Towards system capability: identifying logistics and manufacturing demands for small suppliers

Many subcontractors react on global outsourcing and ever stronger demands for price and lead-time reductions by striving to become more of a system supplier. That a larger overall responsibility follows this role is evident, but what does it really mean? Especially for a small or medium-sized subcontractor, with limited resources, this is a relevant question before investing in developing the organization – may it be production technology and equipment, competence, information technology, or management systems. A literature review reveals extensive customer demands from different perspectives on system suppliers, but also some vagueness about what constitutes such a supplier. An exploratory survey, based upon existing customer agreements and demands on a relatively small supplier developing towards system delivery capabilities, gives an incline of how customers and suppliers look at these demands. The results clearly points out some fields that need to be improved as firms develop system delivery capability.