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Today's emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process. (T/F)

User DinhNguyen
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Final answer:

The statement is true; the quality emphasis in supplier relationships has indeed shifted from post-receipt defect detection to proactive prevention.

Step-by-step explanation:

The statement that today's emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process is true. This shift is exemplified by the adoption of the just-in-time delivery system, which was popularized by Japanese automakers in the 1980s. Under this system, parts are delivered on a daily basis, drastically reducing the need for warehousing and thus highlighting quality issues much more promptly. This change has forced suppliers to be located within a day's drive of the main assembly plants to ensure timely delivery. High-quality standards are crucial in this model since it minimizes the stockpile of components, making defect detection at the source imperative for a smooth supply chain operation.

It is evident that this approach leads to a competitive environment for sub-assembly plants, as they vie for contracts with main manufacturers. The necessity for suppliers to maintain high quality and low-cost production in some cases affects wages and employment conditions, often leveraging non-union labor, which can put downward pressure on wages and benefits.

User Ecton
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