A vast network of capable parts suppliers – who Honda considers its partners – makes being a self-sufficient North American vehicle producer possible. Honda builds its own engines, transmissions and major parts, such as the outside steel skin and instrument panels, at its plants in the United States. But its 624 North American suppliers (more than 540 of them in the U.S. and 162 in Ohio) make the remainder of the vehicles' 10,000 parts.

These supplier companies receive about $19.5 billion in revenue annually from Honda and employ more than 40,000 Ohioans. According to a 2004 Economic Impact Study, the total estimated employment impact in Ohio is more than 128,000 jobs. Learn more about the economic impact of the Honda Supply Team.

Clearly, Honda and its suppliers must work closely together to meet challenges and focus on providing customers with products that have exceptional quality and value. Simply put, Honda's current and future success depends on the success of its supply base. And while this focus is likely true of all manufacturers, the Honda approach to suppliers is different. The traditional approach of manufacturers is to negotiate with suppliers on price alone. Honda takes a different approach by focusing first on eliminating waste in manufacturing processes. By understanding how to make operations more efficient, Honda helps suppliers take cost out of their processes and become more competitive.

However, this fundamental difference in approach would not be possible if Honda did not also focus on another key difference - building a working partnership with suppliers.

Reducing costs sometimes means going to the supplier's plant floor and examining each step of its manufacturing operation. It sometimes means working directly with suppliers to re-engineer manufacturing processes and logistics. Few suppliers will let companies this far into the business if they think the information will be used to take advantage or get a better price from their competitors.

Honda suppliers have embraced this approach and view the relationship as a true partnership based on trust. In fact, Honda is consistently ranked at the top of manufacturer-supplier relationship studies because the company is intent on sharing the success and benefits with its suppliers and is committed to working to develop them even as it continues to challenge them to meet higher standards.

The total result is not only a highly effective supply chain, but a mutual partnership built on trust, respect and cooperation. This approach has helped Honda build strong, lasting partnerships with suppliers and service companies across Ohio. These partnerships have played a key role in ensuring the competitiveness and success of Honda and its suppliers for three decades.