ABSTRACT
The heavy reliance on suppliers forces the lean producer to develop rich relationships with its suppliers because the firms are tightly connected through their production processes. There are four major characteristics of lean buyer-supplier relations. The first characteristic deals with the reduced supplier base compared to mass producers. The second deals with the level of the relationship, which depends on the extent to which the buyer is relying on the supplier for innovation in product design. The third characteristic captures the nature of the lean buyer-supplier relationship, in particular they are stable over time, highly cooperative, and mutually beneficial. The final characteristic looks at the way organizational boundaries are blurred as the buyer and supplier firms begin to share resources dynamically. Four distinct levels of buyer-supplier relations can be identified: common suppliers, subcontractors, major suppliers, and family members. The nature of buyer-supplier relations deals primarily with the creation of trust between buyers and suppliers.
