Case ID: CMR102
Solution ID: 17340

Strategic Supplier Segmentation The Next Best Practice in Supply Chain Management Case Solution

Case Solution

This study of 453 supplier-car maker associations within the US, Japan, and Korea explores the extent that car manufacturers manage their "arm's-length" and "partner" providers in a different way. The findings indicate that U.S. car manufacturers have in the past handled nearly all their providers utilizing an arm's-length model, Korean car manufacturers have handled providers mainly as partners, and Japanese car manufacturers have somewhat different associations with providers with respect to the character (i.e., amount of resource specificity and cost) from the component. Only Japanese car manufacturers have smartly segmented providers in a way regarding realize most of the advantages of both arm's-length along with the partner models. Firms should think smartly about supplier management and cannot possess a "one-size fits-all" technique for supplier management.

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