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Extending Lean Supplier Management
At this point, it should be clear that the application of lean tactics extends well beyond factory environs. Whether one analyzes the discipline from a manpower, machine or methodology perspective, the potential for applying tactics developed on the production floor to other areas of a business is huge. The combination of inherently complex supply chains with the trend toward outsourcing makes this point even more salient and offers boundless opportunity for the continued elimination of supply chain waste. Because most of the participants in a manufacturing-based supply chain provide a product or service to the manufacturer, the search for increased supply chain velocity should focus on those relationships. While this discussion has articulated many of the finer points of managing raw materials suppliers, it now turns to the quest for velocity via the refinement of other supply chain alliances.
A major postulate of this book is that logistics plays a transcendental role in global supply chain management. Given its pervasive involvement in both materials and distribution management, logistics can be viewed as the glue that holds the entire supply chain mosaic together. With offices and expertise in markets around the world, the inclusion of third-party logistics (3PL) companies in supply chain design is essential. From a tactical perspective, potential improvements in areas such as order management and documentation flow are plentiful and can be facilitated by the 3PL firm.
