Fractal Design: Self-organizing Links in Supply Chain Management

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).