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New Study Reveals that Toyota is the Best Automotive Supplier to Work With

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【Summary】In the 17th annual North American supplier study by John Henke of Planning Perspectives, Toyota and Honda are two of the best automakers to work with, while Nissan brings up the rear.

Original Vineeth Joel Patel    May 26, 2017 8:30 AM PT
New Study Reveals that Toyota is the Best Automotive Supplier to Work With

To ensure that they're first to release the next-generation of automotive technology, automakers have entered into partnerships with one another. The collaborations have also spread out to include automakers and technology companies, including the one between Nvidia and Toyota, which took place earlier this month. Another major partnership that arose this month included the one between BMW and Intel. Unions between two companies are clearly the way forward, but what automakers are the best to work with? 

Japanese Automakers Are The Ones To Partner With

According to a report by Motor Trend, there are some clear winners when it comes to creating an automaker-supplier relationship. The outlet cites the 17th annual North American supplier study by John Henke of Planning Perspectives, which found that Toyota topped the list. Honda followed close behind in second place, while General Motors skyrocketed to third place. 

GM isn't the only American automaker to make the list, as Ford and Fiat Chrysler Automobiles ranked in at fourth and fifth respectively. Surprisingly, Nissan, as Motor Trend points out, is at the bottom of the list after three years of following a downward trend. Don't be alarmed if you noticed that various automakers are missing from the study, as it only covered the six largest automotive companies. 

The study, as the outlet reports, is based on a survey that's conducted annually, giving the industry an overview of which automaker is collaborating well with others and benefitting from its partnerships. Motor Trend claims that the study scores each automaker on 16 different criteria, including openness, trust, and the number of times an automaker requests last-minute changes. 

Using the answers, the study then gauges the level of communication, working relations, whether the supplier can make a profit on the contract, and if the automaker is beneficial or an obstacle, reports Motor Trend.

Why Cozying Up To Automotive Suppliers Is Important

"Every few years, an automaker will come up with some new program aimed at improving their supplier relations – but they rarely have a lasting effect," said Henke. "The reason is quite simple: Supplier relations start at the top, but must be driven down to the Buyers – and effectively reinforced – to get the Buyers to change their behavior with supplier salespeople. Such an effort must be part of the corporate cultures. Buyers will not change their behavior unless improving supplier relations is part of their performance measures." 

With the majority of automakers, tech companies, and suppliers all working on self-driving cars, automotive companies rely on suppliers for various things, including research and development, states Motor Trend. In terms of a self-driving future, suppliers supply the majority of research and development for battery cells, sensors, LiDAR, radar, cameras, and more. Being able to work with larger, more prominent suppliers gives automakers a leg up on the competition, which translates to more affordable components. 

With everyone looking into an autonomous future, automakers need a reliable source for automotive tech. Cozying up to suppliers is something that automakers need to do, as running short on supplies could lead to a loss in sales and falling behind. 

via: Motor Trend

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