Supplier Development Practices Research Articles

A Review of Investigation of Supplier Evaluation and Development Practices in Supply Chain of Construction Industry

A Review of Investigation of Supplier Evaluation and Development Practices in Supply Chain of Construction Industry

Supplier Development Practices and Supply Chain Performance of County Governments in Kenya

Many organizations have realized the significant role suppliers play in determining organizational performance. This study sought to examine the influence of supplier development practices on supply chain performance of County Governments in Kenya. This study employed a descriptive survey research design targeting 112 procurement staff. The study utilized both stratified and simple random techniques. For data collection close ended questionnaires was used. For data analysis descriptive and inferential statistics were used. Descriptive statistics used were mean and standard deviation and Inferential statistics used Pearson correlations and simple linear regression. The study found that supplier development practices had a positive and significant effect on supply chain performance of County Governments in Kenya. The findings extends our knowledge on supplier development practices that can enhance performance. The study recommends for County Governments to develop suppliers through training, supplier financing and innovation so as to enhance performance of supply chain.

Supplier Management and Organizational Performance of Food Processing Industry in Nairobi County Kenya

In current environmental changes, hyper-stiffed competition to deliver more innovative products, changing customer and investor demands and globalization have become the standard setting for firms in Food Processing Industry. Multinational firms are constantly under pressure to find the most profitable ways to bring products to market. To effectively compete, organizations must continuously improve their performance by reducing costs, enhancing quality, and differentiating their products and services. Increasingly, this means relying on third parties management and outsourced services have to lead to a highly collaborative working relationship with their suppliers.  The study meant to determine the relationship between Supplier Management and Organizational Performance of Food Processing Industry in Nairobi County Kenya. The study objectives was to determine the role of supplier selection process, supplier involvement practices, supplier development practices, and supplier monitoring programs on the Organizational Performance of Food Processing Industry in Nairobi County Kenya. Theories relevant to this study were Transaction Cost Theory, Resource Dependency Theory and Social Capital Theory which most of them were drawn from different disciplines such as industrial-organizational psychology and economics reflecting the interdisciplinary origin of purchasing and supplies management which were all shown how the variables link up with the mentioned theories. Study variables were discussed under the conceptual framework there after operationalized.  Theories relevant to this study were reviewed that included; resource based view theory, strategic choice theory, network theory, and stakeholder theory. The study variables were explained under conceptual framework under independent variables that is; supplier selection process, supplier involvement practices, supplier development practices, and supplier monitoring programs and Organizational Performance. Critique of relevant literature relevant to the study was done and research gaps identified. The study adopted cross-sectional survey design using both quantitative and qualitative methods. The target population was 102 Food and Beverages Manufacturing Firms in Kenya in Nairobi City County. The study used simple random sample to pick a sample size of 50 Food and Beverages Manufacturing Firms. Data was collected using questionnaires which were self-administered. Qualitative and quantitative data was coded and entered in Statistical Package for Social Sciences version 24 for analysis. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive statistics were generated. Inferential statistics using linear regression and correlation analysis was carried out to test the relationship between independent and dependent variables where all the independent variables were positively correlated with the dependent variable. The results were presented using tables and graphs. The study findings indicated that, supplier selection process, supplier involvement practices, supplier development practices, and supplier monitoring programs have a positive and significant association with performance of food and beverages manufacturing firms in Kenya. This implied that Supplier Management practices and performance of food and beverages manufacturing firms change in the same direction. The study found out that food and beverages manufacturing firms’ in Kenya have embraced Supplier Management practices for effective performance. The study recommends that it would be appropriate for food and beverages manufacturing firms embrace, supplier selection process, supplier involvement practices, supplier development practices, and supplier monitoring programs as Supplier Management practices. Equally, the study recommends that food and beverages manufacturing firms should conduct overall effective and efficient supplier management strategies /practices that focus on long term goals of the organization. This study recommends that a similar research can be conducted from multiple informants groups to come up with a variety of outcomes by creating discussion among supply chain managers with different skills and capability. Moreover, a similar research can be conducted using longitudinal so as the research to identify the evolution of supplier management strategies across number of year.

