et al 1998), and the importance they play in both the maintenance of an existing supply chain and the development of future strategic capabilities suggests a growing requirement on organisations to effectively manage and develop their suppliers.
Enhancements can be in product, process, and dimensions of performance such as quality, delivery and cost (Quayle 2000). These development opportunities, through
References: Sciencedirect.com.(2013). Supplier integration—Controlling of co-development processes.available at: http://www.sciencedirect.com/science/article/pii/S0019850105001252 A chronological review of the literature on co-development processes Authors Focus Nature of study Findings and conclusions Clark (1989),Clark & Fujimoto, 1989 and Clark & Fujimoto, 1991, Cusumano and Takeishi (1991) Comparing different practices in Japan and America Empirical Most of the suppliers in US auto industry are after the completion of detailed design Brockhoff (1992) Transaction costs Empirical—survey Analysis of the impact of technical characteristics of the product under development and impact of contractual arrangements within which the development takes place. Griffin and Hauser (1992) Interfaces within and between the involved companies Empirical Use of OFD leads to more efficient communication within the team and encourages more manufacturer-to-supplier communication. Birou and Fawcett (1994) Comparing different practices in Europe and America Empirical—survey Analysis of different characteristics of co-development with suppliers in both continents in different industrial areas