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in Japan who are senior executives
and many in the U.S. I ask them,
“How do you balance your work-
load?” The Japanese typically will
tell you they spend 50 to 75 percent
of their time with the supply base
because they see it as an extension
of their business. And yet, you talk
with some of my U.S. peers and
they don’t go out to (visit) their
suppliers, because they don’t see it
as an extension of their business.
My goal is really to develop our
suppliers to be part of the team,
the big picture team. I can actually
tell my customers that I know there
is not going to be disruption in the
supply chain for them because I have
already committed and I have already
received the same commitment out of
my suppliers.
QHow do you persuade suppliers and customers that are new to this
approach?
ATruthfully, in North America, this is a very difficult discussion.
I do have these discussions all the
time. I will just say that in my supply
base, most of them are very reluctant.
They are always protecting themselves
because in their experience, other customers have only worried about one
thing—short-term financials. So it is
a very difficult discussion, but this
change has to happen. It has to be
initiated by me as a customer. So I
have to take the first step by showing
that I’m going to honor what I say to
them. And I have had success doing
that. Trust starts to be developed once
they see that I am willing to take the
first step and I’m not going to fire
them over some small discrepancy and
that I am willing to work with them to
improve.
QSo, maybe that first time they mess up and they are honest with you,
you don’t fire them but say, “OK, let’s
fix it …”
AExactly. It’s that step. I’ve had the opportunity in my latest role
to start working with our suppliers,
and I’ve offered to go out to see their
facilities and learn more about their
operations. I feel that it really helps my
suppliers to see that I understand what
issues and opportunities they’re facing and then sit down with them and
develop this “common goal” approach.
We’ve had some really good successes.
I can also share that a couple of suppliers don’t believe in this. I understand their initial position, but the
long-term success of our business is
going to be based on that fundamental
collaboration and trusting each other. I
believe the long-term approach is best
to develop strategic partnerships in
business.
