Buyer-supplier co-development in UK automotive manufacturing: closing the continuous improvement loop Online publication date: Wed, 02-Jul-2003
by Philip Southey, Derek Steeple, Mirko Wilhelm
International Journal of Manufacturing Technology and Management (IJMTM), Vol. 2, No. 1/2/3/4/5/6/7, 2000
Abstract: Many vehicle manufacturers are now engaging their suppliers in co-development relationships which require the supplier to take full responsibility for the design, manufacture and warranty of their supplied parts. In doing this, both parties seek to gain competitive advantage by more fully leveraging their respective technical, human and financial assets for improved performance. While simple in theory, this practice of closer supplier integration from the vehicle development stage onwards poses many challenges for both buyer and supplier. This paper explores some of the main drivers of co-development relationships, investigates the key barriers to establishing robust co-development processes and proposes some practical steps which can underpin improved co-development performance. Case study companies include Jaguar Cars Ltd., and the UK arms of Toyota and Nissan.
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