SUPPLIER DEVELOPMENT: A NISSAN-COGENT CASE-STUDY (M25EKM)
PRESENTED BY EMEKA ANTHONY EKPOKOBA 4664871
TABLE OF CONTENT.
Introduction
Chapter One: Supplier Development.
1.1: Definitions of Supplier development. 1.2: Organizational structures that support the Supplier development scheme. 1.3: Objectives of entering into a partnership with Suppliers 1.4: The role of Leadership in supporting Supplier Development.
Chapter Two: Implementing the Supplier Development scheme.
2.1: Achieving Commonality of purpose: Resolving differences between suppliers and customers. 2.2: Performance Metrics for measuring the scheme. 2.3: Achievements recorded by both parties. 2.4: What are the risks, cost & benefits for The team is usually made up of representatives from sales & marketing, purchasing, transportation; manufacturing and designs engineering with valuable expertise & knowledge on choosing suppliers and developing them into long term partners.
Communication: Communication is a very critical component in any supplier-development effort, as it helps in the integration of vertical unit in an organization, ensuring that the best decisions are made for the supply chain and not just to suit a unit. “Effective communication gives the people inside Nissan and the suppliers a chance to better understand each other, improving their overall performance to produce the better car, cheaper and faster” (Nissan Video case Study).Trust issues initially, was a major obstacle in developing a two way communication channel, “as most firms share the same supplier base and the suppliers simply didn’t trust the OEM’s enough to open up, opting to protect their competitive advantage instead” (Galt et al 1991). This Nissan overcame by threading carefully and getting the involvement of management to break down those barriers.
1.3: Objectives of entering into a partnership with Suppliers
According to Cousins et al, “Supplier development efforts typically have two main goals, either improving supplier’s operational performance or supplier’s capability to improve” (Cousin et al, 2008). The
