 Reduce the Supply BaseDevelop Strategic Long-Term PartnersManage Suppliers with Commodity TeamsCertify SuppliersConnect to Suppliers with Internet Technologies |
Lean companies
- Develop supplier partners, especially in the commodities key to their company's growth and future success
- Ensure that there is a close match in technology, growth plans, and corporate culture to have an open and successful relationship
- Plan and execute for a long-term relationship
- Exchange much more data than traditional relationships
Traditional companies
- Do not develop long-term relationships, but change to another supplier at the first disagreement on price or delivery
- Do not discuss strategic issues like technology roadmaps, capacity planning, plant locations, major quality initiatives, redesigning for cost reduction
- Release only that confidential information required for the immediate purchase
- Do not try to understand the motivations and aspirations of the supplier nor its needs to make a profit to grow and continue as a viable supplier
Benefits of Lean
- Permits frank discussions at all levels so that you understand the technical, cost, and quality issues of the supplier's product, which after all, becomes a part of your product
- Allows frank discussion of growth and capacity planning
- Allows frank discussion of quality and reliability improvement plans and exchange of very detailed product failure data (Ford/Firestone example?)
- Allows technology discussions detailed enough to produce a better solution for both companies than could result from an arms length relationship
- Allows for exchange of detailed cost data which can reduce duplication of effort and produce savings to be shared