Lead time reduction: early supplier involvement and the information supply chain

Abstract

Lead time reduction is a central concern of procurement, but is critical in the initial launch of newly designed or revised products. Early supplier involvement is often advocated for reducing these lead times, but empirical studies show equivocal results. This paper draws from literature on concurrent engineering to explore the mechanisms available for lead-time reduction in the supply chain. It is shown that these mechanisms depend on flows of the information that is created during the process. There is, in effect, a supply chain for information that must be recognised and managed. Conditions are identified that are necessary for early supplier involvement to result in lead time reduction and offered as testable hypotheses for future research.