You Are Not a Victim of Your Supply Chain Suppliers — Guest Blog by MetaExpert A.J. Tozzi

December 2, 2017

The biggest challenge I encounter in achieving supply chain excellence is that many organizations believe they are powerless when it comes to working with their suppliers.  The typical beliefs I encounter are: “we aren’t big enough to have any leverage”, “we can’t control what our suppliers do”, and “implementing a Lean supply chain will increase our costs”.  Interestingly, most organizations feel the same way toward managing their customers as well.  It is this victim mentality that prevents many companies from achieving operational excellence.

The root cause of these limiting beliefs usually comes down to two critical factors: 1) not fully understanding what a Lean supply chain actually is, and 2) not understanding how to “sell it”, in other words, how to demonstrate how it will help the supplier to be more competitive and then use that as part of the negotiating process.

To overcome these limiting beliefs, I focus on building a solid understanding of what a Lean supply chain is, from both the perspective of the customer, as well as the supplier.  A key ingredient of the truly Lean supply chain is the concept that the entire supply chain is “in this together”, to be mutually successful and profitable.  All too often what I see is the implementation of a “Mean supply chain” rather than a Lean supply chain.  A “Mean supply chain” is one where each party is out to lower their own cost and risk exposure at the expense of the others in the supply chain.  It is an atmosphere of competition rather than collaboration, which inevitably leads to a less than optimal supply chain as each party seeks to leave the other holding the bag.

Once the Lean supply chain concepts are fully understood, mastered and a process for supply chain development is created, only then can an organization create a Lean supply chain where all parties work together to achieve mutual success.

Additional Reading

Integrated Lean Six Sigma and Collaborative Leadership of the E2E Supply Chain

Supply chain altruism – The art of giving back by using your hard-earned lean and supply chain skills to help others help themselves

 

Recent Posts

May 27, 2021
The Informal Feedback Formula

Feedback should be a part of every effective business communication. A chief complaint among workers across industries is that feedback is not given at the right time and in the right way to be meaningful and useful.  The annual or semi-annual performance review is inadequate to satisfy self-development and increased productivity. Delivered by the right […]

Read More
May 25, 2021
Same Circus, Different Clowns

Once upon a time, I attended a training session that my company had arranged for all managers at its various sites.  The company made a smart decision to hire a third-party trainer, who traveled to each site in order to ensure consistency of the training and messaging.  While introducing herself at my session, our trainer […]

Read More
April 15, 2021
Successful Brands Align Inside Reality with Outside Perceptions

People don’t buy cars. They buy Nissan Altimas.  People don’t buy smartphones. They buy Apple iPhones.  People don’t buy shoes. They buy Nike Air Jordans.  People don’t buy products. They buy brands.  What Is a Brand? A brand distinguishes you from your competitors. It is your identity. It affects everything your organization does. It builds […]

Read More

Industry Experience

Aerospace
Chemical
Computer/Software
Construction
Consumer Goods
Defense
Energy
Entertainment
Financial Services
Food
Health care
Information Services
Insurance & Retirement
Manufacturing
Automotive
Complex Manufacturing
Media
Pharmaceutical
Pulp and paper
Retail
Steel
Telecommunications
MetaExperts™ a Division of MetaOps
MetaOps Logo Reversed Super Light

Contacts

10343 W RS Avenue, Mattawan, MI 49071, United States
734-425-1455
experts@metaexperts.com

©2021 All rights reserved, MetaOps, Inc.

Sitemap
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram