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Supplier Performance (supplier + performance)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting88%

Selected Abstracts

A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance

DECISION SCIENCES, Issue 1 2000
Daniel R. Krause
Many manufacturing firms have increased the amount of component parts and services they outsource, while refocusing on their core capabilities. Outsourcing parts and services to independent, external suppliers means that suppliers' performance is increasingly critical to the long-term success of these buying firms. Buying firms are increasingly using disparate supplier development strategies to improve supplier performance including supplier assessment, providing incentives for improved performance, instigating competition among suppliers, and direct involvement of the buying firm's personnel with suppliers through activities such as training of suppliers' personnel. Using resource-based theory, internalization theory, and structural equation modeling, we examine the impact of these supplier development strategies on performance. We conclude that direct involvement activities, where the buying firm internalizes a significant amount of the supplier development effort, play a critical role in performance improvement. [source]

U.S. Sourcing from Low-Cost Countries: A Comparative Analysis of Supplier Performance

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 4 2007
Kusumal Ruamsook
SUMMARY Given the increase in sourcing from low-cost countries (LCCs), it is important to assess relative supplier performance across these regions. This work investigates the comparative performance of LCC suppliers on 14 operational indicators of international sourcing and supply chain performance. Using survey methods, the study addresses these two questions: (1) How do the LCC regions of Asia, the Western Hemisphere and Europe compare in terms of the 14 operational indicators?; and (2) How do LCC nations within these three regions compare with regard to the 14 operational indicators? Perceived differences exist among the regions of Asia, the Western Hemisphere and Europe, as well as among the LCC nations of these three regions. However, no one region outperforms the others, and no one nation outperforms the others, on all 14 operational indicators investigated. Accordingly, this study also identifies the key areas of comparative advantage and disadvantage that each LCC region and each LCC nation presents in its relationship with U.S. buying firms. [source]

The Impact of Electronic Reverse Auctions on Supplier Performance: The Mediating Role of Relationship Variables

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 1 2007
Craig R. Carter
The use of electronic reverse auctions (ERAs) by buying organizations has increased dramatically over the past five years. Both anecdotal and empirical evidence have shown that ERAs can lower purchase prices. However, researchers are only just beginning to investigate how ERAs impact perceptions of opportunism as compared to sealed bids and traditional negotiations. Further, researchers have yet to examine how perceptions of opportunism surrounding ERAs might in turn affect such outcome variables as trust, commitment, conflict, and ultimately nonprice attributes of supplier performance. The authors address this gap in the research by developing a theoretically grounded model of the interrelationships among these five variables, and empirically testing the model through a survey of buying organizations that rely heavily on ERAs to select and source from suppliers. The authors' findings suggest that increased levels of opportunism harm supplier nonprice performance, through both their more obvious impact on dysfunctional conflict and their more latent effects on relationship trust and commitment. [source]

STOCK LEVELS AND DELIVERY RATES IN VENDORMANAGED INVENTORY PROGRAMS

PRODUCTION AND OPERATIONS MANAGEMENT, Issue 1 2001
BEN A. CHAOUCH
Using the latest information technology, powerful retailers like Wal-Mart have taken the lead in forging shorter replenishment-cycles, automated supply systems with suppliers. With the objective to reduce cost, these retailers are directing suppliers to take full responsibility for managing stocks and deliveries. Suppliers' performance is measured according to how often inventory is shipped to the retailer, and how often customers are unable to purchase the product because it is out of stock. This emerging trend also implies that suppliers are absorbing a large part of the inventory and delivery costs and, therefore, must plan delivery programs including delivery frequency to ensure that the inherent costs are minimized. With the idea to incorporate this shift in focus, this paper looks at the problem facing the supplier who wants quicker replenishment at lower cost. In particular, we present a model that seeks the best trade-off among inventory investment, delivery rates, and permitting shortages to occur, given some random demand pattern for the product. The process generating demand consists of two components: one is deterministic and the other is random. The random part is assumed to follow a compound Poisson process. Furthermore, we assume that the supplier may fail to meet uniform shipping schedules, and, therefore, uncertainty is present in delivery times. The solution to this transportationinventory problem requires determining jointly delivery rates and stock levels that will minimize transportation, inventory, and shortage costs. Several numerical results are presented to give a feel of the optimal policy's general behavior. [source]

