There is no great reservoir of literature available to the serious student of that part of management sciences known as purchasing. Although there are a number of textbooks…
Abstract
There is no great reservoir of literature available to the serious student of that part of management sciences known as purchasing. Although there are a number of textbooks prepared by academics in purchasing, much of the authorship of other purchasing‐related literature has been undertaken by practitioners and academics in the field of marketing. This is regrettable but quite logical, for it arises out of the fuller explanation of the subject. Here, marketers have perceived a legitimacy in researching inter alia such areas as buyer behaviour, buyer perceptions, the organisation of buying and the decision‐making process of the purchasing function. Although many of these pieces of work are helpful to those studying purchasing subjects, they are necessarily written from the marketing perspective and therefore not entirely adequate for the serious student of purchasing. As an example, such authors naturally see the buyer as part of the customer market and references to markets is within this context. The buyer himself has a perspective of his/her supply markets which recognise their wider scope and increased complexity more accurately than can be perceived by an author taking a marketing viewpoint.
V.H.Y Lo, D. Sculli and A.H.W. Yeung
The primary objective of this paper is to ascertain the impact of supplier quality management (SQM) on the quality performance of manufacturing companies operating in the Pearl…
Abstract
Purpose
The primary objective of this paper is to ascertain the impact of supplier quality management (SQM) on the quality performance of manufacturing companies operating in the Pearl River Delta (PRD) area of Southern China.
Design/methodology/approach
Path analysis is used to build a model that demonstrates how SQM contributes to quality performance and also the constructive effect of supply quality on organizational quality performance. Data were collected from 138 manufacturing and manufacturing‐related companies in the PRD. Hypotheses were formulated by means of the published literature and interviews with experienced industry personnel.
Findings
The path model indicates that SQM practices contribute significantly to quality performance and also illustrates the constructive effect of supply quality on the overall quality performance of the organization. Results also indicate that TQM philosophies can act as an essential driver in SQM implementation.
Research limitations/implications
The study is confined to the PRD of Southern China and only examines the interrelationships between the constructs of TQM values and SQM practices. Several insignificant paths between SQM and quality measures should be further investigated.
Practical implications
The model developed can be used to help companies improve their current supplier management systems and can also aid the implementation of new supplier quality management systems. The findings should also be useful to those companies seeking to source from the PRD.
Originality/value
The paper explores the role that SQM plays in minimizing operating costs, in shortening delivery times, and in improving overall quality performance along a demand chain. The results reinforce the need to enhance the competitiveness of the business units along a demand chain through better management of the supply functions.
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Sunil Kumar C.V. and Srikanta Routroy
The purpose of this paper is to assist a manufacturer with a process to measure the level of preferred supplier status (PSS) of its key suppliers along the timeline.
Abstract
Purpose
The purpose of this paper is to assist a manufacturer with a process to measure the level of preferred supplier status (PSS) of its key suppliers along the timeline.
Design/methodology/approach
In measuring the PSS, the prominent preferred supplier enablers (PSEs) were identified and were broadly categorized under manufacturer’s interest component, common interest component and supplier’s characteristic component. These PSEs were further analyzed by using fuzzy analytic hierarchy process, Euclidean distance measurement and grey relation analysis methods. In order to demonstrate the application and utility of the proposed approach, a case study conducted in an Indian automotive component manufacturing company has been presented.
Findings
By applying the proposed methodology in a case company, the PSSs of five of its key suppliers were measured and then the suppliers’ characteristic scores were determined. Based on these scores, a preferential status plot of the suppliers was developed. Through the status plot, the manufacturer was suggested with whom the proposed initiatives can be productive and with whom the manufacturer has to appeal for improvement strategies.
Research limitations/implications
Since the methodology was tried in the Indian manufacturing environment, the emphasis laid on the PSEs and in turn the measurement of PSS may not address the concern at large.
Practical implications
Measuring PSS would not only earn competitive advantages for the manufacturers but also facilitate the evolution of competitive suppliers.
Originality/value
Measuring PSS along the time would assist a manufacturer to effectively manage the preferences given to its suppliers and thereby enhance the supply base contribution in the value addition process.
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Sunil Kumar C.V. and Srikanta Routroy
The purpose of this paper is to analyze preferred supplier enablers (PSEs) and measure the interdependencies among themselves for enhancing preferred supplier relationship.
Abstract
Purpose
The purpose of this paper is to analyze preferred supplier enablers (PSEs) and measure the interdependencies among themselves for enhancing preferred supplier relationship.
Design/methodology/approach
In the current study, an approach has been developed in which the significance of various PSEs was determined by applying Fuzzy Analytic Hierarchy Process (FAHP) and the prominent PSEs were screened out through Pareto analysis. Also, the interdependence among the prominent PSEs was measured by applying the Fuzzy Decision Making Trial and Evaluation Laboratory method in order to select the right PSEs in ascribing the Preferred Supplier Status. Finally, the weakest relationships among the PSEs were confirmed by applying the student’s t-test and then an impact relationship map of PSEs was developed.
Findings
The strength of relationships among the PSEs, grouping of PSEs into causes and effects on a causal diagram and a concise impact relationship map of PSEs were determined. Further, the PSEs that a manufacturer must primarily focus and monitor were also obtained.
Research limitations/implications
The study was conducted in an Indian electronic manufacturing environment. Therefore, the results obtained would be more relevant to the high end technology product manufacturers operating in the developing countries.
