Interesting Article:Weak Supplier Relations Costing Big 3 Automakers, Nissan Billions

Helmut Jilling

Auditor / Consultant
#1
This is an interesting poll...I have argued this for 10+ years. In fact, I feel it was the one failure that Alan Mulally did not fix at Ford, that would have helped Ford even more. The Detroit 3 are abusive to their suppliers. When the OE's are responsible for unnecessary costs, like unnecessary investigation, travel or sorting costs, they should be required to reimburse the supplier for the wasted expenses. Just like paying court costs if you lose a court case. That would cause OE personnel to be more thoughtful before they abuse and accuse a supplier, because it could come against their budgets. I have said for years, the Detroit 3 could sell 500,000 more vehicles if they had not caused so much anger in the supply chain.


http://www.industryweek.com/supplier-relationships/weak-supplier-relations-costing-big-3-automakers-nissan-billions-survey?NL=IW-07&sfvc4enews=42&cl=article_1_b&utm_rid=CPG03000001462790&utm_campaign=5295&utm_medium=email
 
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Ron Rompen

Trusted Information Resource
#2
Re: Interesting Article:Weak Supplier Relations Costing Big 3 Automakers, Nissan Bill

I agree completely, and its not just the OEMs that are doing it. Customers are less and less likely to do any initial investigation into the cause of a problem; just dump it on the supplier and let THEM do all the legwork. And if, perchance, you find that it IS the customers fault, dont expect any thanks, or concessions.
Things have changed a lot since I first got into this field many years ago, and not for the better.
 

dsanabria

Quite Involved in Discussions
#3
Re: Interesting Article:Weak Supplier Relations Costing Big 3 Automakers, Nissan Bill

This is an interesting poll...I have argued this for 10+ years. In fact, I feel it was the one failure that Alan Mulally did not fix at Ford, that would have helped Ford even more. The Detroit 3 are abusive to their suppliers. When the OE's are responsible for unnecessary costs, like unnecessary investigation, travel or sorting costs, they should be required to reimburse the supplier for the wasted expenses. Just like paying court costs if you lose a court case. That would cause OE personnel to be more thoughtful before they abuse and accuse a supplier, because it could come against their budgets. I have said for years, the Detroit 3 could sell 500,000 more vehicles if they had not caused so much anger in the supply chain.


http://www.industryweek.com/supplier-relationships/weak-supplier-relations-costing-big-3-automakers-nissan-billions-survey?NL=IW-07&sfvc4enews=42&cl=article_1_b&utm_rid=CPG03000001462790&utm_campaign=5295&utm_medium=email

...and the sad part is that those same upper management from the automotive industry navigated to the Aerospace industries and did not change habits nor ideology.
 

JLyt207

Involved In Discussions
#4
Re: Interesting Article:Weak Supplier Relations Costing Big 3 Automakers, Nissan Bill

I agree completely, and its not just the OEMs that are doing it. Customers are less and less likely to do any initial investigation into the cause of a problem; just dump it on the supplier and let THEM do all the legwork. And if, perchance, you find that it IS the customers fault, dont expect any thanks, or concessions.
Things have changed a lot since I first got into this field many years ago, and not for the better.
Sometimes the legwork is real. Years ago I remember we had to drive to Tonawanda from Detroit in winter. At the plant the guy that met us started giving us a dressing down as we walked to the isolation cage. Saw a bin with our company name on it almost overflowing with bad parts. Looking closer, not a single part was ours.
 

Bev D

Heretical Statistician
Staff member
Super Moderator
#5
Re: Interesting Article:Weak Supplier Relations Costing Big 3 Automakers, Nissan Bill

I fled the automotive and aerospace industries pretty quickly when I realized how medieval they were. It's bullying pure and simple. Easier to be mean than to be smart and hardworking, I guess. what I still don't get is why this attitude is so pervasive in today's world. but it's everywhere. sad. very sad.
 
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