"Diffusion and Changes of Automobile Parts Procurement Practices- A Report on a Questionnaire Survey for Japanese First-tier Parts Suppliers -"(in Japanese)

This paper summarizes a questionnaire survey conducted in the first half of 1999 as to historical developments and recent trends of parts transaction practices, component design architecture, inter-firm knowledge transfer, and competitive performance. 153 Japanese first-tier parts suppliers responded to our questionnaire. As for the recent trend, the survey revealed that there were three main trends regarding to parts design architecture: (1) component commonality across product variations and other design rationalization for cost reduction; (2) multiplication of component functions; (3) increased interdependence (coordination difficulty) among component designs, both structurally and functionally. In business practices and transactions, the survey identified three main directions: (i) intensifying competition among suppliers (The survey also indicated significant progress for most of the competitive performance such as cost and productivity); (ii) deeper involvement in product development and more intense inter-firm coordination; (iii) rapid diffusion of three-dimensional computer-aided design and advanced computer-aided engineering. Thus, contrary to the popular scenario of component modularization and module outsourcing that news media and consultants have advocated throughout the late 1990s, the real trends indicate increased integration and coordination among components and suppliers, particularly in the field of product development. What the survey reveals instead is the suppliers' tenacious efforts to overcome recessions and unfavorable exchange rate. As for historical evolution of supplier management practices, we have identified accelerated patterns of diffusion of information technologies and transaction systems in recent years, whereas it took longer time to diffuse Total Quality Control and Kanban practices to the first-tier suppliers in the past. The survey also indicated that the suppliers tend to appreciate the automobile assemblers' know-how on inter-component coordination.