Re:Why is it hard to buy things that work well?
by aidenn0 on Monday March 14, 2022 @11:34PM
(#30681400)
I've never worked in the automotive industry, but I've worked adjacent to it occasionally.
The amount of effort put into ensuring that suppliers do what they need to do and do it well is huge. Companies always have two (or more) suppliers and if you keep only to the letter of the contract, you get cut.
They can afford to put so much effort into managing suppliers because volumes are large and margins are low.
There are also cultural issues at play; he makes the point that things that are inevitable in one culture are unthinkable in another and different industries have different cultures
The amount of effort put into ensuring that suppliers do what they need to do and do it well is huge. Companies always have two (or more) suppliers and if you keep only to the letter of the contract, you get cut.
They can afford to put so much effort into managing suppliers because volumes are large and margins are low.
There are also cultural issues at play; he makes the point that things that are inevitable in one culture are unthinkable in another and different industries have different cultures