Supplier Relationships Research Articles

The varying use of online supplier portals in auto parts‐automotive value chains and its implications for learning and upgrading: The case for the Mexican and Turkish suppliers

AbstractThis article examines the use of online supplier portals (OSPs) in managing lead firm–supplier relations in global auto parts‐automotive value chains (AACs) from suppliers’ point of view, and the implications of OSP usage for upgrading prospects of suppliers from middle‐income countries. The research is based on interviews with representatives of 33 auto parts suppliers and stakeholders of the auto parts‐automotive industry from Turkey and Mexico. The article has three main findings. Firstly, the use of OSPs is not the same across AACs and depends on the existing governance structures in these chains. Secondly, OSPs are used more in AACs with loose governance structures while their usage decreases as supplier–buyer coordination increases, which contrasts the mainstream expectations. Thirdly, the use of OSPs is not transforming the governance structures or implications of these structures for suppliers but rather reinforces the existing dynamics in these aspects.

Procurement Competence and Framework Agreements for Upgraded Bed Bug Control [Cimex lectularius (Hemiptera: Cimicidae)

The prevalence of bed bugs (Cimex lectularius L.) is increasing worldwide. Due to this increase, low-income housing owners and managers need an efficient method for controlling the pests without excessive resource use. The quality of pest control efforts is crucial for efficient eradication. Infestations often need to be approached using a variety of strategies through an integrated pest management (IPM) framework. Efficient eradication is often thought to be the responsibility of the pest control contractor alone. However, the purchase and supply management theory suggests that optimal solutions actually involve sound buyer–supplier relations to support the strategic aim of pest eradication. This study illustrates the positive outcomes of elevating pest management competence on the buyer’s part. Further, this study outlines a large-scale purchase situation that quantifies bed bug control efforts, in addition to their outcomes. In total, 11,000 apartment units were observed in Oslo, Norway, over a period of six years. The release and implementation of a procurement officer together with a state-of-the-art pest management framework agreement quickly reversed the consistent escalation of bed bug infestations in the observed units. Observations revealed that the study yielded the most success in eradicating bed bugs by increasing both the number of visits to the infested apartment and the overall duration of control efforts. The improved control was achieved at a reduced cost per infested apartment unit, which allowed for the implementation of bed bug preventive measures and building-wide inspections. The observations made in this study have been discussed in the context of the impact of bed bugs in low-income communities, relative to the factors of pest burden, demography, socioeconomics, and the welfare system in Norway.

How Switching Costs with Process Monitoring and Operational Integration Affect Sustainable Supplier Relationship

Building on sustainable supply chain management and operations strategy literature, our study seeks to identify structural relationships between switching cost and sustainable supplier relationships from a demand-side perspective. More specifically, this study looks at the impact of the switching cost on process monitoring, operation integration, and sustainable supplier relationships. To test the structural relationships in our research model, we used Manufacturing Productivity Survey data from Korea to conduct an empirical analysis based on 351 data that fit our study’s purpose. The results show that the indirect effect of switching cost on sustainable supplier relationships through process monitoring and operational integration is positively valid. Additionally, the results emphasize that the social exchange theory can be explained in the perspective of the switching cost.

GLOBAL SUPPLY CHAIN RELATIONSHIP, LOCAL MARKET COMPETITION, AND SUPPLIERS’ INNOVATION IN DEVELOPING ECONOMIES

This article examines how suppliers’ innovation in developing countries is affected by the interaction of vertical global supply chain relationships and horizontal market competition structure. We devised a bidirectional dynamic game model consisting of competing suppliers in a developing economy and an overseas buyer in a developed economy for innovation decision process in a suppliers cluster. Our research shows that global supply chain relationship is the primary factor to influence local cluster innovation and profit. Total innovation of the cluster is proved to be greater in global supply relationship with a powerful buyer than a non-powerful buyer. However, suppliers in a powerful buyer chain are not able to capture the value they created from innovation. Local competition structure plays its secondary role on cluster innovation through interaction with vertical chain relationship. Based on prior innovation research on either vertical supply chain power dynamics or horizontal competition intenseness, our study contributes as the first to employ a theoretical suppliers’ innovation model for an integrative analysis encompassing both global and local power dynamics.

