Definition
The improvement was introduced to the workshop of the strategic vendor: prior signing of two-way confidentiality agreements, confirmation of the counterpart ' s compliance with five findings from the strategic supplier, inclusion of results-sharing negotiations in the common action plan before bringing the tools.
In detail
Lean Supply Chain (LSC) extends improvement week activities to the sites of strategic suppliers. By signing bilateral confidentiality agreements in advance, confirming suppliers meet strategic criteria, and incorporating benefit-sharing negotiations into a joint action plan, it then applies lean tools for improvement. It addresses how to help key suppliers enhance capabilities and works in coordination with supply-base management and commodity management. Outputs include supplier improvement plans, benefit-sharing agreements, and post-improvement performance.
Example in practice
A manufacturer's strategic supplier's on-time delivery rate declined, so the manufacturer decided to conduct an improvement week at the supplier's plant. Both parties first signed a bilateral confidentiality agreement, confirmed the supplier met strategic criteria, and wrote the benefit-sharing mechanism — including an owner and a date — into the joint action plan before jointly analyzing processes and implementing kanban and standard work. At the end of the improvement week, both parties settled the cost-saving split according to what had already been agreed. Finally, an improvement report and follow-up action plan were produced.