Fractal Design: Self-organizing Links in Supply Chain Management

Abstract

The Japanese model of long-term collaborative supplier partnerships has attracted much attention in recent years from business researchers and practitioners alike (Womack et al., 1990; Dyer and Ouchi, 1993). Several American and European vehicle-makers have attempted to emulate this model, drastically reducing their supplier base and moving toward more collaborative relationships with their best suppliers (Nishiguchi, 1994; Helper and Sako, 1995; Dyer, 1996a). As a result, early involvement of suppliers in product development and solicitation of suppliers’ suggestions for cost reduction are rapidly becoming standard practices in the automotive industry and beyond, along with several other Japanese manufacturing practices (Womack and Jones, 1996).

The authors wish to thank Yaichi Aoshima, Jonathan Brookfield, Michael A. Cusumano, Takahiro Fujimoto, Susan Helper, Dany Jacobs, Ken Kusunoki, Jens Laage-Hellman, Tom Roehl, Mari Sako, Annique Un, Eleanor Westney, and Lin Xu for their valuable comments on the present and/or earlier versions of this paper, as well as the Japan Automobile Manufacturers’ Association, the Japan Auto Parts Industries’ Association, the Institute for International Economic Studies, the International Motor Vehicle Program at Massachusetts Institute of Technology, the Sasakawa Peace Foundation, Hitotsubashi University’s Institute for Innovation Research, and the Ministry of Education, Science, Sports and Culture for the various support received for our research. The usual disclaimer applies.