1. Preliminary Questions Why should Honda devote so much time and resources to supplier development? Which suppliers to select? Nature of BP (philosophy, goals, and strategy) What are the terms of the deal?

2. Lessons for Customers Structure the Learning Process Start simple, keep it concrete Aim for early reliable success Model the desired behavior Choosing Suppliers Make sure they have the technical, managerial resources to absorb learning Weigh benefits and liabilities of small vs. large suppliers Tailor activities to support the supplier’s identity

3. Lessons for Customers (continued) Promote self-reliance as quickly as possible Keep learning and monitoring functions separate initially, but can blend them later on Don’t worry about competitors getting a “free-ride” from your development activities Schedule BP activities so they don’t interfere with demands made by other customers