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Toyota and Honda also use the six step process of understanding how the suppliers work, sharing information, and work together to supervise and develop the suppliers while gaining joint improvements. Focusing on price reduction only does not help supplier/manufacturer relationships. Toyota does not believe in bullying its suppliers but instead acts like the supplier's parent. The biggest difference, I believe, is understanding how their suppliers work which leads to joint improvement activities. This shows the suppliers you understand how they do business and how it costs. Then the parent is able to help the supplier achieve more cost reduction by working together and then splitting the savings...
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