The Quantum Leap: Next Generation

Supplier Cooperation

Supplier relationships in Demand Flow manufacturing don't involve pressuring the supplier or trying to increase the supplier's costs. The objective is not to force the supplier to build a plant near the manufacturer's operation or have the supplier store the manufacturer's inventory. The new relationship with the supplier starts very slowly. The Demand Flow manufacturer must first address its own internal process and achieve greater than 90 percent internal linearity before pulling suppliers directly into the process.

One best practice is to hold a "supplier day" at the Demand Flow manufacturer's plant. The manufacturer can brief suppliers on Demand Flow processes and strategies. The companies can exchange data, implementation plans, and schedules. The manufacturer can also emphasize that supplier conversion to Demand Flow manufacturing is preferred but not mandatory. Many Demand Flow manufacturers have gained excellent support from their suppliers, and the suppliers have improved their business performance and profitability via a mutual strategy of pursuing DFT implementation in their facilities.

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Category: Electrical and Electromechanical Assembly Services
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