Mitsubishi Motors Establishes New Suppliers Relationship

Dissolution of Kashiwa-Kai (Mitsubishi Motors cooperative suppliers organization) to end closed-shop relations with suppliers

Establishment of an open and transparent relationship structure with both domestic and international suppliers to assure more efficient communications and cooperation.

Mitsubishi Motors Corporation (MMC) today announced the dissolution of its cooperative suppliers organization Kashiwa-Kai and the start of a new relationship within a more efficient, global structure for handling communication between MMC and its suppliers.

Mitsubishi Motors had been studying the possibility to dissolve the Kashiwa-Kai and to establish a new kind of relationship with its suppliers for months. Today, Kashiwa-Kai decided to dissolve itself at its general meeting. MMC will take over the former function of the suppliers organization in directly providing its suppliers with information for their business activities with MMC in a faster, more efficient manner.

This change reflects the drastic need to respond to the strong challenges of the saturated domestic market, fierce global competition and the need to conform to ever-increasing safety and ecology requirements.

Chief Operating Officer Rolf Eckrodt said that he "appreciated that Kashiwa-Kai has played a great role in supporting MMC’s procurement activities in the past."

"These changes," Mr. Eckrodt said, "will strengthen our long-standing cooperative relationship with our suppliers by achieving even fuller collaboration, based on the spirit of our COSMOS concept, which emphasizes close, cooperative relationships that are fair and focused on results."

The new communication structure will enable MMC to focus much more sharply on bringing suppliers into line with MMC’s needs and future strategies through three specific actions:

  • Annual suppliers’ meetings to explain procurement strategies and implementation activities
  • To recognize quality/VE (Valuable Engineering) awards
  • To provide information about MMC’s new car strategies
  • Smaller topic-specific meetings to exchange information with suppliers
  • Establishment of an exclusive internet homepage to provide suppliers with extensive up-dated information
Published 7 June 2002 Melanie Carter

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