What multinational corporations with manufacturing plants in Northern Ireland and the Republic of Ireland are demanding from their suppliers

Abstract

Since the 1970s, international manufacturing companies, in pursuit of world‐class goals, have been adopting and adapting management practices developed originally in Japan. Notable characteristics of such companies now include: a customer‐focused culture; a concentration on core competencies with high levels of outsourcing; an emphasis on team working and manufacturing cells; low levels of stock at all stages of assembly; frequent small deliveries by suppliers directly to the production areas; a supply base of relatively few suppliers; partnership agreements with key first‐tier suppliers. Such companies are aiming to produce goods of world‐class quality and to do so, given the large amounts of bought‐in components and sub‐systems, pay a great deal of attention to the supply network. As a result, the purchasing function in these companies, as the interface with suppliers, plays a crucial role in manufacturing strategy. It is thus important to determine what multinational manufacturing companies want from their suppliers, ie what constitutes the “total package” that they want to have supplied? To this end, a total quality‐based 15‐criteria model of this package was developed and pre‐tested with senior purchasing managers from multinational corporations (MNCs). Based on this model a survey of senior purchasing managers of 170 MNCs throughout Ireland was undertaken and this paper reports on the results from the 62 usable returns.

Citation

McAleer, E., McIvor, R., Humphreys, P. and McCurry, L. (2000), "What multinational corporations with manufacturing plants in Northern Ireland and the Republic of Ireland are demanding from their suppliers", Journal of Small Business and Enterprise Development, Vol. 7 No. 4, pp. 363-373. https://doi.org/10.1108/EUM0000000006853