DEFINING EXTERNAL CUSTOMER-SUPPLIER CHAINS
Introduction:
The external customer-supplier chain can be considered from the supply angle and from the customer angle. The supply chain has evolved from an era where manufacturing organisations were most concerned with controlling the flow of materials/components from their suppliers, to an era where supply chain management started to become concerned with supplier management, material management, information flow, customer service and long term relationships.
The use of JIT in customer-supplier chains:
JIT component |
Potential benefit |
Kanban |
Better quality |
Reduced set up time |
Less scrap |
Smaller lot size |
Less raw material |
Production smoothing |
Less work-in-progress |
Standardization |
fewer finished goods |
Uniform and invariable output rate |
Increased teamwork |
Multifunction workers |
Higher worker motivation |
Streamlined process design |
Increased worker and equipment efficiency |
flexibility and versatility |
Saved space |
|
Increased productivity |
- Since under TQM any organisation competes with the banners of QUALITY, DELIVERY and PRICE, JIT is considered to be the best method for achieving the objectives.
- Just In Time tackles waste, lead time and unnecessary complexities so that planning and control become easier to carry out. To work effectively, JIT requires certain components to be present.
- All the potential benefits which can be derived from the utilisation of JIT can help the establishment of Zero Defect as a realizable objective.
- Just In Time is the best approach towards managing suppliers since the objective from its introduction is the obtainment and sustainment of superior performance.
- It therefore addresses supplier management issues at the strategic, tactical and operational levels.
- The other side of the coin in external customer-supplier chains refers to the management of customer processes.
- The purpose of TQM is customer enlightenment and long term partnerships. Customer Expectation Management is therefore an essential activity if strong, long and lasting relationships are to be established.
- It is argued in various literature that for suppliers to ensure long term commitments from their customers, the former have to do a number of different things right and consistently over time to meet both short term and long term customer requirements.