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 directly affects delivery service
and delivery related competitive advantages. The model was tested on data from the
Global Manufacturing Research Group. This 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 approaches in
dealing with suppliers were significantly linked to inventory level and structure;
(2) inventory level and structure were linked to delivery service; (3) delivery service
was related to competitive advantage. Companies from the transitional economies differed
from the other two groups in that they did not show a relationship between inventory
structure and competitiveness. This may demonstrate that management in transitional
economies may still be working to achieve a more successful linkage between inventory
structure and competitiveness. (C) 2001 Elsevier Science B.V. All rights reserved.
