Investigating the Impact of Procurement Alignment on Supply Chain Management Performance

AbstractThe increasing emphasis that organizations are placing on purchasing and supply chain management over the past decade, has set the spotlight on the potential of procurement systems. However, the majority of studies still examine IT adoption enablers despite the fact that procurement systems are perceived as a commodity in modern enterprises. Studies that examine the post-adoption conditions that facilitate performance gains in the supply chain management domains still remain scarce. In this paper we investigate the effect of business/IT-alignment within the procurement domain in order to determine if it affects procurement performance. Additionally, we examine the impact that supply chain management governance centralization has in attaining procurement alignment. In order to answer these questions, a sample of 172 European companies was analyzed by means of Partial Least Squares (PLS) modeling. Our results empirical support our hypotheses that procurement alignment leads to increased performance over time and in relation with competitors, with the effect of the former being greater than the latter. Additionally, we find that contrary to empirical evidence supporting the statement that a decentralized structure enables e-procurement adoption, governance centralization of supply chain management decisions fosters procurement alignment

Application of E-SCM Strategies to Enhance Efficiency and Effectiveness in the Clothing Retail Sector

In this globalized era, world business setup has been changing. With the growing impact of information technology, contemporary consumers are increasingly adopting online resources to shop both on and offline. To meet this changing consumer habit, supply chain management has to shift its traditional linear sequence structure to agile, prompt, cost effective and real-time information integrated process to respond to worldwide consumer promptly. Information technology in the form of e-business enhanced this overall function of SCM. Through the increasing implementation of information integrated SCM or E-SCM application, now firms are capable to access themselves in the real time information about the consumer demand. Logistics management, which was always been an immense challenge for supply chain parties to manage has become an efficient process through information integrated ware house management. Therefore, in this growing era of information technology, the paper aims to investigate how e-SCM strategy, focusing on e-logistics, enhances the overall business performance taking cloth industry as an example. To do that E-SCM strategy has been described in perspective of e-fulfillment, e-procurement, e-distribution and e-transportation. Keyword: E-SCM, e-logistics, information integration, e-procurement, e-distribution, e-fulfillment, e-transportatio

To Greener Pastures: An Action Research Study on the Environmental Sustainability of Humanitarian Supply Chains

Purpose: While humanitarian supply chains (HSCs) inherently contribute to social sustainability by alleviating the suffering of afflicted communities, their unintended adverse environmental impact has been overlooked hitherto. This paper draws upon contingency theory to synthesize green practices for HSCs, identify the contingency factors that impact on greening HSCs and explore how focal humanitarian organizations (HOs) can cope with such contingency factors. Design/methodology/approach: Deploying an action research methodology, two-and-a-half cycles of collaboration between researchers and a United Nations agency were completed. The first half-cycle developed a deductive greening framework, synthesizing extant green practices from the literature. In the second and third cycles, green practices were adopted/customized/developed reflecting organizational and contextual contingency factors. Action steps were implemented in the HSC for prophylactics, involving an operational mix of disaster relief and development programs. Findings: First, the study presents a greening framework that synthesizes extant green practices in a suitable form for HOs. Second, it identifies the contingency factors associated with greening HSCs regarding funding environment, stakeholders, field of activity and organizational management. Third, it outlines the mechanisms for coping with the contingency factors identified, inter alia, improving the visibility of headquarters over field operations, promoting collaboration and resource sharing with other HOs as well as among different implementing partners in each country, and working with suppliers for greener packaging. The study advances a set of actionable propositions for greening HSCs. Practical implications: Using an action research methodology, the study makes strong practical contributions. Humanitarian practitioners can adopt the greening framework and the lessons learnt from the implementation cycles presented in this study. Originality/value: This is one of the first empirical studies to integrate environmental sustainability and HSCs using an action research methodology

Supply Chain Engagement Through Relationship Management?

Many studies carried out in relation to construction procurement methods have revealed evidence that there needs to be a change of culture and attitude in the construction industry, moving away from traditional adversarial relationships to cooperative and collaborative relationships. At the same time there is also increasing concern and discussion on alternative procurement methods, involving a movement away from traditional procurement systems. Relational contracting approaches, such as relationship management, are business strategies whereby client, commercial participants' and stakeholders' objectives are aligned. This paper reviews a range of relationship management project case studies undertaken between public and private organisations in Queensland, Australia and reports on the critical factors identified that influence the success of relationship management projects. The research takes place within the context of the supply chain and reflects attempts by a government agency to engage the supply chain through relationship management approaches. The advantages accruing from engagement include community benefit, added value and innovation. Relationship management is a system that provides a collaborative environment and a framework for all participants to adapt their behaviour to project objectives and allows for engagement of those subcontractors and suppliers 'down the supply chain'. It is about open communication, sharing resources and experiences, exposing the 'hidden' risks in the project for the benefit of all participants. The case studies suggest that leadership has a strong influence on the relationship management climate which needs to be facilitated and nurtured. Commitment and action by the senior management (and, so, parent organisations) can have a strong impact on the team and relationship management culture, indicating relationship management has a high chance of failure when there is inadequate support from top management. Like all relational contracting approaches, trust between relationship management partners is important. The authors conclude that without a positive approach to relationship management a sustainable industry and continuous improvement are not possible. So, the authors postulate that a 'sustainable supply chain' is essentially tautological without the existence of a clear relational vision that leads to both soft and hard infrastructure to assist and inform decision making and encourage relationship building. An example of this is discussed at the end of the paper

