ABSTRACT
Lean production acknowledges the importance of the supply chain to competitive advantage and mandates improvement efforts that extend beyond a company and to its suppliers and distributors. The supply chain is the network of customers and suppliers wherein each provides the other with materials, components, services, and orders. This chapter explains a range of supply chain management topics: customer–supplier relationships, the changing role of the purchasing function, and application of lean concepts throughout the supply chain. It focuses into the topic of logistics management, which is managing the movement of materials from suppliers to customers and at distribution points in between. By entrusting to suppliers the design and production of subcomponents and parts not close to its core competency, the automaker reserves more of its own resources to devote to developing critical skills and capabilities necessary to keep enhancing its core competency. Consistent with lean philosophy, relationships between customer–suppliers are originated and managed with emphasis on the long-term.
