Honda is suppliers' favorite, study shows

BY JEWEL GOPWANIFREE PRESS BUSINESS WRITER

A study evaluating the relationships between auto suppliers and six major automakers shows that Honda Motor Co. has the best rapport with its parts makers, and that Ford Motor Co. has made strides to improve its relationship with suppliers.

In its eighth annual study, Birmingham-based consulting firm Planning Perspectives Inc. surveyed 231 suppliers between February and April, asking them questions such as how much they trust their customers and how often customers make last-minute changes.

"It really comes down to individuals believing that having good relations is worthwhile," said John Henke, chief executive officer of Planning Perspectives.

The survey comes as automakers and suppliers suffer from low cash reserves as a result of falling auto sales -- a consequence of a national recession that has slashed revenue across the industry.

While Honda took the top spot from Toyota Motor Co., scores for the two declined.
Ford managed to take fourth place in the study -- behind Nissan Motor Co.

Chrysler LLC was last for the second year in a row.

Ford's scores show meaningful progress in communicating with suppliers and helping them improve quality.

The higher scores come as Ford continues to cut its supply base from more than 3,000 in late 2005 to its goal of having 750 key suppliers. The company is trying to concentrate its purchases among fewer suppliers so those parts makers have enough business to be profitable.

"The business is about profitable growth for all," said Tony Brown, Ford's purchasing chief, in an interview last week. "In the end, we need to be the customer of choice for our suppliers. They need to have a healthy business in order for it to work for them."

Source;
http://www.freep.com/article/20090525/BUSINESS01/905250431