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the lean supply chain process at toyota Motor Corporation
follow the practice of having only two to four supplier
partner per component.what is the effect of this on toyota
motor corporation ?
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Answer Posted / prabhu
Advantages:
1.Consistency of quality and delivery
2.The supplier fully understands your needs and requirements
3.The supplier can be involved early in the design
process
4.A cooperative rather than competitive relationship
5.Easy to control entire supply chain
Disadvantages:
1.A catastrophic event stops production
2.Less negotiation leverage
3.The suppliers may fear dependency on your business
4.The supplier may become self-righteous
5.Greater exposure to risk
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