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Fri Apr 27, 2007 at 17:55:49 PM EDT
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I know there are other issues, like legacy costs, but none-the-less Toyota's management style is worth noting. Hat-tip to Rod Dreher.
Q: I remember a story related to me by a supplier company: They entered into a contract to supply axles for pickup trucks. It was the first contract his company had with Toyota. He said he was awarded the contract with no discussion of price. It was all based on whether his company's processes and quality were acceptable to Toyota. He was flabbergasted. Is that a common way Toyota does business? A: Toyota's thinking based on the Toyota Way is teamwork with suppliers. This teamwork is going to be a long-lasting relationship. Price is only one element. Trust is a more important element. The relationship is a sharing concept, and should always be win-win. Price is important, too. But trust is perhaps more so. This is an idea that American business schools have come to preach. IBM (IBM), General Electric (GE), and other companies talk about how important the mission of the company is. Toyota is only doing intelligently what the business schools are teaching.
http://www.businessw... |
| Slouching Toward Youngstown :: Why Toyota Is Winning |
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