A Case Study of NUMMI and Its Suppliers

The arrival of the automotive transplants from Japan over the last decade has brought about a different method of dealing with suppliers. Long known for close working relationships with suppliers, the Japanese transplants brought a new focus on supplier relations. After developing its own “corporate culture,” the joint venture between General Motors and Toyota, named New United Motors Manufacturing Inc. (NUMMI), embarked on a program of supplier development. This program encompasses effective communications with the supplier as well as a sharing of information which is essential to supplier performance. The NUMMI approach may have significant implications for supplier relationships throughout American industry.