Stable Supplier Research Articles

The impact of supply chain finance on supplier stability: The mediation role of corporate risk-taking

Supply chain finance is an effective mechanism to alleviate informational asymmetry between banks and SMEs and facilitate successful financing. C ompanies are becoming increasingly aware that maintaining close relationships with stable suppliers is crucial for the efficient development of supply chain finance. This study, based on a sample of Chinese listed companies from 2010 to 2022, examines the relationship between supply chain finance, supplier stability, and corporate risk-taking. The findings indicate that: 1. Supply chain finance positively influences supplier stability; 2. Corporate risk-taking mediates the relationship between supply chain finance and supplier stability; 3. Heterogeneity analysis reveals that the impact of supply chain finance on supplier stability is more pronounced in western regions and non-heavy pollution industries.

The pricing and sourcing strategies of competitive retailers under supply disruption in the presence of liquidated damages

Supply disruptions often make retailers face stock-outs and lead to higher selling price, which forcing retailers to adopt optimal sourcing strategies to avoid disruptions and carefully adjust their pricing when disruptions occur to achieve ideal profits in competition with other peers. In this paper, we optimize the combination of pricing levels and sourcing strategy of the competitive retailer having choices of cost or stable supplier when supply disruptions occur with the consideration of liquidated damages. Based on the procurement costs difference between retailers and competitors, we studied the optimal sourcing and pricing strategies under two types of Stackelberg game and one type of Nash game. We find that the Nash Equilibrium leads lower selling prices for retailers and larger purchases from cost suppliers compared to the Stackelberg game, but with the increase of retailer’s market potential, retailers gradually depend on stable suppliers. We also find that liquidated damages can have a significant impact on retailers’ decisions. Specifically, when the probability of disruption is high, retailers will mainly rely on stable suppliers in the presence of no liquidated damages, while in the case of liquidated damages, retailers will instead rely on cost suppliers. Furthermore, as liquidated damages increase, retailers prefer to source from cost suppliers and use very high price adjustments to account for supply disruptions. Especially when the risk of disruption is high, retailers rely mainly on cost suppliers and super high price adjustments. This highlights the critical role of liquidated damages on retailers’ optimal pricing and sourcing strategies.

Stable suppliers and real earnings management: empirical evidence from private placements

ABSTRACT This study uses text analysis to extract stable supplier information from company annual reports and discusses its impact on the real earnings management strategies used during a private placement period. The results show that companies with stable suppliers conducted more downward real earnings management prior to a private placement than those without such suppliers to form collaborative relationships with suppliers for earnings management. The suppliers mainly assisted majority shareholders in tunnelling, conducting covert methods such as share price discounts and offering cash dividends. This could be driven by the prospect of obtaining more purchases from the company following the private placement. This study is the first to explore how stable suppliers assist companies in conducting real earnings management and majority shareholders with asset tunnelling. The findings contribute to the research on the economic consequences of supplier relationships and the influencing factors of equity financing and real earnings management.

Smart Elderly Care: An Intelligent e-Procurement System for Elderly Supplier Selecting

(1) Objective: to accelerate the digitalization of the elderly care service industry and the construction of the smart elderly care industry, this paper designs an intelligent e-procurement system for elderly suppliers selecting from the perspective of smart elderly care, which can enhance the efficiency of elderly care supply chains and assist manufacturers of elderly products in choosing a reliable, high-quality supplier during trades. (2) Methods: the e-procurement system, including six modules, is built with an improved dynamic Markov Decision Process selection model combined with an Analytic Network Process, bringing dynamic evolution of both inventory cost and purchasing cost into long-term reward calculation, and taking into account 15 common indexes and 7 specific indexes when evaluating suppliers’ competitiveness. (3) Results: a real sample shows that when facing 50 suppliers with 50 different quotations, the e-procurement system selects a stable and reliable supplier that brings the best long-term profits for demand enterprises in ten purchase periods, and it makes the selecting process more efficient and more prompt. (4) Conclusions: the model can be used in the circumstance where an elderly product producer is forced to decide on a long-term strategy or reselect a new stable supplier since it is focused on choosing long-term and high-quality suppliers over numerous periods.

The impact of transformational leadership on supplier relational stability: The moderating role of automation and globalization

AbstractStable relationships with suppliers have been portrayed in the literature as having several economic and sustainability benefits. However, while a buyer firm's transformational leadership can be theorized to improve stable supplier relations, recent global business trends such as automation and globalization may endanger this stability. In this study, we therefore analyze the relationship between a buyer firm's transformational leadership and supplier relational stability and examine whether it is moderated by the buyer firm being affected by automation and globalization. We test our assumptions using data from a survey of German Mittelstand firms and confirm the moderating roles of automation and globalization. Our study therefore provides an updated and more nuanced understanding of how transformational leadership can affect supplier relational stability. Our findings also provide indications of how sustainable supplier relations can be achieved.

