Between a rock and a hard place: some dilemmas for smaller component suppliers

This paper highlights some of the issues faced by smaller manufacturing firms attempting to remain competitive in the face of supply chain rationalisation. It is argued that rather than following the holistic templates of change adopted by many larger firms, the approach of smaller component suppliers tends to involve more partial, short term solutions. Three dilemmas for smaller firms are identified and the experiences of a Best Practice Network of component suppliers illustrate some of the ways in which companies down the supply chain attempt to remain competitive, in the face of rationalisation driven by original equipment manufacturers.