Examining the Supplier-Buyer Relationship

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Examining the Supplier-Buyer Relationship

  • Toyota is known for using lean manufacturing in its operations, and many manufacturers (like Shelter Systems) in our industry use them as well.
  • Since acquiring lumber just in time isn’t possible, Shelter Systems adjusted its lean principles and decided to stockpile lumber to manage price volatility.
  • The uncertainty created by lumber price volatility is a huge risk for all component manufacturers.
  • Through SBCA, manufacturers could pool their purchasing power and get lumber producers to listen to concerns about this volatility and other issues.