Supply Chain Practices and Marketing Performance of SMEs: A Field Study on Furniture Manufacturing in Egypt

The study aimed to investigate the effect of supply chain practices on the marketing performance of small and medium-sized furniture manufacturing enterprises in Egypt. The study applied to 67 enterprises in Damietta, Egypt. Accordingly, the study population was represented by two top directors of furniture companies either. Two 39-item- questionnaires of a five-point Likert-type scale were used for each enterprise with a total of 134 questionnaires. Internal consistency of 120 valid questionnaires by using Pearson correlation revealed that the questionnaire was stable and valid. Descriptive statistics for all items of the questionnaire were carried out. The relationship between supply chain practices and marketing performance by Pearson correlation revealed there was a positive relationship between supply chain practices parameters; (supplier relationship management, intermediaries and distributers' relationship management, and customer relationship management) and marketing performance. The correlation coefficients of marketing performance were 0.609, 0.539, and 0.794, respectively. Estimation of differences in supply chain practices and marketing performance by one-way ANOVA and T-test revealed significant differences (p < 0.05) in age and size of the capital of supply chain and job title and experience of marketing performance. In conclusion, this study provides the top managers in SMEs the power to make decisions under normal and abnormal circumstances, as in the COVID 19 crisis, which may be crucial in the survival and existence of SMEs.

Synergies in Hospitality: Exploring Strategic Partnership and Collaboration for Business Success

This research paper delves into the strategic dynamics of partnership and collaboration within the hospitality industry. Focused on enhancing business success, the study explores how synergies between stakeholders contribute to improved operational efficiency, guest experiences, and sustainable growth. By examining key areas such as supplier relationships, technology integration, marketing initiatives, and community engagement, the paper aims to provide valuable insights into the nuanced landscape of partnerships in hospitality. Through a concise yet comprehensive analysis, the research offers practical considerations and actionable recommendations for businesses aiming to leverage collaborative strategies for heightened competitiveness and customer satisfaction in the dynamic hospitality sector.

Performance Improvement through Value Stream Mapping – A Manufacturing Case Study

The successfulness of Value Stream Mapping (VSM) as a tool for taking a snapshot of the production flow efficiency is well established. The development of a large-scale visual map of processes and their interactions is beneficial for problem analysis and subsequent solution. Through VSM, managers gain a deeper understanding of the organization processes carried out in coordination with people in a system approach. A case study was conducted at a Small and Medium Enterprise (SME) in Pakistan which manufactures ceiling fan winding machines. The aim of this study was to explore the possibilities of shortening the lead-time, waste and highlight important strategies, steps which could be undertaken by management for improvement in productivity, cost and quality. The study maps the organization systematically through the use of VSM. The Lean Implementation Techniques (LIT) steps were followed with identification of value stream process, lean metrics, mapping of current state and proposing an improved future state value stream map. The intervention suggested is layout modification by reducing 7 stations to 6 stations and streamlining the operations. The layout modification results in lower defects, controlling overproduction, managing inventory buffers from a linear approach to an optimized level. This also resulted in reduction of processing time of each unit by around 19 % and the production lead time of 100 units by around 21%. This study through VSM proposes improvement by enforcing pull system, supplier relations, modifying layout and production processes, Just in Time (JIT) delivery of materials and parts, scheduling transport resources efficiently and reducing inventory buffers.

