When selecting suppliers, the characteristics of the components needed can play

Question

When selecting suppliers, the characteristics of the components needed can play a significant role. Two of these characteristics are profit impact and supply risk, as discussed in Kraljic’s supply matrix. In this problem, we consider the example of automobile transmission systems under this framework.

a) Why do transmission systems have a relatively high profit impact? Contrast this with one or two examples of items needed by an automobile manufacturer that have low profit impact.

b) Why do transmission systems have a relatively high supply risk? Contrast this with one or two examples of items needed by an automobile manufacturer that have low supply risk.

c) Toyota, for example, invests substantial effort into building good relationships with its suppliers. Why is it important that an automobile manufacturer maintains good relationships with suppliers of transmission systems? Support your reasoning with your answers from items (a) and (b).

Explanation / Answer

Q )  Toyota, for example, invests substantial effort into building good relationships with its suppliers. Why is it important that an automobile manufacturer maintains good relationships with suppliers of transmission systems?

A ) The company Toyota started as a supply chain base system with the military base camps.It started a method that is first step in the industry .Suplly-chain Management." Kanban" and " JIT "are invented by the company Toyota were best examples in the supply chain market.This ensures the customer satisfactions levels with its automobiles.The methodologies the comany uses to maintain the standardds in the market is by maintaining the good supplier management relations.Undestand their requrements and design a product that is benficial both to th supplier and the company.

Suppliers are the important key point for any automobile industry.Since they take your product round the globe.Manufacturing sucha big mechanism automobile is weighted in the half of the scale and the weights thats match xactly to keep the business running smooth , are the weigths of the suppliers and their contracts.

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