This study of 453 supplier-automaker relationships in the U.S., Japan and Korea is considering the extent to which automakers manage their "arm's length" and "partner" suppliers differently. These data show that American automakers have traditionally controlled the majority of their suppliers using arm's length model, Korean automakers have managed providers primarily as partners, and Japanese automakers have several different relationships with suppliers, depending on the nature (for example, the degree of specificity of assets and the cost of ) component. Only Japanese automakers are strategically segmented suppliers so as to realize the many advantages at hand, as well as partner models. Companies need to think strategically source control and should not have a "one size fits all" strategy of supply chain management. "Hide
by Jeffrey H. Dyer, Dong Sung Cho, Wujin Chu Source: California Management Review 23 pages. Publication date: 01 January 1998. Prod. #: CMR102-PDF-ENG
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