Clear causation between supplier relations and bottom line

Good supplier relationships can have a dramatic impact on an OEM's operating profit, but not everyone is getting the message. The latest North American Automotive - Tier 1 Supplier Working Relations Index Study from Planning Perspectives found that Ford, General Motors, FCA US and Nissan collectively would have earned US$2bn more in operating profit last year had their supplier relations improved as much as Toyota's and Honda's did during the 12 months. That figure alone should be enough to get management rethinking its strategic approach.