A supplier selection strategy within the Malaysian telecommunications industry

The telecommunication industry in Malaysia has grown rapidly over the last 15 years, with effective supply chain management becoming increasing important within the sector. A multitude of providers and part owned Malaysian government companies, vendors and suppliers are involved in generating and creating value-adding products and services within this sector (across wireless, wireline, broadband business and consumer lines of business). This paper describes key challenges facing a major telecoms service provider in Malaysia with regards to drivers involved in the overall procurement and supplier selection with regards to components of performance management, decision-making, selection techniques, quality and cost management, procurement policy and procurement ethics. This paper further focuses on defining and detailing research currently being undertaken to develop a framework for identifying supplier selection drivers that are inherent within the sector and suggests a research approach to investigate and develop strategies for supplier selection for the telecommunications industry in Malaysia

Can procurement affect design performance?

There is an emerging view in the construction industry that better performance or better value for money can be achieved by integrating teamwork for planning, design and construction of building projects. There are though, two opposing perspectives regarding how changes in traditional design practices should occur. Advocates of sustainable construction in North America posit that it is a matter of evolving processes, moving from a sequential to an iterative approach to design, whereas the British government supports the view that a change in how projects are procured is required to transform the context that dictates relationships among the members of the team. The objective of the research is to study the influence of procurement on the performance of integrated design teams. It analyses, through case studies representing these two perspectives, the influence of procurement on the performance of integrated teams. The research is conclusive in that it is the context created by contractual relationship, and not the process set up for conducting integrated design, that most influence team efficiency. It demonstrates that traditional procurement processes reinforce socio-cognitive barriers that hinder team efficiency. It also illustrates how new procurement modes can transform the dynamics of relationships between the client and the members of the supply chain, and have a positive impact on team performance

The influence of a collaborative procurement approach using integrated design in construction on project team performance

Purpose – The purpose of the paper is to study the influence of procurement on the performance of integrated design teams. Design/methodology/approach – The research paradigm is based on Russian socio-constructivist approach to activity theory. Activity theory, as opposed to natural or social science, is a design science approach that focuses on the context aspect of project. A triangulation of qualitative research methods is used to investigate the dynamic of integrated teams in two different procurement contexts. Findings – The paper is conclusive regarding the influence of procurement on team efficiency. It demonstrates that traditional procurement processes reinforce socio-cognitive barriers that hinder team efficiency. It also illustrates how new procurement modes can transform the dynamic of relationships between the client and the members of the supply chain, and have a positive impact on teamperformance. Practical implications – The paper demonstrates first that problems with integrated design team efficiency are related to context and not process – they are not technical but socio-cognitive; second that fragmented transactional contracting increases socio-cognitive barriers that hinder integrated design team performance; third that new forms of relational contracting may help to mitigate socio-cognitive barriers and improve integrated design team performance, fourth that changing the context through procurement does not address the problem of obsolete design practices. Originality/value – The paper brings together theories of production in lean construction and social learning as a rival approach to traditional project management theory for demonstrating the importance of context on team performance

Policy, economic, and industry repercussions of current e-business diffusion rate In European food industry

European policy is focussed on promoting the business techniques and new ways of working which will provide the economic and social foundation of the information society in Europe. To help policy makers define their programmes, and to monitor the effectiveness of these policies, it is essential to examine progress as well as identify areas requiring active support. This study examined the repercussions of e-business progress in the food sector based on the findings of a large quantitative survey that investigated the extent, scope, nature of and factors affecting the speed of e-business development in Europe for the Food, beverages and tobacco sector. For this purpose a pan European survey was conducted by EU market observatory called “European e-Business Market Watch” during the period February and March 2003. This study is based on the findings and reports of “European e-Business Market Watch” which can be accessed in the Internet (www.e-businesswatch.org). This study discusses the economic implications for the individual enterprise, the industry structure as well as policy issues such as quality assurance, promotion of ICT education, training and “cultural” change. Regarding economic implications, e-business has played a indirect role because it has significantly involved only in Large Scale Enterprises which proportionally are a small percentage in food industry. For SMEs, the impact of e-business was mainly to the ICT facilities currently at their disposal: websites, the Internet, and e-mail. Regarding industry implications, e-business has not led to significant structural changes, but it has steamed up certain processes. E-business has armoured supply chain management with advanced but sophisticated network technologies. Regarding policy issues, an e-business solution capable of guaranteeing food safety to consumers and vertically integrating business operations across the supply chain would have a good chance of extraordinary diffusion in the food industry

Supply Chain Sustainability - The Role of Trust and Relationship

This action research project aims to improve economic, social and environmental sustainability of the pre-cast concrete and construction and demolition waste supply chains through the development, trial and evaluation of an innovative supply chain management strategy. The long-term goals are to improve competitive behaviour and market sector performance and improve business process efficiency and effectiveness of public sector program delivery by influencing policy development, changing organisational behaviour and implementation development to achieve economic, social and environmentally sustainable markets. In order to facilitate this, the culture change brought about by implementing relationship management in the supply chain is investigated and this paper reports on this aspect of the project