Empirical Study on Capability Assessment of Asian Local Tier 2 Parts Suppliers

Abstract

In the previous studies, the existence or lack of product design capability was often the base for evaluation of parts suppliers. In this type of framework, most of the Asian local tier 2 suppliers are provided with the mere low rating. Meanwhile, we proposed the three evaluation axes composed of the capability of the product design and production process design as well as the domain design. This study is the evaluation of Asian local tier 2 suppliers based on the new framework. The analysis makes sense as clearly shown in the results of our case study. Firstly, we have observed the synergy effects between product design and production process design, and consequently verified the development path of suppliers within the stage of supplied drawing. Secondly, we have also clarified a discrepancy between Japanese, Thai and Chinese suppliers in terms of capability building. More specifically, Japanese suppliers relatively strengthen product design and production process design meanwhile Thai suppliers seem to more focus on domain design. As for Chinese suppliers, they relatively stay at the initial stage of development path since they can get increased sales by filling orders for the existing customers that enjoy sustained growth of domestic car market. Over all, we succeed to present two unique evolution paths of “manufacturing oriented” and “domain diversification oriented” for the Asian local tier 2 suppliers through our study.