Linking Sustainable Supplier Selection to Firm’s Sustainable Performance: The Moderated Mediating Role of Supplier Development and Leadership for Functional Integration

This study aims to investigate the moderated mediation model in which leadership support for functional integration complements sustainable supplier selection to enhance a firm’s sustainability performance by promoting sustainable supplier development practices. We tested the proposed hypothesis using 289 data collected from multiple sources of manufacturing firms. Our results reveal that sustainable supplier selection indirectly enhances a firm’s sustainability performance via sustainable supplier development practices. In addition, our results highlight that leadership support for functional integration strengthens this indirect relationship. This study contributes to the sustainability management literature by providing insights into how firms promote sustainability performance by combining leadership with sustainable supplier management.

Optimal selection and investment-allocation decisions for sustainable supplier development practices

Organization’s sustainability performance is influenced by its suppliers’ sustainability performance. This relationship makes sustainable supplier development a strategic competitive option for a buyer or focal organization. When considering sustainable supplier development practices (SSDPs) adoption, organizations have to balance and consider their limited financial resources and operational constraints. It becomes necessary to both select the best SSDPs set and investment allocation among the selected SSDP set such that the organization can maximize overall sustainability performance level. In this paper, an integrated formal modeling methodology using DEMATEL, the NK model, and multi-objective linear programming model is used support this objective. The proposed methodology is evaluated in a practical sustainable supply chain field study of an equipment manufacturing company in China. Through case study, we found that the interdependency among SSDPs must be considered in SSDPs selection and investment allocation problem. Theoretical, managerial and methodology implications, conclusions, and directions for future research are also presented.

Influence of Supplier Development Practices on Procurement Performance in Food and Beverage Manufacturing Firms in Nakuru East Sub- County, Kenya

Influence of Supplier Development Practices on Procurement Performance in Food and Beverage Manufacturing Firms in Nakuru East Sub- County, Kenya

Striving for Enterprise Sustainability through Supplier Development Process

Much research has already been dedicated to the impact of the supply chain, but less attention has been paid to the potential of supplier development (SD) processes in strengthening enterprises’ sustainability performance. This study aimed to indicate how the approach to socially responsible supplier development has changed over the years (2010–2019) in the automotive sector considering the types of practices and the applied areas of social responsibility. The study was based on original and empirical content analysis research of sustainability reports of car producers. To identify changes in the approach to socially responsible supplier development (SRSD) practices, 17 criteria were identified within direct as well as indirect types of supplier development practices. Considering areas of social responsibility, we applied the core subjects of social responsibility based on the ISO 26000 standard. The findings revealed that during the analyzed period, there has been a recursive use of both direct and indirect SD practices by the car producers but to varying degrees. The environmental protection, human rights, labor practices, fair operating practices, and organizational governance issues were the major concerns. When comparing 2010 and 2019, a clear increase was observed within all identified SRSD initiatives. The study outputs and examples of SRSD practices of car producers can act as a role model for automotive suppliers as well as other industries regarding how to incorporate sustainability into supplier development processes.

Supplier development practices and their challenges: a roadmap proposal / Práticas de desenvolvimento de fornecedores e seus desafios: proposta de um roadmap

Original Equipment Manufacturers (OEMs), when focusing on their core business, outsource non-essential processes to their supplier base, a strategy that makes them dependent on their suppliers’ performance. The purpose of this paper is to propose a practical roadmap based on the post-relevant supplier development practices, barriers to be avoided by the managers, and critical success factors identified by the literature reviewed and in five Brazilian companies in the automotive segment. Although supplier development (SD) is widely acknowledged, there is no roadmap to guide the organizational managers when applying it. The roadmap aims to direct managers' activities when developing their suppliers to obtain better results. The method used was a qualitative research and its strategy was a multiple case study with an exploratory character. Data collection was obtained through a semi-structured interview. The research identified 17 relevant practices of supplier development. These practices of supplier development identified by the literature reviewed, coupled with the manager's speech, have enabled the researcher to figure out an empirical roadmap to assist organizational managers in planning and conducting development actions on their supplier base in a structured manner. The results obtained by the managers' speech indicated that OEMs want creative and innovative solutions from their suppliers to be applied to the new generations of their vehicles, far beyond the products or services usually delivered until now. Another important result for the successful supplier development was the top team’s commitment to implement the changes resulting from development practices combined with a preventive rather than corrective posture.