Improving supplier capability through training: Evidence from the Chinese Automobile Industry

Supplier training to develop and improve supplier capabilities to meet the needs of the Original Equipment Manufacturers (OEMs) is necessary for supply chain efficiency and effectiveness. In the absence of any comprehensive model for supplier training need assessment and measurement, in this paper, we first propose a supplier training model and then use the internationally accepted framework of MMOG/LE (Materials Management Operations Guidelines/Logistics Evaluation) to identify the supplier training needs and to design a supplier training curriculum for an OEM in the Chinese automobile industry. Then we adopt the MMOG/LE standards to assess the effectiveness of the proposed supplier training curriculum to improve the perceptions of supplier capabilities related to production and logistics management including sustainability and risk management topics. We found that supplier capabilities perceptions of the purchasing department of the OEM, average supplier capability scores, and the pass rates on the MMOG/LE standard test increased after the completion of the supplier training. Based on these findings, we conclude that supplier training can be used to improve supplier’s capability to meet the needs of the OEMs in improving their performance while contributing to the success of their suppliers at the same time. Thus, our proposed supplier training model development and effectiveness assessment framework can be supplemented with some existing analytical approaches to improve buyer–supplier relationship and enhance the profitability of each partner in a supply chain.

Renewable Energy Certificate Trading via Permissioned Blockchain

With the continuous advancement of the green certificate trading mechanism, information verification needs to span multiple departments, which causes the application process cumbersome and human errors. In order to solve problems of cumbersome issuance process of the renewable energy certificate (REC) and the inflexible pricing mechanism, in this paper, a hybrid REC trading system was proposed based on an permissioned blockchain technology (BT), which combined advantages of the BT and the continuous double auction (CDA). The operation process of the system was introduced in detail, and the view change protocol in the Practical Byzantine Fault Tolerance algorithm was revised according to the characteristics of the system to improve the system stability. The continuous double auction rule was also introduced in the system. And corresponding bidding strategies were designed to maximize the revenue of users (buyer and seller) and transaction probability. The simulation experiment proves that the bidding mechanism can flexibly adjust the REC price according to the supply and demand relationship. At the same time, the effectiveness and feasibility of trading rule and bidding strategy were also verified.

Designing relational sanctions in buyer–supplier relationships

AbstractThis paper explores the role of supplier performance measures (scorecards and others) in the internal design of relational contracts. We analyze a simple supplier–buyer repeated interaction in which incentives arise by the threat of terminating the relationship—temporarily or permanently. As the periods with no‐trade reduce the value of the relationship, the optimal relational contract minimizes the equilibrium punishment while preserving the supplier's incentives. We show that making the relational penalties conditional on additional supplier's performance measures increases total surplus. We also provide a rationale for “forgiveness” in relational contracting. The buyer may optimally forgive (decide not to sanction at all or to impose a lesser sanction) the supplier despite a bad outcome when some additional information is positive. We start with a binary performance measure, but we extend our analysis to more complex performance measures such as scorecards. Finally, we rank the scorecards in terms of their informativeness and we characterize the optimal investment in the design and improvement of these performance measures.

Ecolabnet service packages as a response to the needs of manufacturing enterprises in the SME sector of the Baltic Sea Region

Abstract Nowadays, the competitiveness of the economy, which is determined to a large extent by the innovative activities of enterprises and institutions, is of great importance for economic development. An important type of innovation is eco-innovations. Eco-innovations are currently a very timely topic undertaken by researchers, but also an important element of the activities of many companies. As a network of service providers for eco-innovations in small and medium-sized manufacturing enterprises, ECOLABNET fits perfectly in this trend. It aims to support, enable and empower companies to undertake sustainable eco-innovation activities in the Baltic Sea Region and beyond. The aim of this publication is to present the results of research on the eco-innovation needs of SME enterprises of the Baltic Sea countries and potential collaboration in this field with external entities. The services developed as packages of eco-innovation services in Ecolabnet that can meet the identified needs were indicated. The survey was conducted between March and May 2019 and covered SMEs in six countries: Poland, Lithuania, Estonia, Sweden, Finland, and Denmark. The subjects of the study were manufacturing companies that improve their products or services. The aim of the research was to gain an understanding of the needs and challenges related to eco-innovation in the context of sustainable development, to identify the future eco-innovation needs of manufacturing SMEs and collaborations with external actors, and to determine how and through which services the Ecolabnet can meet these needs and contribute to the growth of the enterprise. The manufacturing enterprises in this survey were motivated to eco-innovate. However, they lack knowledge on eco-innovation in its broadest sense, and therefore, urgently need the help of external experts, business partners, and networks in this area. The survey covered three areas: Business, Development, and Technology/Production. Business topic areas that entrepreneurs placed a high emphasis on were: branding and communication, supplier relations, customer insights and financial aspects. Within the needs in terms of development put most emphasis on product design, process development, bio-based materials and biodegradable materials. In the last category of identified needs Technology/Production respondents indicated increasing process efficiency, energy optimization and material efficiency. The research results also indicate that product design as well as branding and communication are urgent needs in the field of external expertise. Of the potential needs, the respondents also indicated customer insights, other alternative materials, business models, value chain assessment, and service design.

