Early Supplier Involvement

Many theorists proclaim that supplier-buyer collaboration, while good, is inferior to ab initio collaboration (co-makership) in product design and supply planning, a concept termed “Early Supplier Involvement” (hereafter ESI). The SmartCar model demonstrates that ESI and centralized coordination are elemental in the successful SC formula (Harrison and van Hoek, 2002). Bidault et al (1998) identify five levels of ESI: information, design feedback, design contribution, concept-to-product manufacturing of components, and concept-to-product manufacturing of sub-assemblies.

Zsidisin and Smith (2004) aver that ESI reduces product development costs, provided involvement is at the earliest stage. Some authors dissent: ESI can compromise lead times and technical quality (Hartley et al, 1993), and is not a uniformly positive experience, due to incompatible cultures and conflict over objectives and structure (Rigby, 1996).