Triads in Lean Management: Analyzing Buyer–Supplier-Supplier and Buyer–Supplier-Supplier’s Supplier Relationships for Zero-Defect Manufacturing

Abstract

AbstractMany studies on buyer–supplier-supplier triads demonstrate the value of the interactions between three business actors instead of two for identifying triadic collaboration strategies that can lead firms to improve their performance. However, there is little research to date that has explored which specific lean improvements the various types of buyer–supplier-supplier triads lead to. This paper fills this gap. We study an automotive supplier manufacturing company (the buyer) and its seven types of buyer–supplier-supplier triads emerging from the buyers’ attempt to implement zero-defect manufacturing (ZDM) in the production process of a crash management system. The case study shows how a buyer manages their first-tier suppliers through three types of closed buyer–supplier-supplier triads, where all three actors collaborate to work for the common goal of ZDM. The case also shows four additional types of open triads, where the buyer relies on the first-tier supplier to manage the second-tier supplier without directly interacting with the latter. The paper discusses what types of triads in the case study seem to be associated with the buyers’ efforts to achieve the following lean sub-goals of ZDM: full automation, production line flexibility, product flexibility, low cost, low defect rate, short cycle time, and minimum quality control. Finally, we also analyze the role of geographic proximity between the actors in open and closed buyer–supplier-supplier ZDM triads.