Supply‐chain management and time‐based competition: the role of the supplier association

Abstract

Develops the concept of time‐based competitive strategies within the context of supply‐chain management. Explores the current interest in supplier integration as a source of competitive advantage in consumer markets and proposes that the Japanese influenced network sourcing model provides a method whereby the advantages of vertical integration can be achieved without reducing the flexibility of product and material outsourcing. A central feature of the network sourcing approach is the use of supplier co‐ordination and development, facilitated by a supplier forum known as a supplier association. These associations represent a series of linking pins, extending from the focal purchasing organization, whereby the joint determination of supply chain improvements can be formulated and shared between a focal customer organization and entire groups of suppliers. Argues that the successful exploitation of these associations is a major pillar in developing and sustaining continuous improvement on a supply‐chain scale, where the efforts of each and every supplier are aligned to the changing requirements of the consumer market.