Linkages among manufacturing concepts, inventories, delivery service and competitiveness

In this paper, we analyze a model that states that investing in progressive manufacturing programs, combined with a modern approach to supplier issues , has a direct effect on inventory level and structure, which in turn direc tly affects delivery service and delivery related competitive advantages. T he model was tested on data from the Global Manufacturing Research Group. T his data was broken up into three groups: the United States, Western Europe and Transitional Economies of Central and Eastern Europe. The results of a set correlation analysis showed that in all three groups of countries: (1) investing in progressive manufacturing programs and using modern approache s in dealing with suppliers were significantly linked to inventory level an d structure; (2) inventory level and structure were linked to delivery serv ice; (3) delivery service was related to competitive advantage. Companies f rom the transitional economies differed from the other two groups in that t hey did not show a relationship between inventory structure and competitive ness. This may demonstrate that management in transitional economies may st ill be working to achieve a more successful linkage between inventory struc ture and competitiveness. (C) 2001 Elsevier Science B.V. All rights reserve d.