2.  Trust
 Quality
 Commitment
 Satisfaction
 Innovation & Development
 Information Exchange
 Interdependence
 Social support, and finally
 Cost reduction

3.  Toyota – Corporation
 General Motors – Armed length negotiations with primary
aim to reduce costs
 Microsoft – Hegemony & monopoly
 Hong kong container terminal – Market coverage by
reducing the prices
 Hollywood motion picture industry – Short term commitment
& contracts based on individual projects
 Prato wool textile industry – Maintain coordination with the
suppliers to maintain design creativity & market trend
 Airbus – Outsourcing in multiple partners
 Acer – Conflict of interest

4. • Toyota Supplier Support centre (for
suppliers to learn core concepts of
Toyota production)
• Supplier Association in 1943 (to enhance
mutual friendship & exchange
information)
• Most suppliers were situated at a radius
of 35 miles from Toyota technical centre
• Main pre-requisites – Quality, Reliability &
commitment to cost reduction

5.  Increased Emphasis on SCM to Optimize
operations
 Increased dependability on online
transactions, purchases and sales
 Outsourcing in Manufacturing and Service
sectors
 Focus on true supply chain partners instead
of diversified and large no. of SCPs in an
integrated supply chain
 Lower costs as a result of online
transactions, e.g. Online Auctions

6.  Increase use of SCM
 Increase use of online communication in
purchasing
 Increase outsourcing in manufacturing &
servicing factors
 Profit/ quality pressures on companies
 Desired to minimize inventory
 Increase globalization & competition
 Globalisation and foreign outsourcing
responsible for profit pressure.
 Profit and sustainability pressure casing
companies to rethink over the Buyer-
Supplier Relationships.