Study: Suppliers, automakers must consult early

By Chaz Osburn, Automotive News / August 30, 2004

DETROIT – It’s no secret that relations between suppliers and automakers are strained. But there are solutions.

A study by A.T. Kearney Inc. concludes that involving suppliers early in a vehicle’s development – a common practice with the Japan-based automakers – is one way to improve relations.

Automakers also should work with suppliers on cost reductions during the design phase. And they should reward supplier innovation, the consulting firm says.

Kearney surveyed 85 automaker and Tier…

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