How Honda negotiates

Here's how Honda works with suppliers, as reported by Strategy+Business magazine in an excellent article titled Win-Win Sourcing.

"At Honda, during meetings with suppliers, the executives write their proposed actions and agreements on a whiteboard. When all the items have been discussed, the meeting is over. The contents of the whiteboard are then typed up and two copies are printed, the supplier and the automaker sign them, and the contract is complete...

"... This is one of the many ways in which far-reaching manufacturers like Honda and Toyota rewrite the conventional rules of procurement.

"... The two sides, instead of being at odds, collaborate openly on lowering costs and raising overall performance, with the expectation that this mutuality will continue over many years, benefiting both companies."

Tags: Honda, supply chain, procurement, best practices

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