3 What are the opportunities and threats facing suppliers as a result of the likely changes to Global’s quality of service priorities? This case study contains information on how Global’s expectations of quality of service from its suppliers evolved over a number of years. Further changes are affecting these suppliers as Global’s own customers continue to demand higher levels of service. If you are unfamiliar with the term material requirements planning (MRP), it is explained in Chapter 6 (e.g. see page 175).

Global is one of Britain’s largest manufacturers of lighting products. The market for architectural lighting, one of its major product lines, has become increasingly volatile and competitive in recent years. Pressure to supply products more cheaply and more quickly to a higher standard on an international basis has meant that Global has had to work hard on shortening product life cycles and reducing delivery lead times.

During 1996, the new managing director raised the profile of logistics by making an appointment at board level. Following this change in organisational structure, a ‘lean’

approach to supply chain management and manufacturing was implemented over the next three years. But recently the lean approach to managing the supply chain has been found to have serious shortcomings in terms of meeting increased demand for customised products such as architectural lighting. Consequently, Global’s supply chain management strategy has evolved to accommodate the rapid growth in the market for these products. This change resulted in a multifaceted supply chain strategy, which increases Global’s ability to meet the mass customisation needs of its customer base.

This multiple strategy approach has created many challenges for suppliers.