A supplier perspective on rapid new product volume ramp-up manufacturing strategy

This paper highlights that weak production volume ramp up capability can be a major impediment for a supplier to thrive in a tightly linked overseas Japanese collaborative manufacturing supply network. An exploratory multiple-case longitudinal research methodology was adopted in this study involving two large Japanese MNCs and their respective supply networks consist of ten factories in four countries. The preliminary findings suggest that a supplier attaining rapid ramp up capabilities can enhance the predictability of initial production output during new product volume ramp up. Thus the new supplier gains immediate customer trust on the ability to deliver the committed product/services and consequently leads to increase in future business opportunities.