Influencing the External Forces
Written by: James K. Allred

The fact that your business can't operate as an autonomous, self-sufficient island is hardly news. But while you can't control every outside variable, the business equivalents of drought and pestilence, you can often significantly influence the critical external forces that determine your day to day success. And two of the most important ones are your suppliers and your customers.

For your system to function at peak efficiency, turn your vendors into strategic partners. For example, your vendors probably need to deliver material more often and in smaller lots. Develop a cooperative quality program with them to implement dock to stock or dock to line and eliminate incoming inspection. Where appropriate, ask them to supply material in your standard containers or on automation-friendly, high quality pallets. They can then be inserted directly into buffers near the use points in your operation.

When your vendors ask, "What's in it for me?," show them how implementing a Just-in-Time system will help them achieve the same benefits you are enjoying. Perhaps offer to establish an electronic data interchange (EDI) link to give them access to your production information and eliminate the endless rounds of paperwork. Ask your vendors how you could redesign your product to make it easier or more efficient for them to supply your needs. Cut the number of vendors you use and place long-term blanket orders to obtain price breaks while assuring your vendor/partner a certain level of business.

As a supplier yourself, there are ways you can work with your customers to simultaneously reduce your cycle time and better meet their needs. For example, show them how your new products and new logistics process, designed for make-to-order and JIT delivery, will drastically cut their inventory investment and their warehousing requirements. Remind them that the high cost of a bloated warehouse full of your goods isn't necessarily in their best interest--or that of their customers.

Finally, as you begin your quest to break the time barrier, there's a third external factor as important as the two we've discussed. That's the designer and supplier of your material handling hardware and material control software. Find a good strategic partner. A partner who will look at your long term needs and those of the customers you serve. Don't ask your partner to simply automate your existing system--that will usually defeat your purpose. Instead, ask them to use their technology and expertise to help you change the way you do business. To help you become a lean and agile enterprise.

Then, you'll have the systems, the tools, and the know-how to break the time barrier at last.

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