Artificial neural networks for intelligent cost estimation – a contribution to strategic cost management in the manufacturing supply chain

ABSTRACT In today’s complex supply networks sharing information between buyers and suppliers is critical for sustainable competitive advantage. In particular, for both business partners, cost information is highly relevant in purchasing situations. According to empirical studies in literature, artificial neural networks (ANNs) are expected to have a great potential to reveal cost structures by machine learning (ML). In digitally enabled supply chains this information can contribute to cost reduction and operational excellence and lead to win-win situations in supplier relationship management. Nevertheless, authors do not thoroughly investigate how ANNs may support cost estimation for purchasing decisions. Based on a case study from the automotive industry, we evaluate ANNs regarding their capability to gain cost structure data. In an additional comparative study, we benchmark ANNs for cost estimation in purchasing against other promising ML algorithms. Thereby, we apply the cross-industry standard process model for data mining projects. The findings of the studies show that some ML algorithms outperform ANNs regarding accuracy. The research results give indications for choosing the ML approach that promises the best outcome for cost estimations and cost structure information to support decision-making in buyer–supplier relationships.

Building greener motorhomes: How dual‐purpose technical and relational capabilities affect component and full product innovation

AbstractResearch SummaryThis study investigates how dual‐purpose technical and relational capabilities influence two types of product innovation: component and full product. We consider product modification, manufacturing, supplier relationship, and customer relationship capabilities, analyzing their interactions and interrelationships through an inductive study set in the motorhome industry. We find patterns between capabilities and types of product innovations and then use a descriptive qualitative comparative analysis to refine and explore the nuances of these relationships, uncovering combinations of capabilities that enable and inhibit different types of product innovation. We thus provide empirical evidence for how dual‐purpose capabilities are deployed dynamically, in that skills can be used in both the normal course of business and to create something new.Managerial SummaryFirms strive to innovate and create new full products and new components. Skills related to innovation include product modification, manufacturing, supplier management, and customer relations, all of which are also important for normal activities. While an adequate level of these capabilities can support the day‐to‐day business, a superior level is required to innovate. Our study of the motorhome industry indicates that supplier management is most important for component innovation and manufacturing expertise is most critical for full product innovation. However, we also find that a lack in some capabilities can be compensated for by superior capabilities in other areas, which could be important in situations of scarce resources and shows different possible paths toward product innovation.

Strategies for achieving customer order flexibility – supplier perspective

PurposeThe purpose of this study is to develop a framework of strategies to achieving customer order flexibility in and related to the order-to-delivery (OTD) process. The purpose is also to investigate how companies prioritize various strategies to achieve customer order flexibility.Design/methodology/approachBased on a literature review, pre-tests and conceptual reasoning, a conceptual framework of strategies related to the order-to-delivery process was developed. The strategies were linked to the order quantity and delivery lead-time flexibility dimensions. This structure resulted in six groups covering enabling as well as remedial strategies. An empirical interview study of ten customer–supplier relationships was conducted.FindingsThe interviews identified additional strategies, thereby expanding the framework. The enabling strategies with the highest median values were “have continuous contact with the customer's purchaser” and “use safety stock of raw materials/semi-finished products”. The remedial strategy with the highest median was “re-plan/re-prioritize the order backlog”. In the delivery sub-process, it was more common to apply remedial strategies for delivery lead-time than for order quantities.Research limitations/implicationsThe developed framework is a contribution to the literature on operational flexibility in and related to the OTD process. It complements existing knowledge by taking a supplier perspective.Practical implicationsSuppliers can use the framework as a tool to understand and systematically achieve better customer order flexibility in and related to the OTD process. Customers can use the framework as a checklist for supplier evaluation and supplier development.Originality/valueFew identified studies include empirical data on customer order flexibility.

