Honda of America has a supplier development program that many envy because the company has an extensive 13-week program in which Honda employees spend up to four days a week at a supplier’s site and work on continuous improvement projects (2). In a poll conducted by Purchasing Magazine, only 53 percent of purchasing executives stated that their organization engaged in supplier development activities. Furthermore, very few companies have initiatives as extensive as Honda of America (3).
The Purchasing Magazine survey also revealed:
One in five companies surveyed occasionally contributed financial support for suppliers.
Only 14 percent place their own employees at the suppliers’ site.
Eleven percent of companies surveyed give suppliers the opportunity to study at the customer’s site.
Though 53 percent claim they pursue supplier development, only 11 percent have formal programs (4).