Carmakers' SRM efforts start to pay off

27 June 2006
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28 June 2006 | Rebecca Ellinor

Attempts by Ford and General Motors to improve supplier relationships "may be starting to work", research has found.

The Original equipment manufacturer (OEM) - Tier 1 supplier working relations annual study found that while Toyota and Honda still have the lead in good supplier relations and are the preferred carmakers in the US to do business with, efforts by Ford and General Motors seem to be working.

"It appears they have bottomed out and the programmes they announced last year to improve their relations with suppliers are starting to have the desired effect," said John Henke, president and CEO of Planning Perspectives, which carried out the study.

He said the principle reason for this is that both Ford and General Motors are providing more timely and adequate information to suppliers than had been done in previous years.

"The improved communication leads to greater trust, both of which are important components of strong working relations," he added.

SMjun2006

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