Construction and optimization of inventory management system via cloud-edge collaborative computing in supply chain environment in the Internet of Things era.

The present work aims to strengthen the core competitiveness of industrial enterprises in the supply chain environment, and enhance the efficiency of inventory management and the utilization rate of inventory resources. First, an analysis is performed on the supply and demand relationship between suppliers and manufacturers in the supply chain environment and the production mode of intelligent plant based on cloud manufacturing. It is found that the efficient management of spare parts inventory can effectively reduce costs and improve service levels. On this basis, different prediction methods are proposed for different data types of spare parts demand, which are all verified. Finally, the inventory management system based on cloud-edge collaborative computing is constructed, and the genetic algorithm is selected as a comparison to validate the performance of the system reported here. The experimental results indicate that prediction method based on weighted summation of eigenvalues and fitting proposed here has the smallest error and the best fitting effect in the demand prediction of machine spare parts, and the minimum error after fitting is only 2.2%. Besides, the spare parts demand prediction method can well complete the prediction in the face of three different types of time series of spare parts demand data, and the relative error of prediction is maintained at about 10%. This prediction system can meet the basic requirements of spare parts demand prediction and achieve higher prediction accuracy than the periodic prediction method. Moreover, the inventory management system based on cloud-edge collaborative computing has shorter processing time, higher efficiency, better stability, and better overall performance than genetic algorithm. The research results provide reference and ideas for the application of edge computing in inventory management, which have certain reference significance and application value.

Circular Economy and the evolution of industrial districts: a supply chain perspective

Circular Economy promises to achieve sustainability by decoupling economic growth from resource extraction and environmental losses. However, it requires a systemic change in the design of products, business models and supply chains. In this study the evolution of the supply chain structure and relationships is addressed in the specific context of industrial districts – i.e., agglomerations of small and medium-sized firms territorially concentrated and specialised in one or more phases of a production process – undergoing a transition to Circular Economy. Through the study of the textile industrial district in Prato (Italy), this study addresses two topics that have been limitedly investigated in the literature. First, the potential role of Circular Economy in revitalising an industrial district in a decline phase. Second, how supply chain structure and relationships should evolve in an industrial district transitioning to Circular Economy. This study outlines the causes triggering industrial districts decline and discusses the factors that can induce a Circular Economy based re-organisation of industrial districts. Consequently, we provide insight to managers on how to successfully couple Circular Economy and technological or business model innovations with supply chain management practices. We also provide indications to policymakers on how local and regional actors can support a Circular Economy driven reorganisation of industrial districts. Finally, this study links contributions concerned with the Circular Economy transition, supply chain structure and relationships and evolution trajectories of industrial districts, thus paving the way for a deeper understanding of the interplay among these phenomena.

How the breadth and depth of import relationships affect the performance of Canadian manufacturers

AbstractThis paper examines the relationship between a manufacturing firm's import behaviour and its performance. The focus is on two aspects of imports, input variety and the dynamics of import relationships. Using identification conditions borrowed from the production function estimation literature, we show that firms importing more products from a larger set of suppliers tend to be larger, more productive and more successful in export markets. Not only does the number of supply relationships matter but also the duration. Firms maintaining a higher share of continuous supply relationships also benefit from size and productivity effects. These results suggest that the breadth and depth of the import network are relevant factors for the performance of Canadian manufacturers, underscoring the importance of pursuing trade liberalizations with new partners and trade facilitation with established sources of suppliers.

Supply chain security evaluation model and index system based on a 5G information system.

