The effort of Nissan to understand their suppliers’ developmental process is a commendable one and prone to producing mutual benefits and rewards. This is because very few manufacturers are broad-centered instead of being self-centred, and in doing so, it makes a statement of its commitment to remain with the supplier over a long term and not just for a short haul. When such a large company invests ample time, finance, and energy in its suppliers’ development and progress, it makes a large statement of its commitment to that supplier. The doubt of cutting ties with a supplier due to increasing competition is no more a question after the implementation of programs such as Cogent. The use of the Just-In-Time (JIT) technique in Nissan is targeted towards reduction in all possible interruptions in the production process starting from labour compliance, having preferred supplier companies, and achieving flexibility and teamwork. This is a phenomenal step forward towards the effectiveness of each and every collaborative step taken by the company with their suppliers. However, having preferred long term suppliers is a challenge because each supplier is governed with a varied set of impacting factors like taxes, working conditions, distance, subsidies, financial strength, capabilities, etc.
Any change and shift in any one of these is likely to have a devastating impact directly on the agreed terms between Nissan and their suppliers. Therefore, it is very important to consider all possible events, both foreseeable and perceptible, to take a step forward together. When the JIT system is implemented with the suppliers, the impact and results need to be recorded and measured in order to learn from failures and reattempt with a refined plan or rectification. In this way, it will provide a much larger outlook towards the future and both entities will be in a better position to control their actions and thus the results. Risks are reduced to a significant level as they are identified together and are perceived along with the provision of preventing its occurrence. When Nissan and the suppliers work together to identify the process, risks are natural to the identification process and when they are identified, it is also natural to prevent its occurrence by altering the process of development.