A conceptual model of subcontractor development practices for LEED projects

PurposeThis paper presents a conceptual model of effective subcontractor development practices to guide general contractors' development of a network of high-performing subcontractors (SCs) for Leadership in Energy and Environmental Design (LEED) projects.Design/methodology/approachDrawing from supplier development theories and practices in the manufacturing sector, a mixed interpretivist and empirical methodology is adopted to examine the body of knowledge within literature for conceptual model development. A self-reporting survey questionnaire with a five-point Likert scale is used to assess 30 construction professionals' perceptions of the effectiveness of 37 SC development practices classified into five categories. Descriptive statistics, weighted means, and t-tests are used for data analysis.FindingsSC prequalification, commitment, incentives, evaluation and feedback practices can be effective in generating high-performing SCs. Practices that require more direct involvement and linkages between GC and SC are perceived to be less effective.Research limitations/implicationsTheoretical contributions include a framework to foster future research to advance knowledge and understanding to enhance the adoption of SC development practices in the construction sector.Practical implicationsImplementation of ranked SC development practices can equip GCs with a network of high-performing SCs for improved competitive advantage and revenues.Originality/valueThe proposed conceptual model expands discussions on the modification of supplier development theories and practices currently utilized in the manufacturing sector toward their application in the construction sector. This research differs from previous research, which primarily focused on the manufacturing sector.

Exploring the Impact of Supplier Development Practices on Manufacturing Responsiveness in Malaysia

Exploring the Impact of Supplier Development Practices on Manufacturing Responsiveness in Malaysia

The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

PurposeIn the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance.Design/methodology/approachData were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling.FindingsThe results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance.Practical implicationsThese results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed.Originality/valueThe results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

A novel fuzzy reference-neighborhood rough set approach for green supplier development practices

Green supplier development (GSD) is an important operational strategy that significantly contributes to environmental performance of the supply chain. However, green supplier evaluation for development, the first step in green supplier development, has not been widely reported in the literature. This article aims to develop a green supplier evaluation methodology for supplier development. Poor suppliers set and weak areas of each supplier are identified so that green supplier development practices can be implemented. This study proposes an environmental evaluation methodology based on environmental performance and environmental practices and use of development priority number to effectively assess suppliers’ green capability. A novel interval-valued intuitionistic fuzzy numbers based reference-neighborhood rough set approach is then used to identify the poor supplier set and suppliers’ weak areas. The feasibility of this methodology is illustrated through a case study in a large chemical company. The methodology proposed can guide organizations when developing more specific GSD plans through identifying the poor suppliers and the weak areas.

공급자 개발에서 공급자 분류를 위한 개념적 프레임워크: 공급자 개발 프로그램과 사회 네트워크 분석의 중심성 연결

공급자 개발에서 공급자 분류를 위한 개념적 프레임워크: 공급자 개발 프로그램과 사회 네트워크 분석의 중심성 연결

Do dependent suppliers benefit from buying firms’ sustainability practices?

In view of the limited understanding and research on the effect of sustainable supplier development practices on supplier performance, this study examines the impact that the implementation of assessment and collaboration practices have on supplier performance outcomes. In addition, we investigate the role that supplier dependence has on the performance outcomes of assessment on and collaboration with suppliers. Based on a sample of 129 Chinese manufacturing firms, we run a series of OLS regressions to test our theoretical models. The findings suggest that collaboration improves supplier performance, while assessment causes a deterioration. In addition, supplier dependence could be leveraged for suppliers to gain performance improvements through collaborative practices.

Impact of Supplier Development on Supplier Performance: Mediating Role of Trust

Value-adding functions of textile industry make the buying firms dependent on their suppliers. The buying firms utilize supplier development practices to improve supplier performance. This study utilized questionnaire survey to collect data from 345 textile firms. Regression analysis and structural equation modelling is employed to test the research framework of supplier development, supplier performance, and trust of suppliers through AMOS. Indirect supplier development and direct supplier development practices affect supplier performance. Findings of the study show that supplier development practices improve supplier performance in textile industry. Buying firms’ trust is positively related to supplier performance improvement. As well as it mediates across supplier development dimensions and supplier performance improvement. The study emphasizes, the large-scale manufacturing buying firms need to trust its suppliers when engaged in supplier development practices in textile industry. Buying firm’s supplier development practices improve supplier performance. Additionally, buying firm’s trust positively, significantly, and partially mediate between supplier development dimensions and supplier performance improvement in textile industry of Pakistan.

