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Management article
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Reference no. SMR3515
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 1993
Length: 9 pages

Abstract

To the extent that buyer-supplier relationships can be co-operative, value can be created for both customers and vendors. Regrettably, the traditional behavior of some industries, particularly the US automotive industry, often precludes co-operation. The authors describe one successful case - the experiences of ABB and the Ford Motor Company during the design and construction of a $300 million facility. The authors explain the key factors that led to ABB''s and Ford''s success and how value-adding co-operation between buyers and suppliers can be fostered.

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Abstract

To the extent that buyer-supplier relationships can be co-operative, value can be created for both customers and vendors. Regrettably, the traditional behavior of some industries, particularly the US automotive industry, often precludes co-operation. The authors describe one successful case - the experiences of ABB and the Ford Motor Company during the design and construction of a $300 million facility. The authors explain the key factors that led to ABB''s and Ford''s success and how value-adding co-operation between buyers and suppliers can be fostered.

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