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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.
Newman et al. (Sat,) studied this question.