Restructuring Supplier Relationships in U.S. Manufacturing for Improved Quality1

The Japanese model of long-term, tightly integrated, and exclusive buyersupplier relationships has had a strong influence on U.S. manufacturing industries. Quality practitioners advocate developing such relationships and there has been widespread interest among U.S. manufacturers seeking to improve quality. We surveyed U.S. companies in three internationally competitive manufacturing industries and found widespread efforts to restructure supplier relationships but varying degrees of progress toward, commitment to, and satisfaction with the Japanese model. Industry structure and competitive forces help to explain the differences. There is also evidence that important elements of Japanese practice are missing in U.S. implementations.

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