Supply Chain Development for the Lean Enterprise: Interorganizational Cost Management

Hardcover (Print)
Buy New
Buy New from
Used and New from Other Sellers
Used and New from Other Sellers
from $1.99
Usually ships in 1-2 business days
(Save 97%)
Other sellers (Hardcover)
  • All (12) from $1.99   
  • New (3) from $58.77   
  • Used (9) from $1.99   


Four questions determine whether a company is using interorganizational cost management.

  • Does your firm set specific cost-reduction objectives for its suppliers?
  • Does your firm help its customers and/or suppliers find ways to achieve their cost-education objectives?
  • Does your firm take into account the profitability of its suppliers when negotiating component pricing with them?
  • Is your firm continuously making its buyer-supplier interfaces more efficient?

If the answer to any of these questions is "no", your firm risks introducing products that cost too much or are not competitive. The full potential of the supply network can be realized only when the entire supply chain adopts interorganizational cost management practices.

Competitive pressure has led many firms to try to increase the efficiency of supplier firms through interorganizational cost management systems, a structured approach to coordinating the activities of firms in a supplier network to reduce the total costs in the network.

It is particularly important to lean enterprises for two reasons:

  • Lean enterprises typically outsource more of the added value of their products than their mass producer counterparts.
  • Lean enterprises usually compete more aggressively and must manage costs more effectively.

Interorganizational cost management can reduce costs in three ways: through product design, through product manufacture and through cooperative approaches between buyers and suppliers to build smoother interfaces.

However, more than just cost management must cross interorganizational boundaries. Suppliers are also a major source of innovation for lean enterprises. Successful supplier networks encourage every firm in the network to innovate and compete more aggressively. Read this book to learn to manage the supply chain to forge competitive advantage while reducing costs.

Read More Show Less

Editorial Reviews

Tells how strategic cost management can drive profits, motivate behavior, and keep an organization on target, and presents nine case studies showing how successful companies transfer cost management pressures across organizational boundaries. Contains sections on confrontational cost management, principles of lean supply, and interorganizational cost management. Cooper teaches at the Peter F. Drucker Graduate Management Center. Slagmulder teaches at De Vlerick School for Management and the School of Applied Economics and Economic Sciences at the University of Ghent, Belgium. Annotation c. Book News, Inc., Portland, OR (
Read More Show Less

Product Details

Table of Contents

  1. Executive Summary
  2. How Firms Compete Using the Confrontation Strategy
  3. The Role of Cost Management in Confrontation Strategy
  4. The Research Project
  5. Lean Buyer-Supplier Relations
  6. Lean Supplier Networks
  7. An Overview of Interorganizational Cost Management
  8. Target Costing
  9. Interorganizational Implications of Target Costing
  10. Chained Target Costing and Functionality-Price-Quality
  11. Interorganizational Cost Investigations
  12. Concurrent Cost Management
  13. Kaizen Costing
  14. Interorganizational Implications of Kaizen Costing
  15. Increasing the Efficiency of the Buyer-Supplier Interface
  16. Interorganizational Cost Management in Action
  17. Lessons for Adopters

    Case Studies

  18. Citizen Watch Company: Cost Reduction for Mature Products
  19. Kamakura Ironworks Company, Ltd
  20. Komatsu, Ltd: Target Costing System
  21. Miyota Company, Ltd
  22. Olympus Optical Company, Ltd: Cost Management for Short-Life Cycle Products
  23. Omachi Olympus Company, Ltd
  24. Tokyo Motors Works, Ltd: Target Costing System
  25. Toyo Radiator Company, Ltd
  26. Yokohama Corporation, Ltd: The Yokohama Production
Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)