May 13 2014
“In a survey of suppliers on their working relationships with the six major U.S. auto makers – Toyota, Honda, Nissan, Ford, Chrysler and GM – GM scored the worst. But of course they did. They are GM and we can always count on such results from them. […] Toyota scored highest with a ranking of 318, followed by Honda at 295, Nissan at 273, Ford at 267, Chrysler at 245, with GM trotting along behind the rest with an embarrassing 244.”
While I am not overly surprised at the outcome, I am concerned about the analysis method. The scores are weighted counts of subjective assessments, with people being asked to rate, for example, the “Supplier-Company overall working relationship” or “Suppliers’ opportunity to make acceptable returns over the long term.”
This is not exactly like the length of a rod after cutting or the sales of Model X last month. There is no objective yardstick, and two individuals might rate the same company behavior differently.
It is not overly difficult to think of more objective metrics, such as, for example, the “divorce rate” within a supplier network. What is the rate at which existing suppliers disappear from the network and others come in? The friction within a given Supplier-Customer relationship could be assessed from the number of incidents like the customer paying late or the supplier missing deliveries…
Such data is more challenging to collect, but supports more solid inferences than opinions.
See on www.idatix.com