For Better or For Worse: Technical Change and Buyer‐Supplier Relationships

For advanced manufacturing technologies to be exploited fully in the UK automotive industry strong, long‐term links must exist between the vehicle builders and their component suppliers. The resolved model presented here approximates to these links, but is itself affected by new technologies to the extent that new developments in the technical field provide opportunities for co‐operation in the operational areas. If the links between vehicle builders and their suppliers are to become stronger then points of contact between the organisations must reflect a strategic partnership and not a purely commercial connection. Contact is required at the engineering level, the purchasing level and the policy‐making level. The nature of purchasing changes in this situation from a price‐fixing operation to a capacity/technology matching function.