Japanese automakers, US suppliers and Supply Chain Superiority

The key strategy that Japanese transplants are using in the US is extensive collaboration and information sharing on the innovative manufacturing-management practices and technologies with US suppliers; the key production concept is lean manufacturing. Lean manufacturing is a system of production that focuses on delivering the highest quality product at the lowest cost. It can be also seen as a value stream that consists of all the steps needed to convert raw material into desired products. The goal is to make production process as lean as possible by minimizing the waste that occurs during different steps of production. JIT is just part of the picture, a necessary but not sufficient condition for a lean production process.
Japanese manufacturers in the US work close with their suppliers to develop lean capabilities. They emphasize long term business relationships with a small number of suppliers and have invested significant time and capital in developing them. The results on supplie...