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HTML <html> <head> <title>General Motors Sees Improvement with Supplier Relations</title> </head> <body> <h1>General Motors Sees Improvement with Supplier Relations</h1> <div class="info">Author: <a href="author_1_98520.html">Iver Penn</a></div><div class="body"><p align="justify"><br /> We all know that both Toyota and Honda have a pretty tops relationship when it comes to good working relations with their suppliers, aside from being the preferred U.S. automakers with whom suppliers want to do business. <br /> <br><br><br /> But don’t look now, according to results of the 7th Annual North American OEM-Tier 1 Supplier Working Relations Study, efforts by General Motors to improve relations with its suppliers have had a significant, positive impact in how its suppliers view working with the company. <br /> <br><br><br /> "The improvement is very good news for GM," says John W. Henke, Jr., Ph.D., president and CEO, of Planning Perspectives, Inc., which conducts the annual study. "In late 2005, Bo Andersson (GM's Group Vice President, Global Purchasing and Supply Chain) announced a GM program to improve relations with its suppliers. It is now apparent that the program is working. In fact, in the 15 years we've been doing studies of this type in the automotive and other industries worldwide, we have never seen such a dramatic improvement.<br /> <br><br><br /> Unfortunately for Ford, however, it has slipped into last place - the position held by GM for the past 15 years. The troubled Dearborn automaker now has the worst supplier relations of any North American automaker.<br /> <br><br><br /> "Ford announced a similar program about the same time as GM, but our study shows the Ford program has been a disappointing failure. This is unfortunate because Ford more than ever is dependent on the support of its suppliers to help in its turn around, as was Chrysler in early 1990s. A key to Chrysler's success then was building strong relations with suppliers on its way to a decade of strong profits," Henke said.<br /> <br><br><br /> Both General Motors (also maker of <a href="http://www.wholesalegparts.com/gmc-hubcaps/" title="GMC hubcaps">GMC hubcaps</a>) and Ford are far behind Toyota and Honda, which rank 1 and 2, respectively, on the study's Working Relations Index (WRI). Nissan is ranked number 3, with DCX number 4, and GM and Ford are ranked 5 and 6, respectively.<br /> <br><br><br /> The WRI rates these six major North American OEMs in 17 key areas that impact their supplier working relations. These include such things as degree of trust, open and honest communication, amount of help given to suppliers to reduce costs and the supplier's profit opportunity at the OEM.<br /> <br><br><br /> This year Ford ranks at the bottom of the six North American OEMs with a ranking of 162, a 12 point drop from last year. GM moved up to 174 from 131, and Chrysler fell to 199 from 218 after a steady four-year gain. Chrysler's drop is corroborated by a decrease of 50% in the number of suppliers who consider DCX a "most preferred or very preferred" OEM to work with. Nearly 50% of Ford's suppliers would rather not work with Ford.<br /> <br><br><br /> About The Study<br /> Now in its 7th year, the annual study determines the supplier working conditions in numerous areas at the North American domestic OEMs (GM, Ford and DaimlerChrysler) and the foreign domestic OEMs (Toyota, Honda and Nissan). <br /> <br><br><br /> This year, 308 suppliers - representing 52% of the OEMs' total annual buy - responded to the survey. Demographically, the supplier-respondents represent 35 of the Top 50 North American suppliers, 58 of the Top 100 and 69 of the Top 150 North American suppliers. The study culminates in the Working Relations Index (WRI) which is a quantitative ranking by suppliers of their working relations with each of the six OEMs.<br /> </p></div> <div class="source">Article Source: <a href="http://www.articlealley.com/article_180775_31.html">http://www.articlealley.com/article_180775_31.html</a></div> <div class="author"> <div class="authorBio"></div> </author> </body> </html>
Text General Motors Sees Improvement with Supplier Relations Author: Iver Penn We all know that both Toyota and Honda have a pretty tops relationship when it comes to good working relations with their suppliers, aside from being the preferred U.S. automakers with whom suppliers want to do business. But don’t look now, according to results of the 7th Annual North American OEM-Tier 1 Supplier Working Relations Study, efforts by General Motors to improve relations with its suppliers have had a significant, positive impact in how its suppliers view working with the company. "The improvement is very good news for GM," says John W. Henke, Jr., Ph.D., president and CEO, of Planning Perspectives, Inc., which conducts the annual study. "In late 2005, Bo Andersson (GM's Group Vice President, Global Purchasing and Supply Chain) announced a GM program to improve relations with its suppliers. It is now apparent that the program is working. In fact, in the 15 years we've been doing studies of this type in the automotive and other industries worldwide, we have never seen such a dramatic improvement. Unfortunately for Ford, however, it has slipped into last place - the position held by GM for the past 15 years. The troubled Dearborn automaker now has the worst supplier relations of any North American automaker. "Ford announced a similar program about the same time as GM, but our study shows the Ford program has been a disappointing failure. This is unfortunate because Ford more than ever is dependent on the support of its suppliers to help in its turn around, as was Chrysler in early 1990s. A key to Chrysler's success then was building strong relations with suppliers on its way to a decade of strong profits," Henke said. Both General Motors (also maker of GMC hubcaps) and Ford are far behind Toyota and Honda, which rank 1 and 2, respectively, on the study's Working Relations Index (WRI). Nissan is ranked number 3, with DCX number 4, and GM and Ford are ranked 5 and 6, respectively. The WRI rates these six major North American OEMs in 17 key areas that impact their supplier working relations. These include such things as degree of trust, open and honest communication, amount of help given to suppliers to reduce costs and the supplier's profit opportunity at the OEM. This year Ford ranks at the bottom of the six North American OEMs with a ranking of 162, a 12 point drop from last year. GM moved up to 174 from 131, and Chrysler fell to 199 from 218 after a steady four-year gain. Chrysler's drop is corroborated by a decrease of 50% in the number of suppliers who consider DCX a "most preferred or very preferred" OEM to work with. Nearly 50% of Ford's suppliers would rather not work with Ford. About The Study Now in its 7th year, the annual study determines the supplier working conditions in numerous areas at the North American domestic OEMs (GM, Ford and DaimlerChrysler) and the foreign domestic OEMs (Toyota, Honda and Nissan). This year, 308 suppliers - representing 52% of the OEMs' total annual buy - responded to the survey. Demographically, the supplier-respondents represent 35 of the Top 50 North American suppliers, 58 of the Top 100 and 69 of the Top 150 North American suppliers. The study culminates in the Working Relations Index (WRI) which is a quantitative ranking by suppliers of their working relations with each of the six OEMs. Article Source: http://www.articlealley.com/article_180775_31.html About the Author:
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