ABSTRACT
About 30 percent of the parts in M&M products come from suppliers, although in many companies that number averages 60-70 percent or more. With so much product content provided by suppliers, a producer will not be able to become lean without strong quality and service commitments from its suppliers. Looking at the supply chain, which includes all organizations that contribute materials and services to the finished product (Figure 13.3), the question is: How can these organizations work together to optimize the performance of the overall chain? Optimal performance
is the ability of organizations everywhere in the chain to work together to provide the customer at the top with the best product and service for the lowest cost. That happens only when all of them work collectively to minimize waste and maximize service.
