Optimization of supplier recovery for quality improvement

Crisis times may bring about many initiatives focused on short-term benefits that would make senior management happy. Supplier recovery is only one of those initiatives offering wide range of cost reduction opportunities and frequently implemented by industry leaders, especially automakers. However, some obvious long-term degrading effects of such initiatives may be underestimated for the sake of rapid financial gains in short-term the samples of which may be found in automobile industry. The present study issues optimization of such initiatives for quality improvement which is aimed to yield mutually beneficial outcomes, sustain long-term buyer-seller relationship/partnerships and diminish those degrading effects in question. The study is focused on a real business practice of a global manufacturer as a sample method of such an optimization and proposals for improvement of the method are included in discussion section.