How supplier selection criteria affects business performance? A study of UK automotive sector

According to KPMG international (2015), global sales of automobiles are forecasted to reach 73.9 million vehicles and expected to hit 100 million units in the next two years. This shows that automotive sector has a tremendous growth potential and UK automotive sector is no different. However, in recent years the growing environmental awareness has become a major concern for automotive sector as they are faced with pressure of reducing carbon emissions as well as the costs. Suppliers play a significant role in achieving environmental goals set by organisations. Under these circumstances it is worth exploring the criteria that are used in assessing suppliers including the green aspects and how that affects the business performance. Design/methodology/approach: This research adopts a mixed method research approach. In order to collect the quantitative data a survey questionnaire was constructed and sent to automotive businesses listed in the FAME database. In order to triangulate the findings of this study, survey was complemented with in-depth interviews. Around 100 automotive manufacturers were invited for the survey however only 38 usable responses were received. In total seven semi-structured interviews were also conducted with people from different backgrounds and work experiences in the automotive sector. Findings: Literature identified delivery, cost, quality and technology as the supplier assessment criteria commonly used in assessing suppliers in automotive industries. Yet the issue of culture and green supply chain practices (GSP) were also widely concerned in several studies. The data analysis showed that delivery, quality, cost, technology, culture are correlated with exception of green supply chain practices. GSP was only found to be correlated with technology and cultural criteria. Semi-structured interviews suggest delivery and quality as the most important criteria when assessing supplier because of their greater impact toward business performance and reputation. Findings from all respondents also showed that most automotive manufacturers have already adopted environmental competency in their criteria. However, interviewees mentioned that this criterion does not take a major role in assessment compared with other criteria. The results also indicate that all factors studied do affect the business performance of automotive organisations. Value: This study contributes to the limited literature focused on assessing supplier selection criteria and business performance linkage in the UK automotive organisations. In addition, most studies on supplier selection and business performance ignore the green practices as important criteria which this study aims to address. Research limitations/implications: The study is based on the findings from a limited survey responses and semi-structured interviews. Having larger sample population would certainly improve the validity of the findings. The perspective of SMEs and large businesses with regard to each supplier selection criterion may be different hence the future research in this domain would also provide some valuable contributions. Practical implications: The survey responses indicate green supply practices as one of the important criteria in supplier selection. This suggests that automotive manufacturers should realize the importance of green practices while selecting their suppliers. This will help them to meet their own green goals while simultaneously meeting the government environmental.Ministry of Science and Technology, Taiwan ▪ Economic Development Bureau, Kaohsiung, Taiwan ▪ National Kaohsiung First University of Science & Tech, Taiwan ▪ National Taiwan Ocean University, Taiwan ▪ Taiwan International Ports Corp. Ltd. ▪ Jade Yachts Shipbuilding Co., Ltd. ▪ International Academy for Marine Economy and Technology, The University of Nottingham Ningbo Campus, China ▪ The Institute for Advanced Manufacturing, The University of Nottingham, U

Liquidity Risk and Banks’ Bidding Behavior: Evidence from the Global Financial Crisis

Even in countries that were not directly hit by the global financial crisis and where the banking system had a relatively strong liquidity position, there has been a negative spiral between the market and funding liquidity. The authors illustrate this on a case study of the Czech banking system. They construct indices of market and funding liquidity using daily market data, including data on banks’ bidding behavior in repo operations of the Czech National Bank. They find some evidence of a negative feedback effect between market and funding liquidity, especially after the collapse of Lehman Brothers in September 2008.funding liquidity, market liquidity, global financial crisis

Over- and underbidding in central bank open market operations conducted as fixed rate tender

Open market operations play a key role in allocating central bank funds to the banking system and thereby to steer short-term interest rates in line with the stance of monetary policy. Many central banks apply so-called “fixed rate tender” auctions in their open market operations. This note presents, on the basis of a survey of central bank experience, a model of bidding in such tenders. In their conduct of fixed rate tenders, many central banks faced specifically an “under”- and an “overbidding” problem. These phenomena are revisited in the light of the proposed model and the more general question of the optimal tender procedure and allotment policy of central banks is addressed. --open market operations,tender procedures,central bank liquidity management

Experimentation in securities market structure and regulation in China: from state to market

A key feature of the socialist market economy in China is the development of securities markets so as to facilitate entrepreneurship. With the national securities market now well established attention has shifted to the development of lower tier markets that may be able to meet the financing needs of smaller scale enterprises. In this article we examine how the concept of experimentation has been applied to the process of developing such markets and the regulatory framework in which they operate. We begin with a survey and critique of the policy and regulatory framework within which lower-tier markets have evolved. We argue that experimentation has been important in China but that it operates in a unique way as a result of the institutional structure in which securities markets are located. We then focus more specifically on the regulatory framework for lower tier markets and present two case studies focused on the establishment and operation of two local equity exchanges in a single province (LiaoNing). While this evidence supports our view on the significance of experimentation it also highlights the problems associated with developing lower-tier securities markets within the current policy framework

Decentralized Multi-Agent Production Control through Economic Model Bidding for Matrix Production Systems

Due to increasing demand for unique products, large variety in product portfolios and the associated rise in individualization, the efficient use of resources in traditional line production dwindles. One answer to these new challenges is the application of matrix-shaped layouts with multiple production cells, called Matrix Production Systems. The cycle time independence and redundancy of production cell capabilities within a Matrix Production System enable individual production paths per job for Flexible Mass Customisation. However, the increased degrees of freedom strengthen the need for reliable production control systems compared to traditional production systems such as line production. Beyond reliability a need for intelligent production within a smart factory in order to ensure goal-oriented production control under ever-changing manufacturing conditions can be ascertained. Learning-based methods can leverage condition-based reactions for goal-oriented production control. While centralized control performs well in single-objective situations, it is hard to achieve contradictory targets for individual products or resources. Hence, in order to master these challenges, a production control concept based on a decentralized multi-agent bidding system is presented. In this price-based model, individual production agents - jobs, production cells and transport system - interact based on an economic model and attempt to maximize monetary revenues. Evaluating the application of learning and priority-based control policies shows that decentralized multi-agent production control can outperform traditional approaches for certain control objectives. The introduction of decentralized multi-agent reinforcement learning systems is a starting point for further research in this area of intelligent production control within smart manufacturing

The Determinants of Suppliers’ Performance in E-Procurement: Evidence from the Italian Government’s E-Procurement Platform

Participation of small businesses in the market for public contracts is widely recognized as a key policy issue. It is also commonly held that the adoption of e-procurement solutions can be effective in pursuing such an objective. To this end, we analyze the transactions completed in the period 2004-2007 through the Italian Government’s e-procurement platform, that is, the marketplace managed by the Italian Public Procurement Agency (Consip S.p.A.). Although descriptive statistics indicate that micro suppliers are the most represented group of firms in the marketplace, our econometric treatment provides some evidence that the former are less successful than all other suppliers in getting public contracts. Degree of loyalty with buyers, location and the use of other MEPA negotiation tools, also emerge as relevant factors of success in the e-procurement market.E-Procurement, Small Suppliers, Request For Quotations, Performance, Public Contracts, Count Data