Sunday 12 October 08 - 00:19
 

Lean Manufacturing

It's all down to very open partnerships and contracts

01 Oct 2005

BB spoke to an industry analyst who told us: "If I was a boatbuilder I would go the lean manufacturing route. But in order for it to work properly, the builder and supplier have to have a very open partnership with a contract.

"The contract must outline specifically what the builder is going to do and how many boats he will be building. It must identify the supplier's specific products that will be used. It must then outline the product life of the boat and how soon any change is anticipated - any changes must then be notified to the supplier with enough time for the supplier to find an alternative outlet or tailor his order so he doesn't get left with product in stock."

And the suggestion is that smaller companies should not get overawed by Fairline and its demands. "Fairline needs its small suppliers as much as the suppliers need Fairline, " he said. "And don't worry about the threat of them taking their business to China. The Chinese often demand money up front, so treat Fairline's credit demands as a starting point and work to get the best deal for your own company."

And get the agreement in writing, he added.

PN

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