An analysis of some mistakes, miracles and myths in supplier selection

This paper analyzes some consequences of formal methods and procedures for supplier selection. It argues that many mistakes and miracles may occur in frequently used procedures. Practical examples are given. In the analysis it turns out that preventing these unwanted effects from occurring may be tackled by methodological improvements. Some examples and guidelines for these are given as well. But another important point lies in the perspectives of the actors in supplier selection: governments and industry policy makers, purchasers, suppliers and (management) researchers. The analysis shows that these different actors often operate from quite different and sometimes conflicting attitudes, assumptions and principles. On the one hand this analysis leads to the conclusion that using some sort of formal approach for supplier selection may be necessary. On the other hand it clarifies the criticism on such an approach and the difficulties associated with its use. The paper concludes with recommendations and implications for policy makers, researchers, and practitioners

Congruency fit: beyond performance in the auto supplier industry

The effects of manufacturing strategy (MS) and technology (T) on performance have been studied separately, but few studies have examined the relationship between MS and T practices clusters that improve effectiveness when implemented jointly, and even then they do not consider possible congruency between the two. This paper develops a congruency (selection) model to test for any interconnection between said clusters, without addressing causation or their combined effect on performance. The implicit outcome is that the plant will achieve a desirable effectiveness level. Through a wide-ranging survey of auto supplier plants, two approaches are considered: 1) grouping both clusters in pairs (canonical correlation analysis); and 2) a more general selection view version, with practices from both clusters related multidimensionally and subordinated by bivariate analysis (regression) to test for any congruent pattern. Both methods find a congruent relationship between manufacturing strategy and technology practice clusters, although the second provides greater detail.Ministerio de Educación y Ciencia DPI-2006-0553

Development Of Model For Supplier Selection And Order Allocation With Discount Pricing And Expected Quality Loss

This paper discusses the development of optimization model for supplier selection and order allocation considering price discounts and quality of the components that are measured based on expectation of quality loss cost. The approach which was used quadratic loss function to estimated quality loss. The development of model is based on the drawback of previous research; where quality was measured only by defective components without considered to any loss of quality due to deviation from quality characteristics target. In the section of results and discussion of this paper is presented a numerical example in order to illustrate the implementation of proposed model. This numerical experiment performed by optimization software has indicated that the model able to generated optimal solution. Keywords- optimization model, supplier selection, price, discount, quality los

Value-driven partner search for <i>Energy from Waste</i> projects

Energy from Waste (EfW) projects require complex value chains to operate effectively. To identify business partners, plant operators need to network with organisations whose strategic objectives are aligned with their own. Supplier organisations need to work out where they fit in the value chain. Our aim is to support people in identifying potential business partners, based on their organisation’s interpretation of value. Value for an organisation should reflect its strategy and may be interpreted using key priorities and KPIs (key performance indicators). KPIs may comprise any or all of knowledge, operational, economic, social and convenience indicators. This paper presents an ontology for modelling and prioritising connections within the business environment, and in the process provides means for defining value and mapping these to corresponding KPIs. The ontology is used to guide the design of a visual representation of the environment to aid partner search

Improving sustainability performance through supplier relationship management in the tobacco industry

Purpose: The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM). Design/methodology/approach: This study has adopted a single case study of an international tobacco company. The primary data involved semi-structured interviews with participants from the case company who are familiar with sustainable SRM in the tobacco industry and are engaging in various techniques to improve sustainability performance. Findings: The drivers for sustainable SRM commonly identified in literature are observable within the case company. There is also clear evidence of integrating sustainability in its SRM processes. However, the perception of sustainability as a requirement to meet stringent regulations limits its scope and drive in pursuing sustainable SRM. It has also limited supplier sustainability evaluation and performance metrics. Furthermore, the findings of this paper reinforce the importance of a procurement team’s ability to work with other functional teams in implementing sustainable SRM. The findings also contribute to the emerging literature on the impact of sustainability on supplier segmentation and multi-tier supplier management. Research limitations/implications: This study provides insight into the varying SRM methods used in the tobacco industry to ensure compliance and improve sustainability performance. However, further research is required to explore the generalisability of the findings of this study derived from a single case study. Originality/value: The tobacco industry is an under-researched industry, particularly in terms of sustainable operations and supply chain management practices. The findings of this study seem to be relevant to those comparable industries with stringent regulations as well

The ‘T-Shaped Buyer’: a transactional perspective on supply chain relationships

This paper challenges the normative view of interdependent buyer-seller relationships and provides a more holistic perspective of the contextual reality that shapes buyer behaviour. By proposing an innovative qualitative methodology, which focusses on boundary-spanning, pre-sales interactions, the research penetrates complex and commercially sensitive buyer-seller relationships. The longitudinal research design uses web-based diaries and follow-up interviews to explore conditions of power based interdependence between buyers and sellers. The ensuing data is mapped using qualitative content analysis and the results are aggregated graphically for assessment. Using this approach the study develops a nuanced view of the dominant patterns of buyer behaviour, and challenges the opinion that a search for competitive advantage will strengthen cooperative relationships in conditions of power based interdependence. The paper introduces the metaphor of the 'T-Shaped Buyer' to explain the empirical findings and, while acknowledging the contextual limits of the study, suggests that this metaphor may cause both academics and practitioners to reflect on normative thinking

Optimization of the supplier selection process in prefabrication using BIM

Prefabrication offers substantial benefits including reduction in construction waste, material waste, energy use, labor demands, and delivery time, and an improvement in project constructability and cost certainty. As the material cost accounts for nearly 70% of the total cost of the prefabrication project, to select a suitable material supplier plays an important role in such a project. The purpose of this study is to present a method for supporting supplier selection of a prefabrication project. The proposed method consists of three parts. First, a list of assessment criteria was established to evaluate the suitability of supplier alternatives. Second, Building Information Modelling (BIM) was adopted to provide sufficient information about the project requirements and suppliers&rsquo; profiles, which facilitates the storage and sharing of information. Finally, the Analytic Hierarchy Process (AHP) was used to rank the importance of the assessment criteria and obtain the score of supplier alternatives. The suppliers were ranked based on the total scores. To illustrate how to use the proposed method, it was applied to a real prefabrication project. The proposed method facilitates the supplier selection process by providing sufficient information in an effective way and by improving the understanding of the project requirements

Qualitative Case Studies in Operations Management: Trends, Research Outcomes, And Future Research Implications

Our study examines the state of qualitative case studies in operations management. Five main operations management journals are included for their impact on the field. They are in alphabetical order: Decision Sciences, International Journal of Operations and Production Management, Journal of Operations Management, Management Science, and Production and Operations Management. The qualitative case studies chosen were published between 1992 and 2007. With an increasing trend toward using more qualitative case studies, there have been meaningful and significant contributions to the field of operations management, especially in the area of theory building. However, in many of the qualitative case studies we reviewed, sufficient details in research design, data collection, and data analysis were missing. For instance, there are studies that do not offer sampling logic or a description of the analysis through which research out-comes are drawn. Further, research protocols for doing inductive case studies are much better developed compared to the research protocols for doing deductive case studies. Consequently, there is a lack of consistency in the way the case method has been applied. As qualitative researchers, we offer suggestions on how we can improve on what we have done and elevate the level of rigor and consistency