This case study provides the reader with insights into the strategic, organisational, and operational decisions involved in an automobile manufacturer's efforts to balance its goals of productivity and high quality with the more elusive goal of supplier development integration.
Aimed at students on supply chain, procurement and operations management courses, it provides essential information on supplier development, integration, socialization and trust. These are core and integral components of the Honda's overall direction.
This example from Honda illustrates the difficulty of balancing competing internal factors and context considerations in strategic decision making and organizational design considerations.
The case provides fascinating insights into Honda's business model, management systems and costs, as well as its focus on customer value and lean manufacturing. It goes into detail about the benefits of lean and waste reduction.
Gerard Chick is Chief Knowledge Officer at Optimum Procurement Group. He has considerable experience working with some of the keenest minds at the most senior level in supply management today. He is regularly invited to make keynote presentations and deliver workshops on strategic procurement issues to senior executive teams across the world.