Public geoscience solutions for diversifying Canada's critical mineral production

Abstract Achieving net-zero carbon emissions goals will increasingly rely on critical mineral resources while simultaneously decreasing the extraction, processing and use of hydrocarbons as the primary provider of energy. Canada is well positioned to contribute to this effort through a series of innovative policy and research initiatives, and it is Canada's goal to be a stable supplier of critical minerals into the future. To this end, Natural Resources Canada and the Geological Survey of Canada invest financial resources into critical mineral research initiatives. This research aims to generate precompetitive baseline geological, geochemical and geophysical data for large, underexplored regions within Canada, whereas targeted studies focus on mineral systems science and improved exploration models for the large variety of critical mineral resources distributed throughout Canada. These research approaches can be combined, digitally, to generate mineral potential models. These ongoing efforts by the Geological Survey of Canada enhance the viability of Canada being (or maintaining its status as) a hub for critical mineral resource development and processing well into the future.

The Effects of Joining Multinational Supply Chains: New Evidence from Firm-to-Firm Linkages

Abstract We study the effects of becoming a supplier to multinational corporations (MNCs) using tax data tracking firm-to-firm transactions in Costa Rica. Event study estimates reveal that domestic firms experience strong and persistent gains in performance after supplying to a first MNC buyer. Four years after, domestic firms employ 26% more workers and have a 4% to 9% higher total factor productivity (TFP). These effects are unlikely to be explained by demand effects or changes in tax compliance. Moreover, suppliers experience a large drop in their sales to all other buyers except the first MNC buyer in the year of the event, followed by a gradual recovery. The dynamics of adjustment in sales to others suggests that firms face short-run capacity constraints that relax over time. Four years later, the sales to others grow by 20%. Most of this growth comes from the acquisition of new buyers, which tend to be “better buyers” (e.g., larger and with more stable supplier relationships). Finally, we collected survey data from domestic firms and MNCs to provide further insights into the wide-ranging benefits of supplying to MNCs. According to our surveys, these benefits range from better managerial practices to a better reputation.

Research on Enterprise Raw Material Ordering and Transportation Based on Index Analysis and Entropy Method

Aiming at the raw material ordering and transportation process of production enterprises, this paper first selects the supply index and obtains 56 suppliers with large supply volume. Then, with the help of entropy method, 56 suppliers are ranked by supply variance, order quantity, payment rate and supply frequency as decision variables. In order to obtain the most economical ordering plan, the data of order quantity and supply quantity are mined, and the categories of suppliers are further divided into stable suppliers, potential emergency suppliers and general emergency suppliers. By accumulating the production capacity from high to low among 50 suppliers one by one, the threshold larger than the historical average production capacity of 670397m ³is found. Finally, it is determined that only 39 suppliers can meet the production conditions.

Research on supply chain planning based on genetic algorithm and long short-term memory

With the integration of intelligent algorithm into the supply chain process, the fficiency of supply chain planning has been further improved through automatic prediction and decision-making. Although intelligent algorithms are developing, their challenges including real-time nature of supply chain planning and the complexity of scenarios hinder their true potential. In this study, we proposed an improved genetic algorithm (GA)-long short-term memory (LSTM) neural network prediction algorithm to solve various optimization planning problems for the supply chain from suppliers to production enterprises. Specifically, to determine stable suppliers, we first constructed the technique for order preference by similarity to ideal solution (TOPSIS) model to quantitatively evaluate each supplier, and the rationality of the index weight of the TOPSIS algorithm can be enhanced by the entropy method. Finally, the GA and LSTM were used to solve the decision-making and planning problem in raw material supply chain. Our results indicate that the algorithm we proposed can not only efficiently solve the decision planning problem in the raw material supply chain, but it also reasonably analyzes the suppliers quantitatively.

Model for Optimizing the Ratios of the Company Suppliers in Slovak Automotive Industry