Practical implications
From the current study, a manufacturer can alleviate, favorably associate and integrate with the good suppliers and then eventually establish a strong supply base.
Originality/value
Manufacturers are looking for the closer and favored relationships by bringing in the concept of preferred supplier while dealing with their key suppliers. Thus, the results obtained from the current study would be of great assistance to a manufacturer in gaining an extra cutting-edge and, in turn, tackling the increased competitive pressures and reduced availability of resources.
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Cristóbal Sánchez‐Rodríguez and Ángel R. Martínez‐Lorente
The topic of this research focuses on firm's perceived implementation of quality management practices in the purchasing function. More specifically, this paper describes an…
Abstract
The topic of this research focuses on firm's perceived implementation of quality management practices in the purchasing function. More specifically, this paper describes an exploratory research effort to analyze and classify quality management practices in purchasing and assesses the relationships of these practices with measurements of a firm purchasing's operational performance (POP), internal customer satisfaction and business performance. The results reported in this study are based on a field survey consisting of responses gathered from 306 purchasing managers within the Spanish manufacturing industry. The assessment of the relationships among quality management practices in purchasing, POP, internal customer satisfaction and business performance is carried out using bivariate correlation analysis.
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Martin Fraering and Sameer Prasad
Billions of dollars are being poured into developing nations by multinationals as part of their diversification, divestiture, facility location, and supplier selection strategies…
Abstract
Billions of dollars are being poured into developing nations by multinationals as part of their diversification, divestiture, facility location, and supplier selection strategies. By integrating the literature in international business, marketing, purchasing, and operations management, a contingency model is developed to minimize the overall costs of such decisions. This model provides linkages between the type of product, organizational and country characteristics, and the logistics and sourcing strategies. In addition, it provides specific recommendations to government officials in helping their countries become global platforms for manufacturing and attracting foreign investment.
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Patricia J. Daugherty and Cornelia Dröge
In recent years, more firms have chosen to use outside servicevendors to provide at least a portion of their logistical supportrequirements. The analysis presents projected usage…
Abstract
In recent years, more firms have chosen to use outside service vendors to provide at least a portion of their logistical support requirements. The analysis presents projected usage trends for selected services as identified by logistics executives. Differences in anticipated usage levels of external logistical services were found when firms of different organisational structure were examined.
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The management of materials to support aircraftmaintenance is studied. In a situation where thesafety stock is determined using a rule of thumbthat does not differentiate the…
Abstract
The management of materials to support aircraft maintenance is studied. In a situation where the safety stock is determined using a rule of thumb that does not differentiate the demand variation, the problem of low service level of expendables cannot be solved unless this rule is changed. A new guide for safety stock, taking demand pattern into consideration, is introduced. In addition, more reordering of low cost items is automated to ease slightly the high manpower utilisation, and put more effort where it counts most – monitoring and expediting high cost items. Other problems are related to loss and repair cost of the repairable items.
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J. Andrew Pope and Sameer Prasad
An instrument has been developed to empirically measure the factors (constructs) influencing inventory systems and their effectiveness in international environments. The relevant…
Abstract
An instrument has been developed to empirically measure the factors (constructs) influencing inventory systems and their effectiveness in international environments. The relevant literature was examined and eight constructs were identified to be included in the scale: the level of infrastructure, government policy, product characteristics, productions environments, supply base, degree of uncertainty, information level and effectiveness of the inventory system. The instrument was tested through structured interviews in operations in North America, South America, Europe and Asia. These scales provide an essential building block for empirical researchers and managers to document the state of international operations. As an example of using this scale a comparison of US, European and Latin American inventory systems is provided.
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Although noticeable improvements have been made in global health in recent years, the distribution is uneven throughout the world and many developing and low-income countries lack…
Abstract
Purpose
Although noticeable improvements have been made in global health in recent years, the distribution is uneven throughout the world and many developing and low-income countries lack access to required medicine and vaccines. Thus, a model to strategically source vaccines for these nations can contribute a great deal. This paper aims to present an extensive review of strategic sourcing literature, and to identify the criteria and available models in making strategic sourcing decisions. The purpose is to develop a decision making framework for future empirical study of humanitarian aid networks, more specifically, sourcing and distribution of vaccines in developing countries.
Design/methodology/approach
A thorough review of several purchasing and supply chain management (SCM) journals was conducted to identify the strategic criteria in making sourcing decisions, hence “strategic sourcing”. In line with this, a number of sourcing strategies were reviewed to find the relevant strategic criteria. Secondary data from practice were also investigated for special characteristics of vaccine supply chains in humanitarian aid networks. Articles were then scrutinized and results categorized in order to develop a framework for future empirical studies.
Findings
The findings show the historical development of strategic sourcing and the criteria in making strategic sourcing decisions. More recent studies, while taking a look back in history, have revealed a mix of strategies for more flexible models. Quality has been noted to be a strategic criterion for sourcing vaccines and this has caused the supply market to be dispersed on a global scale.
Research limitations/implications
Considering the extensive number of academic publications, due to the focus of this study being sourcing within humanitarian aid networks, a number of academic journals in logistics/SCM/sourcing were reviewed.
Originality/value
A decision making framework is presented for sourcing vaccines within the humanitarian sector. The criteria in making strategic sourcing decisions are further re-evaluated and a base model proposed. The framework will be used for further research on sourcing in the humanitarian aid sector as well as practical implications.