Hi,
Had a disturbing discussion with an automotive supply chain expert at a recent trade show. You may already know that I've spent many years in supply chain and production, and I was a little surprised about his view of Daimler-Chrysler. He ranked their supplier policies as amongst the worst in the business, and for the last several years their policy has been to buy the parts they want at the lowest possible cost, sourcing parts from Asia and other low cost areas rather than work with the well known high quality automotive suppliers. He blames their recent quality problems on their strategy which is to "know the cost of everything and the value of nothing" from their parts suppliers. Parts may be "genuine Mercedes" but pattern parts may well be better made...! Lexus, Ford and BMW are well ahead, and do pay more to get better quality parts.
Might explain some of the recent quality trends, disappointing really considering what we pay.
John
Had a disturbing discussion with an automotive supply chain expert at a recent trade show. You may already know that I've spent many years in supply chain and production, and I was a little surprised about his view of Daimler-Chrysler. He ranked their supplier policies as amongst the worst in the business, and for the last several years their policy has been to buy the parts they want at the lowest possible cost, sourcing parts from Asia and other low cost areas rather than work with the well known high quality automotive suppliers. He blames their recent quality problems on their strategy which is to "know the cost of everything and the value of nothing" from their parts suppliers. Parts may be "genuine Mercedes" but pattern parts may well be better made...! Lexus, Ford and BMW are well ahead, and do pay more to get better quality parts.
Might explain some of the recent quality trends, disappointing really considering what we pay.
John
