This is an AArete Profitability Improvement insight
In the world of business, the term “Keiretsu” refers to a form of corporate organization that was popularized in Japan during the post-war era. In recent years, however, the concept of Keiretsu has been rediscovered by scholars and analysts who are interested in exploring its potential application in today’s globalized economy. This renewed interest in Keiretsu is driven in part by the recognition that the traditional model of Western-style corporations has some limitations, particularly in terms of fostering long-term relationships between firms and promoting collaboration.
Specific to procurement, the 2023 supplier relationship needs to change, and teams can learn from specific aspects of Keiretsu to deliver a competitive advantage in their approach to supplier and cost management.