Squaring lean supply with supply chain management

1.International Motor Vehicle Programme, MIT, Cambridge, MA, 1986‐1990. This research is reported in [2]. 2Womack, J.P., Jones D.T. and Roos, D., The Machine that Changed the World, Rawson Associates, New York, NY, 1990. 3.Eleven of the 55 researchers involved in the project were engaged on research in this area. In addition, later activities on the central benchmarking work incorporated supply issues, from the assembler’s point of view. Several of the industrial sponsors of this research were component manufacturers. 4.Krafcik, J.F., “Triumph of the lean production system”, Sloan Management Review, Autumn 1988, pp. 41‐52. 5.Helper, S.R., “How much has really changed between US automakers and their suppliers?”, Sloan Management Review, Summer 1991, pp. 15‐28. 6.Lamming, R.C., Beyond Partnership: Strategies for Innovation and Lean Supply, Prentice‐Hall, Hemel Hempstead, 1993. 7.Nishiguchi, T., Strategic Industrial Sourcing: The Japanese Advantage, Oxford University Press, New York, NY, 1993. 8.This is discussed at length in Lamming[6] and by Clark and Fujimoto[9]. 9.Clark, K.B. and Fujimoto, T., Product Development Performance, Harvard Business School Press, Boston, MA, 1991. 10.The term“supply management” is used in the sense proposed in Kraljic[11] as a replacement for less satisfying terms such as “purchasing” or “procurement” (with too much emphasis on the act of spending money) and “supply chain management” (an incomplete metaphor ‐ see New[12]). 11.Kraljic, P., “Purchasing must become supply management”, Harvard Business Review, September/October 1983, pp. 109‐17. 12.New, S.J., “Supply chains ‐ some doubts”, Proceedings of the 3rd International IPSERA Conference, University of Glamorgan, Wales, 1994. 13.Tse, K.K., Marks & Spencer: Anatomy of Britain’s Most Efficiently Managed Company, Pergamon Press, Oxford, 1985, p. 92. 14.This term was developed by Lamming[6]. 15.Ramsay, J., “Purchasing power”, European Journal of Purchasing and Supply Management, Vol. 1 No. 3, 1995, pp. 125‐38. 16.Burns, T. and Stalker, G., The Management of Innovation, Tavistock, London, 1961. 17.Houlihan, J., “Supply chain management”, Proceedings of the 19th International Technical Conference of the British Production and Inventory Control Society, 1984, pp. 101‐10. 18.Forrester, J.W., Industrial Dynamics, MIT Press, Cambridge, MA, 1961. 19.Christopher, M., Logistics and Supply Chain Management: Strategies for Reducing Costs and Improving Services, Pitman, London, 1992, p. 13. 20.Farmer, D.H. and Ploos van Amstel, R., Effective Pipeline Management: How to Manage Integrated Logistics, Gower, Aldershot, 1991. This is worthy of note not only because it was derived by some of the leading thinkers in the area, but also because it raises the question of key influences in the flow. 21.The original work in Coase[22] provides the starting point for discussions on inter‐firm relationships, largely developed by the equally important work of Williamson[23]. The organizational context is developed further by Van de Ven et al.[24]. These three sources led to the work of the so‐called “Industrial Marketing and Purchasing” group summarized well in Ford[25]. 22.Coase, R.H., “The nature of the firm”, Economica, Vol. 4, 1937, pp. 386‐405. 23Williamson, O.E., Markets and Hierarchies, Free Press, New York, NY, 1975. 24.Van de Ven, A.H., Emmit, D.C. and Koenig, R., “Frameworks for inter‐organizational analysis”, in Negandhi, A.R. (Ed.), Interorganizational Theory, Kent State University Press, Kent, OH, 1975. 25.Ford, I.D. (Ed.), Understanding Business Markets: Interaction, Relationships, Networks, Academic Press, London, 1990. 26.Ring, P.S. and Van de Ven, A.H., “Structuring co‐operative relationships between organizations”, Strategic Management Journal, Vol. 13, 1992, pp. 483‐98. 27.Kanter, R.M., “Collaborative advantage: the art of alliances”, Harvard Business Review, July‐August 1994, pp. 96‐108. 28.Macbeth, D.K. and Ferguson, N., Partnership Sourcing: An Integrated Supply Chain Approach, Pitman, Financial Times, London, 1994. 29. Partnership Sourcing Ltd, Partnership Sourcing, CBI, London, 1991. 30.Partnership Sourcing Ltd, Making Partnership Sourcing Happen, CBI, London, 1992. 31.Partnership Sourcing Ltd, Partnership Sourcing in the Service Sector, CBI, London, 1993. 32.Roy, R. and Whelan, R., “Successful recycling through value chain collaboration”, Long Range Planning, Vol. 25 No. 4, 1992. 33.Griffiths, J. and Whitehouse, J., “The Bisons project”, European Journal of Purchasing and Supply Management, Vol. 1 No. 2, 1994, pp. 107‐13. 34.Sako, M., Lamming, R.C. and Helper, S.M., “Supplier relations in the UK car industry: good news ‐ bad news”, European Journal of Purchasing and Supply Management, Vol. 2 No. 1, 1995. 