The Slovak automotive industry consists of various companies and suppliers, with different positions in the supply chain for automotive manufacturers. The accuracy of component deliveries and their quality affect the ultimate competitiveness of the entire automotive industry. The creation of strategic partnerships and stable supplier–customer relationships is currently a necessity. The aim of the article is to design the model for optimizing the ratio of the company suppliers in the Slovak automotive industry. The basis for designing the model was the results of our own research focused on the quality and timeliness of component deliveries from various suppliers. Supply chain members work with multiple subcontractors, using multiple subcontractors to supply the same components. We analyzed the overall quality of delivered components at a certain stage of the supply chain. The quality of the supplied components was the sum of all items from all suppliers. The aim of the proposed model is to determine the optimal percentage of individual suppliers of a particular part so as to minimize the overall risk associated with the supply and inventory of a particular part for the customer. Research methodology was focused on identification of the key performance indicators and key risk indicators of components deliveries by different suppliers. Those indicators provide a basis for the effective results of further research. We designed and used an algorithm for preparing and evaluating the model for optimizing the ratio of the company suppliers in the Slovak automotive industry. This research used modeling methods, simulations, and optimization models. The proposed model was verified in the specific conditions of the automotive supply chain. Deliveries from two subcontractors were simulated. Based on the results of the simulations, the optimal supply ratio of the two subcontractors was determined for a specific component of a member of the supply chain at a higher level. The results of the research can be useful for different suppliers in the Slovak automotive industry. By partially modifying the model and adapting it for different conditions in other industries, the model of optimizing the distribution of supply from individual suppliers can be used for other supply chains.

Innovative solutions to increase productivity, safety and reliability of agricultural products processing equipment

It is noted that the agro-industrial complex is a stable supplier of food for the population and raw materials for various types of economic activities. In addition, works related to sawing of various solid materials (wood, plastic masses, frozen meat and fish products, bones and others are characteristic. The equipment used in this case is characterized by metal capacity, insufficient productivity and low reliability, increased injury hazard. In addition, wood sawing equipment is expensive and high-energy. In connection with the present, based on the study and analysis of the situation, the authors proposed an author's solution that allows reducing the shortcomings of existing equipment by half, providing an increase in productivity, reliability and safety in operation. This is facilitated by innovative design solutions, providing, in particular, sawing of materials when the saw block moves not only downwards, but also upwards according to the principle of a crank mechanism. The following material is devoted to the presentation of the design and principle of the proposed innovative solution.

Endogenous Production Networks under Uncertainty

Supply chain disturbances can lead to important increases in production costs. When looking for new suppliers, firms therefore worry about the risks associated with potential trading partners. We investigate the impact of beliefs and uncertainty on the structure of the production network and, through that channel, on the level and volatility of macroeconomic aggregates. To do so, we construct a model of endogenous network formation in which uncertainty about future outcomes affects the structure of the production network. In the model, when uncertainty rises producers prefer to purchase from more stable suppliers, even though they might sell at higher prices. The resulting reorganization of the network leads to less macroeconomic volatility, but at the cost of a decline in aggregate output. We calibrate the model on U.S. data and find that the mechanism can account for a sizable decline in expected GDP during periods of high uncertainty like the Great Recession.

Колхозы в Маньчжоу-го

Тhe article is devoted to the Korean «collective» villages, were created in Manchzhougo (Japanese semi-colony) of Korean immigrants, performing the role of a stable supplier of cheap grain. In 1944, in Manchuria there were 24000 families of the «collective» and «organized» Korean colonists (10 % of Koreans employed in agriculture). All of them were economically completely dependent on Japanese organizations, which provided peasants essentials, taking away almost all the product of the harvest. English version on pp. 80 - 85 available at URL: https://panor.ru/articles/collective-farms-in-manchukuo/53649.html

Менеджмент виробництва пасажирських вагонів за раціоналізації систем забезпечення

The article estimates the reduction of the inventory system taking into account the deviations of delivery times and in accordance with the approach just in time. It is substantiated that with the growth of the company's share in the railway car market and the increase in production volumes, the increase in return on investment is limited by the insignificant growth rate of innovation costs. It is concluded that in conditions of fierce competition, the existing organization of the supply process, especially in the production of new products, is not able to contribute to the necessary extent of efficient operation of the enterprise. The analysis of factors of reduction of a variety of systems the components target function of total expenses of supply of manufacture of passenger cars as a component of innovative development in the context of increase of comfort of transportations in the market of railway rolling stock is carried out. It is proposed to reduce the diversity in the logistics system by the method of half division by the method of dichotomy and its rational organization.The task of calendar planning of production and timely delivery to consumers should be solved taking into account the element of uncertainty of the level of production for the previous period and the number of days remaining until the end of the planned period. The stochastic nature of the provisioning process is taken into account in the efficient operation of strategic stock, which is created in the event of a possible delay in deliveries.The expediency of introducing into production the optimal number of modifications of passenger cars with rational productivity and minimization of total costs is considered. It is proposed to reduce the excess balances of production stocks of casting for wagons by establishing permanent contractual relations with stable suppliers in the performance of their obligations. Increasing sales of railway cars, increasing market share in the implementation of the company's development strategy will stabilize profit growth over a long period, increase return on equity, modernize and acquire modern fixed assets, replenish intangible assets.

Does supplier stability matter in initial public offering pricing?

