The entire chain is a single, integrated equity.

Suppliers contracts based on mutual benefits rather than straight cost. Supply chains are not about buying something a bit cheaper, these are strategic decisions.

The cost, quality, and delivery requirements of the manufacturing customer are objectives shared by every company in the chain.

Suppliers bring and element of continuous improvement to the relationship, through which the added value is constantly substantiated.

 

Team Up with Suppliers

IT-powered Value Chain

Deming's 14 Point's Plan for TQM

Extended Enterprise

Virtual Integration

3 Action Areas

 

 

 

 

 

 

Suppliers understand the buyer's business and are intimate enough with the operations to provide improvement opportunities and solutions to problems.

Suppliers are involved as co-innovators

Inventory is the last resort for resolving supply-and-demand imbalances between the tiers

Sharing of benefits achieved through collaboration

Enabled by e-business and electronic data interchange (EDI)

Measured by lead-time on class-A purchased materials.

 

Performance Management

Examples of Value Chains

Six Sigma

Extended Enterprise

Guiding Principles

Green Business

Green Procurement