35.Ramsay, J., “The forgotten majority ‐ academia and the small buyer”, Proceedings of the 3rd International Conference of the IPSERA, University of Glamorgan, 1994. 36.Lamming, R.C. and Oggero, D., “Purchasing and supply relationship management between small customers and their larger suppliers (SCuLS)”, Proceedings of the 4th International Conference of IPSERA, University of Birmingham, 1995. 37.The notion of efficient consumer response appears to have little depth to it, consisting, in the literature, mainly of a series of checklists and generalized good intentions (i.e. with regard to customer service). It is, nevertheless, being developed and explored and may give way to some deeper concept regarding interaction of customers and suppliers in supply chains (see [38‐40]). 38.Kurt Salmon Associates, Efficient Consumer Response: Enhancing Consumer Value in the Grocery Industry, London, January 1993. 39.Cleveland Consulting Associates, Continuous Replenishment ‐ An ECR Best Practices Report, Cleveland, December 1994. 40.Partch, K., “ECR ’93: playing the consumer card in supply chain management”, Supermarket Business, May 1993.. 41.Scott Morton, M.S. (Ed.), The Corporation of the 1990s: Information Technology and Organizational Transformation, Oxford University Press, New York, NY, 1991, for a discussion on the opportunities for business network redesign, business scope redefinition, etc. offered by advanced approaches to information technology. 42.The phrase is attributed to H. Gordon Selfridge, American founder of the British department stores which bear his name[43]. 43.Rees, N., Dictionary of Phrase and Allusion, Bloomsbury, London, 1991. 44.This is akin to the notion of the gene as a long‐term survivor (as proposed by Dawkins[45]). The surviving entity in this model ‐ the gene ‐ a “uses” bodies in which it exists, to ensure its survival. In the commercial version, the value that reaches the consumer may be seen to use the business organizations through which it passes. In order to survive, the value must choose efficient organizations. 45.Dawkins, R., The Selfish Gene, Oxford University Press, Oxford, 1976. 46.In a study by Sako et al.[34] over half of all automotive components suppliers in the USA, nearly a half (46 per cent) in Europe, and just over a third of all suppliers in Japan agreed with the statement: “JIT only transfers inventory responsibility from customers to suppliers”. In both the USA and Japan, the statement was less likely to be endorsed by suppliers with partnerships (one‐third in the USA and 30 per cent in Japan). 47.Monden, Y., Toyota Production System, Industrial Engineering and Management Press, GA, 1983. 48.Quote from a UK materials supplier in a recent postal survey. 49.Lamming, R.C., Cousins, P.D. and Notman, D.M., “Vendor assessment: the state of the art”, working paper, Centre for Research in Strategic Purchasing and Supply, University of Bath School of Management, 1995. 50.The concept was first introduced in Lamming[6] and is discussed further in Lamming et al.[36]. 51.For an explanation of total quality techniques such as these and “the five whys”, mentioned later, see [52]. 52.Crosby, P., Quality Is Free, McGraw‐Hill, New York, NY, 1979. 53.Ishikawa, K., What Is Total Quality Control? The Japanese Way, Prentice‐Hall, Englewood Cliffs, NJ, 1985. 54.Barbour, H. and Frost J.W., The Quakers, Greenwood Press, New York, NY, 1988. 55.Binton, H.H., The Religious Philosophy of Quakerism, Pendle Hill, Wallingford, PA, 1973. 56.Hurst, D.K., Crisis and Renewal: Meeting the Challenge of Organizational Change, Harvard Business School Press, Boston, MA, 1995. 57.Hines, P.A., Creating World Class Suppliers: Unlocking Mutual Competitive Advantage, Pitman, London, 1994. 58.It is a curious anomaly that proponents of supply chains frequently use two directly conflicting terminologies simultaneously. The suppliers are upstream of the customer (who should thus look “up” to them) and yet ideas and requirements may be passed, or cascaded, down to suppliers. It may be that preoccupation with the Japanese “tiered” model is responsible for this. The jargon of strategy compounds the issue, speaking of backward integration when referring to a takeover of a suppliers operation ‐ ahorizontal metaphor. 59.Lamming, R.C., A Review of the Relationships between Vehicle Manufacturers and Suppliers, DTI Vehicles Division/SMMT, London, UK, 1994. 60.For an account of such paralysis in the UK automotive components industry, see [59]. 61.Cousins, P.D., “Supply base rationalisation ‐ myth or reality”, Working paper, Centre for Research in Strategic Purchasing and Supply, University of Bath, UK, 1995.