Leveraging the availability of supplier and pre-IPO information in China, we examine the impact of supplier stability information disclosure on the IPO discount. Our findings suggest that when an IPO firm has stable suppliers, it has less IPO discount than an IPO firm with unstable suppliers. The results are robust to alternative measures of IPO discounts and supplier stability, and they are consistent with the information asymmetry explanation of IPO discount. Hence, IPO firms can leave less money on the table by maintaining stable suppliers. In addition, we document that stable supplier IPO firms, on average, exhibit higher real earning management in terms of discretionary production cost than those of unstable supplier IPO firms. Furthermore, the difference-in-differences analysis suggests that consistent stable supplier IPO firms have a higher share of purchase ratios than those of unstable supplier IPO firms post-IPO. The findings are consistent with the notion that stable suppliers transmit benefits to IPO firms pre-IPO to help these firms get regulatory approval, and, post-IPO, the IPO firms return the favor to the stable suppliers.

Dynamic Stable Supplier Coalitions and Invariance in Assembly Systems with Commodity Components

Assembly systems are composed of suppliers selling components to an assembler, who configures a final product for sale to the market. This is commonplace in many supply chains, such as healthcare and automobiles for example. Suppliers in such systems often form coalitions to enhance their bargaining power as well as for economies of scale. In the paper titled “Dynamic Stable Supplier Coalitions and Invariance in Assembly Systems with Commodity Components,” the authors show some interesting findings—how payoff allocation among coalition members can affect outcomes and when such outcomes are robust to allocation rules.

The Effects of Joining Multinational Supply Chains: New Evidence from Firm-to-Firm Linkages

We study the effects of becoming a supplier to multinational corporations (MNCs) using tax data tracking firm-to-firm transactions in Costa Rica. Event-study estimates reveal that domestic firms experience strong and persistent gains in performance after supplying to a first MNC buyer. Four years after, domestic firms employ 26% more workers and have a 4 to 9% higher total factor productivity (TFP). These effects are unlikely to be explained by demand effects or changes in tax compliance. Moreover, suppliers experience a large drop in their sales to all other buyers except the first MNC buyer in the year of the event, followed by a gradual recovery. The dynamics of adjustment in sales to others suggests that firms face short-run capacity constraints that relax over time. Four years later, the sales to others grow by 20%. Most of this growth comes from the acquisition of new buyers, which tend to be “better buyers” (e.g., larger and with more stable supplier relationships). Finally, surveys of domestic firms and MNCs provide further insights into the wide-ranging benefits of supplying to MNCs. According to our surveys, these benefits range from better managerial practices to a better reputation.

Can a Stone Kill Two Birds? The Effects of Political Relationships on Supply Chain for New Ventures

While research has established the importance of cultivating political relationship for businesses, how this affects new business ventures is less explored. Given the heightened resource constraints entrepreneurial firms face, does building government relationship help them in their critical tasks to ensure survival? We draw upon the resource dependence theory to develop arguments on how political relationships influence new ventures’ abilities to obtain stable suppliers and buyers. By enhancing their access to resources and reducing uncertainties, government relationships can help new ventures to attract more suppliers. However, by providing an alternative source of dependence, government relationships make new ventures depend less on buyers and can reduce the number of buyers. These opposing effects are further moderated for new ventures that differ in their access to resources. We test our arguments in the context of entrepreneurial firms in China’s transitional market, using a survey of 345 new ventur...

OPEC and world oil security

On the margin, the effectiveness of policy to enhance the stability of world oil market oil conditions greatly depends on which countries supply what economists would call the “marginal barrels.” That is, the barrels whose production responds to changes in demand. If the countries dominating the production of the marginal barrels are relatively unstable, policies to reduce world oil consumption or boost oil production from stable suppliers will provide the additional benefit of reducing the contribution of unstable producers to the world oil market. If the countries dominating the marginal barrel are relatively stable, however, policies to reduce world oil consumption or boost oil production from stable suppliers will be less effective in promoting oil market stability.Typically, we think of the highest cost producers as supplying the marginal barrel of oil, but our assessment finds it quite likely that OPEC dominates production of the marginal barrel of world oil. Moreover, OPEC members have been among the more unstable producers on a historical basis. Hence, reducing world oil consumption and promoting oil production in stable non-OPEC countries will enhance world oil security. Policies to promote stability in OPEC countries also would enhance world oil security.

The Political Economy of Turkish Stream

For countries that do not have their own gas deposits, import dependency turns out to be a substantial concern. Not only the potential will and the ability of the resource-holder countries to use natural gas as a political weapon, but also the political instabilities in the transit countries have been one of the issues that raise concerns in the consuming countries. These concerns led the consuming countries to search for stable suppliers with safe routes for delivery.