Canon Inc., is one of the most famous precision appliance makers and originated in Ohta and Shinagawa, in the Southern District of Tokyo. As coordinator of the supply chain of middle sized and small businesses, Canon has the two different categories for coordinating the supply chain.
The first is the prototype-making supply chain, which consists of middle sized and small businesses with specialized technical skills, located in Ohta and Shinagawa. Canon and it's suppliers are in direct, face-to-face contact, sharing product development information ; in a none rigid, flexible relationship. Canon showed high performance in the product development competition by utilizing the prototype-making supply chain, which makes it possible to shorten the lead time of the product development and therefore enabling it to manufacture many new models.
The second is the mass production supply chain. Suppliers, mainly located in Ibaraki and Chiba Prefecture, endeavor to maintain high quality control, therefore reducing cost and frequent deliveries.
Finally, I try to exemplify the effectiveness of “Flexible Specialization” (M. J. Piore and C. F. Sable) in the prototype-making supply chain of Canon.
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