ABSTRACT

The emergence of lean supply is the first step in the larger process of creating a lean supplier network. To achieve the full advantages of lean design and production, all the firms in the supply chain have to adopt lean buyer-supplier relations. Network protocols are critical because they moderate the behavior of all the firms in the network to ensure that buyer-supplier relationships retain the characteristics of lean supply. Network protocols are operative throughout any lean supplier network. The primary determinant of the type of supplier network is the number of core firms that dominate the network. The first type of network, a "kingdom," emerges when a single firm adopts the core position. These networks operate to support the central firm that dominates the entire network. The second type of network, a "barony," emerges when several firms adopt the core position. Finally, the third type of network, a "republic," emerges when there is no core firm.