End the practice of awarding business on the basis of price tag along. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. — Edwards Deming

Most American business people find it nearly impossible to understand Edwards Deming’s admonition to not buy on price alone. I learned from my father, who grew up in a predominantly Japanese neighborhood in Honolulu, that there was another approach: Do business with people you know and trust, and your total cost will be lowest.

This remains a difficult concept to understand if you’ve never seen it in action, so let me tell a story that illustrates the idea. Continue reading →