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U.S. managers know that the formidable success of Japanese automakers stems to a great extent from their close relationships with suppliers. Toyota, Nissan, and others, working closely with their respective lean- production networks of parts suppliers, produce high-quality vehicle models quickly and inexpensively; competitors rooted in traditional mass- production operations, which have typically compelled manufacturers to keep suppliers at arm''s length, are left struggling to catch up. Most competitors know that a key factor in the success of Japanese network relationships is the practice of dedicating supplier assets to the customer. Nevertheless, many U.S. managers still do not fully appreciate just how profitable the practice of using dedicated assets can be. A two- year study that Jeffrey Dyer conducted of production networks in the auto industry strongly reinforces the contention that dedicated assets provide Japanese manufacturers with substantial competitive advantages. U.S. managers who face closing plants, building plants, or changing suppliers have much to learn from their Japanese competitors.