Honda Motor Company Ltd.
How does Mr. Honda’s history with suppliers relate to Honda’s current supply management strategy? Honda’s current supply management strategy is consistent with Mr. Honda’s history. There three factors about Honda’s supply management strategy, focus on local market, emphasis on competition and reliable suppliers. According to the Honda’s export strategy of “Honda and U.S. – Japan Automotive Trade”(1997), it is clearly that Honda focuses on regional markets which contributes to developing more sales, strong research and better development. And their strategy of manufacturing the products where or near to where they are sold is the result of their being local strategy. Additionally, focus on local market benefits not only Honda but also the local government. Taking the US market as an example, on one hand, “Honda’s commitment to global trade and the positive benefits that result for U.S. jobs, suppliers, consumers and exports.” On the other hand, when the government benefits from Honda, it is easier for Honda to develop in the future. The other one is that Honda always emphasizes the competition of globalization. And during the intense competition, finding reliable suppliers to ensure and advance the quality of production is very important. Being globalization is the corollary goal if one company wants to make more benefit. And reliable suppliers are of great significance for company. This is the foundation of being on time as well as having good quality. Furthermore, Honda’s suppliers are able to be involved in the development process to give suggestion and have negotiation with Honda. In this way, Honda has access to know how to make it better and faster. Why is purchasing so important at Honda?
Purchasing is important to Honda because of its strategy to be globalization. As Honda is a transnational corporation, it is very important to know the different policy, culture and environment in different local places in order to producing...
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