In every manufacturing and
production business, the role of suppliers is always a crucial one. They are
the important ones, who provide required materials and supplies to manufacture
certain products, and if supplies are not available and disrupted due to any
given reasons, the manufacturing and production process will be badly affected,
and a firm may struggle to keep its supply and demand process on the right
track. That’s why it is important that a firm has good relations with their
suppliers, and both have good integrated operations to keep manufacturing
process running smoothly without any disruptions (Teller et al., 2016). In a competitive
business environment, where it is absolutely critical to remain on course with the
supply of products in time to the customers so that they can be sustained by
the organizations, otherwise they may look for other brands and firm, which are
providing similar kind of products. It shows that how critical supply chain
management process could be for the business organizations, and if process is
not handled well, and then it can have dire consequences affecting the whole profitability
of the business (Krause and Handfield, 1999)
In automotive industry, the role
of suppliers become even more crucial because they are responsible to provide
very specific manufacturing parts, and if one part is missing from the supply chain,
the whole process can be impacted, and eventually production may even stop. So,
for every automobile industry, it is important to develop good relationship and
communication with their suppliers so that required sources are provided in
time, and product is developed to provide to target customers. The disruption
in supply chain would ultimately affect the overall supply and demand process (Brandes, Brege and Brehmer, 2013). This is what was
faced by the Nissan, one of the leading automotive companies in the world. In
1990s, they were facing various issues in their supply chain, and things were
not going as well as they would have expected. So, there was a need to develop
a programme, which could make things better for their supply chain management,
so company started an initiative in this regard, and came up with a suppliers
co-development programme, and name given to this program was Cogent. Nissan
Company started this program with the coordination of their suppliers and
Cranfield University (Wyatt et al., 1997)
References of Supply chain management
Krause, D.R. and Handfield, R.B. (1999) Developing a World-class
Supply Base, illustrated Edition edition, Center for Advanced Purchasing
Studies.
Wyatt, C.M., Evans, S., Johnson, A.S. and Jukes, A.S. (1997)
'Co-development: The COGENT initiative', IMECHE SEMINAR PUBLICATION, 101-110.