Currently, the supply chain management model has been widely adopted worldwide. Internationally renowned companies such as IBM and Walmart have made significant achievements in supply chain management and have played a greater role in promoting the growth of their interests. However, while they are enjoying their own interests, they are also facing various risks in the supply chain. From the perspective of systems engineering, this paper uses complex network theory as a research tool to study supply chain networks and systematically study the important issues of supply chain network risks. This paper analyzes the new characteristics of the relationship between enterprises and suppliers in the supply chain and which indicators should be selected as the basis for evaluating suppliers from the perspective of cooperation and development, which more comprehensively reflects the characteristics of the new enterprise–supplier relationship in the supply chain environment. This highlights the evaluation of the supplier’s cooperation ability and development ability. Aiming at the problem of supply chain network system identification and integrated evaluation, a supply chain security evaluation model and index system research framework model are proposed, and the intercompany business risk and supply chain in supply chain network evaluation are introduced. As a model for evaluating transition parameters, the study of supply chain risk propagation introduces the theory of dynamic propagation in complex networks, the law of evolution, and the supplier's dynamic supply chain risk model. The experimental results of this paper show that when the global reputation value is 0.5 and the local reputation value is 0.8 and 0.7, the trust degree changes with the change of the confidence factor; when the value of the confidence factor decreases, the degree of trust converges more and more to the global reputation and vice versa. It can be seen that this model has high feasibility.

Quality intervention, supplier performance and buyer–supplier relationships: evidence from the garment industry

PurposeThis study investigates the impact of a buyer-assisted quality intervention on suppliers' quality performance and buyer–supplier relational dynamics in the garment industry.Design/methodology/approachThis study employed a multiple-embedded case study following a qualitative research approach. The study used data from buyer-assisted quality interventions in sewing lines of four garment supplier factories. Qualitative data were collected through semi-structured interviews of buyer's representatives at their office and senior managers, line inspectors, supervisors and workers in supplier factories. In addition, data related to product quality was obtained from quality check sheets and observations on the shop floor. Data were analysed using qualitative data analysis techniques.FindingsThis study demonstrates that a buyer-assisted quality intervention improves product quality performance by reducing quality defects in targeted garment products resulting in improved buyer–supplier relationships. Moreover, this study identifies the lack of a systematic approach in quality control as a key reason for poor product quality.Research limitations/implicationsThe study adds knowledge to the literature on quality improvement and buyer–supplier relationships by analysing buyer-assisted quality interventions in the garment industry in Bangladesh. The study demonstrates that buyer's assistance and adopting a systematic approach in quality control can significantly improve product quality in the garment industry.Practical implicationsThis research can help the quality assurance managers in buyer and supplier firms understand the significance of quality interventions and systematic quality control approach to decrease product quality defects and ensure smooth buyer–supplier relationships.Originality/valueThe study adds new knowledge on the link between buyer-assisted quality interventions, systematic quality control and product quality in garments factories in Bangladesh.

Implementasi Metode Analytical Hierarchy Process (AHP) untuk Evaluasi Pemasok Daging Sapi (Studi Kasus: Restoran Nominomi Delight, Jakarta)

The purpose of this research is to develop a performance appraisal method to get the priority order of four restaurant beef suppliers based on the weight of the selection criteria and by showing the indicators of each criterion, using the Vendor Performance Index and the Analytical Hierarchy Process (AHP) method. There are seven main criteria for assessing supplier performance, namely quality, cost, delivery, flexibility, responsiveness, solutions, and relationships which are then translated into thirty-eight sub criteria or indicators. With the AHP method, weights obtained from the seven criteria in the order of quality (0.371), cost (0.256), delivery (0.101), solution (0.078), flexibility (0.070), responsiveness (0.069), and relationship (0.055). The results of supplier selection based on the AHP method obtained the weight in the order of priority of suppliers, namely PT Sukanda Djaya (0.377). PT Indoguna Utama (0.349). Santosa Agrindo (0.146), and Amino Meat (0.128).