Sharing Sensitive Information in Supply Relationships:: The Flaws in One-way Open-book Negotiation and the Need for Transparency

One of the key issues in managing inter-organisational relationships is the need for exchanging sensitive information and knowledge between customer and supplier. Attempts to conduct this process in practice appear to have taken customer dominance as their basis; the negotiation techniques that have developed as a result appear clumsy and flawed. This paper explores customers' requirement for their suppliers to 'open their books' and reveal sensitive and secret information. The subsequent tactical ploys and responses commonly employed are discussed and a potential solution to the problem is proposed - the concept of jointly managed transparency at the supply interface.

[1]  Pierpaolo Andriani,et al.  Managing Knowledge for Innovation , 2002 .

[2]  K. Möller,et al.  Business Relationships and Networks: Managerial Challenge of Network Era , 1999 .

[3]  Wolfgang Streeck,et al.  When Lean Enterprises Collide: Competing through Confrontation , 1996 .

[4]  R. Kaplan,et al.  The promise--and peril--of integrated cost systems. , 1998, Harvard business review.

[5]  R. Grant Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp. , 1996 .

[6]  R. Schonberger Japanese manufacturing techniques : nine hidden lessons simplicity , 1982 .

[7]  Finn Wynstra,et al.  Combining value and price to make purchase decisions in business markets , 2000 .

[8]  R. Kaplan,et al.  Measure Costs Right: Make the Right Decisions , 1988 .

[9]  S. Seuring Supply Chain Target Costing — An Apparel Industry Case Study , 2002 .

[10]  J. K. L. Ho A proposed approach for reconfiguration of flexible assembly line systems by motion genes , 2005 .

[11]  E. F. Schumacher,et al.  A Guide for the Perplexed , 1977 .

[12]  James Richardson Beyond Partnership: Strategies for Innovation and Lean Supply , 1994 .

[13]  Alastair Nicholson,et al.  Closing the gap: a polemic on plant‐based research in operations management , 1999 .

[14]  Robin Cooper,et al.  When Lean Enterprises Collide: Competing Through Confrontation , 1995 .

[15]  M. Wouters,et al.  Designing Cost-Competitive Technology Products through Cost Management , 2004 .

[16]  Nigel Caldwell,et al.  Developing the Concept of Transparency for Use in Supply Relationships , 2004 .

[17]  Harold J. Steudel,et al.  Manufacturing in the Nineties: How to Become a Mean, Lean, World-Class Competitor , 1991 .

[18]  Kevin Baird,et al.  Adoption of activity management practices: a note on the extent of adoption and the influence of organizational and cultural factors , 2004 .

[19]  B. Modarress,et al.  Kaizen costing for lean manufacturing: a case study , 2005 .

[20]  Paul Close,et al.  Negotiating field roles in manufacturing management research , 1999 .

[21]  G. Krogh,et al.  Knowing in Firms: Understanding, Managing, and Measuring Knowledge , 1999 .

[22]  Peter Hines,et al.  A Framework for Extending Lean Accounting into a Supply Chain , 2002 .

[23]  Christer Karlsson,et al.  Change Processes Towards Lean Production: The Role of the Management Accounting System , 1996 .

[24]  M. Gordon,et al.  PUBLICATION RECORDS AND TENURE DECISIONS IN THE FIELD OF STRATEGIC MANAGEMENT , 1996 .

[25]  Stefan Seuring,et al.  Cost management in supply chains , 2002 .

[26]  Ellen J. Dumond Value management: an underlying framework , 2000 .