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Supplier Involvement (supplier + involvement)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

The Implementation of Target Costing in the United States: Theory Versus Practice

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 1 2006
Lisa M. Ellram
SUMMARY Target costing has been touted as a process that can significantly improve new product development results in the accounting, engineering, operations management, and purchasing literature. The target costing process considers the voice of the customer, incorporates earlier supplier involvement and concurrent engineering, utilizes cross-functional teams, and focuses on creating a good or service that is both desirable and affordable to the customer and profitable to the producing organization. Unlike previous studies, which have focused on Japanese firms, or used single case studies, this paper uses the findings from case studies of 11 organizations actively engaged in the target costing process. This paper explores how the target costing process is used in practice in the United States, comparing it with the popular theoretical model of target costing. It helps shed light on to target costing practices of U.S. and other Western firms, and highlights the often overlooked role of the purchasing function in successful target costing efforts. [source]

Collaborative Value Analysis: Experiences from the Automotive Industry

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 4 2000
Janet L. Hartley
SUMMARY As the nature of competition shifts to a supply chain focus, effectively leveraging suppliers' technical expertise is becoming essential to market success in many industries. Some organizations are using a time-proven technique, value analysis (VA), to leverage their suppliers' technical expertise. This study reports the benefits and challenges of supplier involvement in VA based on the experiences of four first-tier automotive suppliers. When suppliers are involved in VA, many ideas can be developed and trust can increase, both of which strengthen buyer-supplier partnerships. Unfortunately, reluctance to share cost data, lack of engineering resources, and failure to obtain customer approval are barriers to VA implementation. Several practices can be used to overcome these barriers. [source]

Partnership Sourcing: An Organization Change Management Perspective

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2000
Ronan McIvor
SUMMARY This article highlights the organization change implications for organizations that are attempting to develop collaborative relationships with their suppliers. The research focuses on four dimensions of collaborative relations including joint buyer-supplier cost reduction, supplier involvement in new product development, delivery and logistics management, and core business strategy. A case study is presented which outlines how an organization adopted a strategy that led to extensive outsourcing and the adoption of more collaborative relations with its key suppliers. The pursuit of this strategy has acted as a stimulus for change within the organization. The article identifies a number of issues that must be addressed, including the adoption of an integrated approach to the management of strategic change, the pivotal role of senior managers as facilitators of this change, and the involvement of those most affected by the movement toward more collaborative buyer-supplier relationships. [source]

A Model of Supplier Integration into New Product Development*

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 4 2003
Kenneth J. Petersen
In many industries, firms are looking for ways to cut concept-to-customer development time, to improve quality, and to reduce the cost of new products. One approach shown to be successful in Japanese organizations involves the integration of material suppliers early in the new product development cycle. This involvement may range from simple consultation with suppliers on design ideas to making suppliers fully responsible for the design of components or systems they will supply. While prior research shows the benefit of using this approach, execution remains a problem. The processes for identifying and integrating suppliers into the new product development (NPD) process in North American organizations are not understood well. This problem is compounded by the fact that design team members often are reluctant to listen to the technology and cost ideas made by suppliers in new product development efforts. We suggest a model of the key activities required for successful supplier integration into NPD projects, based on case studies with 17 Japanese and American manufacturing organizations. The model is validated using data from a survey of purchasing executives in global corporations with at least one successful and one unsuccessful supplier integration experience. The results suggest that (1) increased knowledge of a supplier is more likely to result in greater information sharing and involvement of the supplier in the product development process; (2) sharing of technology information results in higher levels of supplier involvement and improved outcomes; (3) supplier involvement on teams generally results in a higher achievement of NPD team goals; (4) in cases when technology uncertainty is present, suppliers and buyers are more likely to share information on NPD teams; and (5) the problems associated with technology uncertainty can be mitigated by greater use of technology sharing and direct supplier participation on new product development teams. A supplier's participation as a true member of a new product development team seems to result in the highest level of benefits, especially in cases when a technology is in its formative stages. [source]