Who’s on top? Planning Perspective’s annual survey reveals that it’s the Japanese Honda Motor Co.
Honda topples Toyota
Honda Motor Co. beat Toyota Motor Corporation (TYO: 7203; NYSE: TM) as it clinched the numero uno slot with regard to relationships with suppliers. The latter slid from the first place after being the leader for more than a decade.
John Henke Jr., president of Planning Perspectives, noted, “Research we began in the early 1990s always showed Toyota as having the best relationship with its suppliers, but something seems to be changing.”
The Birmingham, Michigan-based consulting firm assessed that stringent demands on suppliers from Toyota’s engineers and inexperienced employees in the parts-purchasing department led the automaker to lose favor with the suppliers.
While Honda has a reason to cheer, it should take the triumph with a pinch of salt. Honda’s score in the Supplier Working Relations Index prepared by Planning Perspectives is 349. A score of 350 is considered to be the doorsill for “good to very good” relationships. Just goes to show how even the best may not be good enough!
Ford improves score big time
The Michigan-based Ford improved its score considerably, incidentally. From a 191 in 2008, it leapfrogged to a score of 232 in the current year. It, however, managed only the fourth rank, behind the Japanese automaker, Nissan Motor Company (TYO: 7201; NASDAQ: NSANY).
The high scores for Ford come as a slight surprise, as the automaker continues to embark on its plan of cutting its supplier base. Ford intends to have 750 key suppliers so that it streamlines its purchases from them and they, in turn, make voluminous and profitable business.
Tony Brown, Ford's purchasing chief, said, “The business is about profitable growth for all. In the end, we need to be the customer of choice for our suppliers. They need to have a healthy business in order for it to work for them."
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