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Journalism of Courage
NEW DELHI, FEB 21: Sony India Ltd has warned its vendors that it will shift sourcing of components to other countries such as China if they failed to achieve high quality standards. In what could be interpreted as a veiled threat to its 75 vendors in the country, the Japanese electronics giant said orders would be placed with them in future only if Sony8217;s global quality standards are achieved.
At a suppliers meet here, Sony Corporation senior vice president Yasumasa Mizushima stated: 8220;If you do not supply quality parts, procurement would be shifted to China or Taiwan. If, however, you provide good quality, then you will get an opportunity to export to Sony8217;s other manufacturing operations.8221; Mizushima added that the vendors would, in addition to maintaining quality, have to provide the parts and components at a reasonable prices and within the right time. Sony India general manager for procurement K Tsuruoka said the company was keen to set up an international procurement office in India. However, thatwould be subject to availability of parts and components benchmarked with Sony8217;s worldwide standard. 8220;We are not saying we are happy with the quality,8221; Tsuruoka said. He felt that there was big potential for stabilising quality and thereby achieve cost improvement. Tsuruoka proposes to introduce competition among suppliers to improve quality and delivery time during the financial year 1998-99.
