Summery:

In 1980's Toyota and Honda set up manufacturing operation in north

america.They started joint ventures between japanese suppliers and american
companies. Later they selected local companies.If we compare the elements
of partnering model with those of honda's we found that these two
companies used different tools. Toyata and honda have built great supplier
relationship by following six dintinct steps.
First: They understand how supplier works.
Second: They turn supplier rivalry into opportunity.
Third: They supervise their vendors.
Fourth: They develop their suppliers technical capabilities.
Fifth: They share information intensivevely but selectively.

Sixth: They conduct joint improvement activities.

some of these steps support others.for example if manufacturer deploy
controls without creating a foundation of understanding that will lead to
gaming behaviour by supplier therefore we organized the sixth steps as a
supplier partnering hierarchy with one leading to the next.Toyota and Honda
have succeeded not because they use one or two of these elements but
because they use all six together as a system.These two companies set high
standards and expect their partner to rise to meet them.Toyota and Honda
clearly want to maximize profits but not at the expense of their suppliers.
Toyota and Honda also spark competition between vendors especially when
there is none but only with the support of their exisiting supplier.Because of
toyota tough love they would become more competative and more profitable
in the future.
In 1988 when toyota decided to make cars in kentucky it picked johnson
control to supply seats that seemed impossible first but with the help of
toyota's learn manufacturing experts the supplier restructured its shop
floor,slashed inventories and was able to make seats for toyota in the
existing space.That experience helped that american vendors understand that
it wasn't enough to deliver seats just in time it had to use system that would
continually reduce its costs and improve quality.