Just-in-Time, Sub-Contracting and the Small Firm

Abstract

It has been suggested that moves towards Just In Time systems of production bring with them a fundamental change in the nature of the buyer-supplier relationship. New long-term, high-trust relationships are supposed to replace a win:win for the old win:lose equation. Equally, the new flexibility demanded of suppliers is supposed to favour the small firm. Elements of this analysis have been incorporated into variants of the post-Fordist paradigm. Based on research on high technology industries in Hertfordshire, this paper questions both assumptions. It is argued that small firms will be excluded from JIT style buyer-supplier relations. Furthermore, there is little evidence of a new form of cooperation emerging. Uneven and partial introduction of JIT systems is causing problems, the costs of which are being pushed onto suppliers by large firms.

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