Prioritization of Supplier Development Practices: A Fuzzy Method

Today, manufacturing firms are demanding a higher level of performance from their suppliers. Manufacturing firms need to ensure that their suppliers are able to provide the best quality of materials, on time, at the right place and the right level of service. To achieve this objective, manufacturing firms may engage in supplier development (SD) program. However, the number of practices involved in SD is extensive. The management of a manufacturing firm should understand the roles and relationship between these practices, so that it may provide additional information on how to manage them. Thus, this paper proposed a model for evaluating and selecting supplier development practices using an integration of fuzzy logic and Analytical Hierarchy Process (AHP). Experts' decision making is used in the process of developing the model. The result suggested that practices associated with transferring knowledge have the highest priority. The results obtained can be referred by manufacturing practitioners as guidelines of seeking the opportunity to implement SD program in enhancing the capabilities of suppliers who contribute to the movement of a supply chain in achieving the greater performance of manufacturing sustainability and responsiveness.

Understanding the adoption of socially responsible supplier development practices using institutional theory: Dairy supply chains in India

Supplier development (SD) initiatives play an important role in building buyer-supplier capacities to deal with social and economic performance. The aim of this paper is to explain the motivations behind the adoption of similar SD strategies to address sustainability (particularly social issues) occurring in local supply chains of a developing country. We compare the economic and social variants of institutional theory to investigate whether efficiency or legitimacy seeking drives the adoption (and copying) of SD practices. Twelve case studies involving private and cooperative dairies were conducted in India via semi-structured interviews. Findings revealed that both private and cooperative dairies adopt similar SD practices to build supplier capabilities and improve social and economic performance of buyers and suppliers. Private dairies imitate SD practices of the cooperatives to survive the competition; i.e., economic performance is the main reason behind their isomorphism. Cooperatives, on the other hand, take up SD practices more for legitimacy and even philanthropic reasons; though also partly note the long-term economic benefits from developing the supplier community. These findings can be used both by practitioners and researchers to gain valuable insights into the reasons driving organisational isomorphism in social sustainability practices from a developing country perspective, something rarely done so far in the literature.

Strategies for Buyer Supplier Relationship Improvement: Scale Development and Validation

It is not possible for an Own Equipment Manufacturer to manufacture all components in house, due to which need of out sourcing of some components/process to supplier base occurs. For being competitive in market supplier base of buyer should be self-efficient and developed one. This development of supplier can be achieved by implementing different supplier development practices as per the requirement. Now days along with supplier development, relationship improvement between buyer and supplier plays a vital role for taking competitive advantages. In this article a frame work of achieving buyer supplier relationship improvement through development of a supplier is discussed and scale required for measuring all construct is being validated. To examine the impact of buyer supplier relationship improvement through supplier development practices and buyer supplier relationship practices, a survey was conducted for manufacturing companies mainly including Auto Ancillaries, Engine Manufactures, Generator Manufactures and Machine Tool Manufactures. Researcher approached 628 respondents, out of which 536 respondents showed interest to response, data from 512 respondents were used as 24 respondents filled information incompletely. Reliability Analysis, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) are applied for reliability and validity of scale with use of SPSS and AMOS software. The multi-item scale shows strong evidence of reliability and validity.

Supplier Development Success Factors In Iindian Manufacturing Practices

The purpose of this paper is to find out current supplier development practices employed by different organization. Paper mainly focuses on supplier development, supplier development activities, programs, critical elements and beneficial move by buyer. Importance of relationship development and factors responsible for it long with current gaps in this field is discussed in brief.

Supplier Development Practices for Sustainability: A Multi‐Stakeholder Perspective

AbstractSupplier development for sustainability is a critical element of sustainable supply chain management and requires extensive multi‐stakeholder collaboration. This article establishes a conceptual four‐stage framework to analyse the collaborative mechanisms of supplier development practices, and presents an exploratory, qualitative analysis to identify the major contributors of sustainable supplier development practices, such as NGOs, industrial associations, consulting firms etc. Based on semi‐structured interviews about 63 organizations from different regions and industries, this article identifies three types of contributor: drivers, facilitators and inspectors. Instead of traditional stakeholder engagement processes, these contributors actively collaborate with buying firms and suppliers to design, implement and evaluate sustainable supplier development programs. The article then provides a matrix to describe the supply chain coverage and supplier performance of supplier development practices, given the absence or positive involvement of facilitators and inspectors. We conclude our study by suggesting future research directions as well as discussing managerial implications. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment