What has been the influence of Japan on supply chain management? In your answer, discuss the concepts of industrial clustering and quality

What will be an ideal response?

Japanese keiretsus are groups of independent companies that work together to manage the flow of goods and services along the entire value chain. Toyota's highly coordinated supplier network is among the most successful and well known of the Japanese keiretsus and a good example of industrial clustering. It borders on vertical integration, because parts suppliers tend to set up shop close to Toyota's assembly operations, and Toyota usually has an ownership interest in them. The Japanese approach to quality is total quality management (TQM), a process that stresses three principles: customer satisfaction, continuous improvement, and employee involvement. Its goal is to eliminate all defects. TQM often focuses on benchmarking world-class standards, product and service design, process design, and purchasing. Executives who have adopted the zero-defects philosophy of TQM claim that long-run production costs decline as defects decline. The continuous improvement process is also known as kaizen, which means identifying problems and enlisting employees at all levels to help eliminate problems. The key is to make continuous improvement a part of every employee's daily work.