Old adages made new: Supplier performance management is job one in creating a lean supply chain

摘要

LSI Corp., a provider of silicon, systems, and software technologies used by other companies to power storage and networking solutions, has no factories of its own. Instead it chooses to run its supply chain as a virtual company. That kind of operation obviously places a premium on supplier performance. To establish a successful virtual business model, LSI must document and maintain tight integration with supplier operations, says Don Alvine, VP of operations and chief procurement officer at the Milpitas, Calif.-based company. After all, LSI's performance can only be as good as that of its suppliers.