Supplier Kaizen: Engaging the Extended Value Stream

For many businesses, as much as 80% of product cost is comprised of goods or services provided by external suppliers. And often workers inside a business will tell you that about 80% of their headaches having something to do with suppliers. Yet, the traditional arm’s length relationships between customers and external suppliers have created barriers to improving this situation. While improvement inside many businesses has made significant gains, kaizen with suppliers – the outside business – remains distant and adversarial. Yet, to reap the most benefits of continuous improvement over the long term, companies must reach beyond their own 4 walls and engage the extended value stream. In this video GBMP, using entertaining (yet, reality based) skits and interviews with practitioners that are already reaping the benefits of supplier kaizen in their companies, explores how to break through some of these supply chain barriers in order to create a true win-win scenario, creating advantages for both customers and suppliers. Shorter lead-times, better quality and delivery and yes reduced costs are natural outcomes of this win-win relationship, but may in fact be the by-products of the shared vision and collaboration that results when supplier kaizen takes hold. We speak often of employee empowerment. Well this is all about supplier empowerment.

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