Supply chain decision making supported by an Open books policy

Based on a study of a buyer–seller relationship in the automotive industry, this article identifies 17 different decision-making processes where openly sharing cost data—a so-called open books policy—plays an important supporting role. These processes relate to supplier selection, various activities that occur prior to production, and the full-speed production stage of the exchange process. Overall, open books plays the greatest role in the pre-production stage, although it is found to support decision-making relating to supplier selection and decision-making during full-speed production to a greater extent than the literature recognizes

Knowledge Communication in Product Development Projects

During the last decades, a number of studies have been concerned with com-munication related to new product development. These have looked at either intra-organizational communication between departments or communication between new product development teams and external stakeholders such as customers or suppliers. Only little research, however, has combined internal and external stakeholder communication and explored the role of technology uncertainty on communication. The purpose of this study is to examine how technology uncertainty affects project manager communication behavior during new product development. We carried out an embedded case study of a major NPD project in the automation industry. The findings indicate that technology uncertainty is positively related to communication frequency between project manager and project stakeholders during the early phase of NPD project. In addition we found a negative association between technology uncertainty and the breadth and depth of communication between project manager and stakeholders in early phase of the NPD project. These findings indicate that under high technology uncertainty, managers of NPD projects modify their communication behavior not only with respect to how frequently they communicate with stakeholders, but also to which stakeholders they communicate and how deeply they engage different stakeholders in different phases of the new product development project.

A Decision Tool for Supplier Selection That Takes into Account Power and Performance

Companies select their suppliers to provide required performance while being successful partners. An important aspect of collaboration is the power relationship between the company and its suppliers. Although the significance of power in supplier selection is acknowledged, published work rarely includes assessment of power. An empirical study on selecting suppliers for new product developments in a major European diesel engine manufacturing company, supported by three smaller studies with electronic engineering companies, frames overall questions regarding the importance of incorporating power into supplier selection and how this might be achieved. This research proposes an approach that assesses both performance and power and integrates the assessment results by modelling the relative effects of power and performance. It positions the suppliers into six scenarios (ideal, satisfying, tolerable, unfavourable, risky and tough) which depict to what extent a supplier is ‘suitable’ to work with. A reverse analysis reviews the relationship when several suppliers appear suitable. An assessment method is developed incorporating both subjective and objective data for qualitative and quantitative criteria. It combines two decision making methods, AHP and TOPSIS, with triangular fuzzy numbers. Multiple judgements from several decision makers are synthesised. This method is adapted for performance assessment of single, group and cross-group suppliers. Weights are calculated for the criteria, and combined with calculations of supplier performance against each criterion to provide an overall assessment and supplier profile. Power is quantified against a set of power determinants and power relations (supplier dominance, buyer dominance and balanced) are determined. The effects of supplier perceptions (objective, optimistic and pessimistic) are estimated in the calculation. The proposed approach involves complex calculations and a prototype software tool is developed with graphical interfaces. The tool includes performance criteria and power determinants collected from literature and allows users to define new ones. Application to an agriculture case enables the sustainable performance of suppliers (farmers) to be evaluated and compared

How does past and present customer experience explain the satisfaction with the supplier? A fuzzy set qualitative comparative approach

This study applies complexity theory to understand the effect of past and present experience on satisfaction. Drawing from the appraisal of interaction theory, social exchange theory and organizational buying behaviour, we developed and empirically measured customer experience on satisfaction across the customers of the professional service providers in b2b. This study investigates the past and current experiences as key elements of customer satisfaction with suppliers. To examine the research propositions, this study employs confirmatory factor analysis (CFA) and fuzzy set qualitative comparative analysis (fsQCA), using a sample of 450 in the first wave and 260 in the second wave. The findings contribute to advancing the current knowledge of the literature by verifying different components of the construct of customer experience and its relative impact on satisfaction

Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications

Prioritizing Offshore Vendor Selection Criteria for the North American Geospatial Industry

The U.S. market for geospatial services totaled US $2.2 billion in 2010, representing 50% of the global market. Data-processing firms subcontract labor-intensive portions of data services to offshore providers in South and East Asia and Eastern Europe. In general, half of all offshore contracts fail within the first 5 years because one or more parties consider the relationship unsuccessful. Despite the high failure rates, no study has examined the offshore vendor selection process in the geospatial industry. The purpose of this study was to determine the list of key offshore vendor selection criteria and the efficacy of the analytic hierarchy process (AHP) for ranking the criteria that North American geospatial companies consider in the offshore vendor selection process. After the selection of the initial list of factors from the literature and their validation in a pilot study, a final survey instrument was developed and administered to 15 subject matter experts (SMEs) in North America. The SMEs expressed their preferences for one criterion over another by pairwise comparisons, which served as input to the AHP procedure. The results showed that the quality of deliverables was the top ranked (out of 26) factors, instead of the price, which ranked third. Similarly, SMEs considered social and environmental consciousness on the vendor side as irrelevant. More importantly, the findings indicated that the structured AHP process provides a useful and effective methodology whose application may considerably improve the quality of the overall vendor selection process. Last, improved and stabilized business relationships leading to predictable budgets might catalyze social change, supporting stable employment. Consumers could benefit from derivative improvements in product quality and pricing

A simulation based supply partner selection decision support tool for service provision in Dell.

Partner selection is an important aspect of all outsourcing processes. Traditional partner selection, typically involves steps to determine the criteria for outsourcing, followed by a qualification of potential suppliers and concluding with a final selection of partner(s). Reverse auctions (RAs) have widely been used for partner selection in recent times. However, RAs, although proven successful in initial price reduction strategies for product and service provision, can suffer from reduced effectiveness as the number of executions increases. This paper illustrates Dell’s experience of such diminishing returns for its outsourced after sales product repair service and presents the development, of a new partner selection methodology which incorporates a new process improvement stage to be executed in combination with the final selection phase. This new methodology is underpinned by the development of a computer based simulation supply partner selection decision support tool for service provision. The paper highlights the significant additional cost saving benefits achievable and improvement in service through the use of advanced simulation based decision supports

The Role of Knowledge Management in Supply Chain Management: A Literature Review

Purpose: The aim of this paper is to examine the state of knowledge management research in supply chain management from three standpoints, methodological approach, supply chain management area, and knowledge management processes. Design/methodology/approach: To achieve this, a systematic review is conducted over the period 2000-2014 on the basis of a qualitative content analysis. Findings: Major results showed that knowledge management can be viewed as a leverage mechanism for: (i) supply chain integration; (ii) the enhancement of intra and inter-relations across the supply chain; (iii) supply chain strategy alignment; and (iv) the reinforcement of knowledge transfer in product development. Some supply chain management areas such as reverse logistics, inventory management, forecasting/demand planning, outsourcing, and risk management have been explored only to some extent. Furthermore, knowledge transfer is being studied in the majority of the articles, mainly by both case study and survey approach; mathematical models and simulation techniques are used in very limited articles. Findings concerning theoretical perspectives and managerial issues are also described. Research limitations/implications: The limitation of our study encompasses the aspects of search period (2000-2014), selection of search databases (Web of Science and SCOPUS and language selection (English). Practical implications: The exhibition of the KM processes within the SC context may help practitioners and managers interested in implementing KM initiatives to replicate the methodologies in order to increase the possibilities of a successful KM adoption. Originality/value: The systematic review will contribute to the understanding of the present state of research in the knowledge management theory, with focus on the supply chain, as there are no state-of-knowledge studies that report a systematic literature review approach.Peer Reviewe