Network keiretsu

Japanese keiretsu are the most widely known network structures. However, the European, or to be more precise, the Italian example confirms dependence on social capital when creating stable and competitive supply chains. Italian regions are often described as perfect examples of network systems they are territorial units that include a multitude of small and medium-sized enterprises that operate according to the principles of both solidarity and competition, and which may, thanks to this, achieve a competitive edge comparable to that of large companies. ... 

A LOOK AT FUTURE STATE SUPPLY CHAIN MODELING -THE NETWORK KEIRETSU... 

As we move to a futuristic documentation, one reminder is in order. Network participation requires having an internal house that is prepared for the kind of technical collaboration that will be expected from the keiretsu partners. That means the people inside the firm must be ready to participate on an equal footing with the technology being applied through the network connectivity. In other words, they must have immediate access to vital information pertaining to their part of the processing so they can help internal and external customers. 

Supplier networks the development of supplier associations, and the Japanese equivalent, keiretsu. 

The supply chain keiretsu is a network in which activities are organised by a lead hrm. The typical supplier networks of large automobile and electronics hrms are managed and led by the major assemblers, as shown in Figure 9.6. 

Supplier associations bring suppliers to an OEM or tier 1 supplier together for the purpose of coordination and development. They also aim to improve the quality and frequency of communications between members. In practice, association companies benchmark each other, and formulate improvement projects aimed at increasing the competitiveness of the overall network. Keiretsu is the term used to describe the supplier association in Japan. Here, the additional characteristics are that ownership and control of the network are based on equity exchanges between members. Keiretsu stmctures have attracted recent criticism because of their relative inflexibility and high capital cost. 

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