John W. Henke, Jr., Ph.D., a 1958 graduate of Notre Dame, says Ford, General Motors, FCA US and Nissan collectively would have earned $2 billion more in operating profit last year had their supplier relations improved as much as Toyota’s and Honda’s did during the year.
That’s one of the significant conclusions from Henke’s 15th annual North American Automotive/Tier 1 Supplier Working Relations Index® Study released by Birmingham, Mich.-based Planning Perspectives, Inc., that looks at the automakers’ supplier relations and how they impact OEM profits. This year, 435 suppliers participated.
The study is watched carefully in automakers’ boardrooms because an OEM’s supplier relations rating is highly correlated to the benefits that a supplier chooses to give an OEM – including which OEM is first to see a supplier’s newest technology, is provided a supplier’s best personnel for support, and gets their best pricing – all of which impacts an OEM’s competitiveness and operating profit.
For the past 25 years, Henke, who is CEO of Planning Perspectives (www.ppi1.com), and his team have specialized in studying and reporting on buyer and supplier relations in the automotive and 17 other industries. Henke is also a professor of marketing at Oakland University, Rochester, Mich., and a research fellow at the Center for Supply Chain Management at Rutgers University.
For more on Henke’s 2015 study, click here.
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Notre Dame Preparatory School and Marist Academy is a private, Catholic, independent, coeducational day school located in Oakland County. The school's upper division enrolls students in grades nine through twelve and has been named one of the nation's best 50 Catholic high schools (Acton Institute) four times since 2005. Notre Dame's middle and lower divisions enroll students in jr. kindergarten through grade eight. All three divisions are International Baccalaureate "World Schools." NDPMA is conducted by the Marist Fathers and Brothers and is accredited by the Independent Schools Association of the Central States and the North Central Association Commission on Accreditation and School Improvement. For more on Notre Dame Preparatory School and Marist Academy, visit the school's home page at www.ndpma.org.