0202

Problem

Honda of America relies on 400 suppliers in North America to provide more than 60 percent of the parts and materials for the Accord. What strategies could a business marketer follow in becoming a new supplier to Honda? What criteria would Honda consider in evaluating suppliers?

Step-by-step solution

Show all steps

Step 1/3

Supply chain management explains how efficiently a firm source, procure, produce, and logistics the raw materials to the end customers. It showcases the list of activities that a firm may go through to deliver the products to the customers.

Step 2/3

In this context, to qualify as an effective supplier for H, the following strategies need to be considered. First of all, it is very important to establish a healthy relationship with company H and its purchase team. The purchasing team should find the new supplier trustworthy. Secondly, the new supplier should keep himself capable of delivering materials uninterruptedly. A continuous flow of materials, supplies, and services is required. Thirdly, the new supplier should have a good inventory management system, and also the materials should have good quality. The cost should be minimum without any compromise on quality. Further, the new supplier should be active in the new product development process. These are the things that the new supplier should take care of.

Step 3/3

H can use the following criteria to measure the viability and reliability of the new supplier. Company H should understand the total cost of the products that the new supplier provides. The cost should be correlated and compared together with the factors like transportation, material managing, quality, reliability, and value creation. The supplier should provide uninterrupted materials for the firm and the materials that are sold should be of premium quality. They should be an easy return and refund policy if the material is not satisfactory for company H. Company H will also measure if the suppliers are capable of providing additional materials on demand. Then, the traceability of the materials is also considered to ensure ethical purchasing. The overall cost should be low, and the value addition should be high once getting into a contract with suppliers. These are the criteria that company H may consider while selecting a supplier.