Using Buyer,Supplier Performance Frontiers to Manage Relationship Performance,

DECISION SCIENCES, Issue 1 2009
Anthony D. Ross
ABSTRACT This article presents a consensus-building methodology to implement dyadic performance measurement. It focuses on transmuting supplier performance and buyer performance metrics on several important attributes into actionable relationship management plans using Clark's (1996) theory of performance frontiers. Access to the supplier performance management program of a Fortune 100 corporation was granted to the research team. Direct observation of practice and in-depth discussions with several managers provided a roadmap for investigating both the literature on quantitative evaluation methods and the empirically derived theory on buyer,supplier relationships from several perspectives. This study describes a multiphase, iterative framework that uses current methods and theory on dyadic buyer,supplier evaluation to consider: (i) evaluation criteria and their importance; (ii) whether the improvement focus should be on strengths, weaknesses, or both; and (iii) whether the referent role supplier should be the ideal supplier, best supplier, or best-in-strategic-group supplier in the focal supply base. We illustrate a unifying approach by reporting results from a large buyer and 35 of its key suppliers. This research makes the case for managing supplier relationships through the dyadic performance lens. The outputs from this framework provide individual supplier improvement paths which are actionable prescriptions for each buyer,supplier dyad, as well as recommendations for strategic group formation. [source]

A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance

DECISION SCIENCES, Issue 1 2000
Daniel R. Krause
Many manufacturing firms have increased the amount of component parts and services they outsource, while refocusing on their core capabilities. Outsourcing parts and services to independent, external suppliers means that suppliers' performance is increasingly critical to the long-term success of these buying firms. Buying firms are increasingly using disparate supplier development strategies to improve supplier performance including supplier assessment, providing incentives for improved performance, instigating competition among suppliers, and direct involvement of the buying firm's personnel with suppliers through activities such as training of suppliers' personnel. Using resource-based theory, internalization theory, and structural equation modeling, we examine the impact of these supplier development strategies on performance. We conclude that direct involvement activities, where the buying firm internalizes a significant amount of the supplier development effort, play a critical role in performance improvement. [source]

U.S. Sourcing from Low-Cost Countries: A Comparative Analysis of Supplier Performance

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 4 2007
Kusumal Ruamsook
SUMMARY Given the increase in sourcing from low-cost countries (LCCs), it is important to assess relative supplier performance across these regions. This work investigates the comparative performance of LCC suppliers on 14 operational indicators of international sourcing and supply chain performance. Using survey methods, the study addresses these two questions: (1) How do the LCC regions of Asia, the Western Hemisphere and Europe compare in terms of the 14 operational indicators?; and (2) How do LCC nations within these three regions compare with regard to the 14 operational indicators? Perceived differences exist among the regions of Asia, the Western Hemisphere and Europe, as well as among the LCC nations of these three regions. However, no one region outperforms the others, and no one nation outperforms the others, on all 14 operational indicators investigated. Accordingly, this study also identifies the key areas of comparative advantage and disadvantage that each LCC region and each LCC nation presents in its relationship with U.S. buying firms. [source]

The Impact of Electronic Reverse Auctions on Supplier Performance: The Mediating Role of Relationship Variables

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 1 2007
Craig R. Carter
The use of electronic reverse auctions (ERAs) by buying organizations has increased dramatically over the past five years. Both anecdotal and empirical evidence have shown that ERAs can lower purchase prices. However, researchers are only just beginning to investigate how ERAs impact perceptions of opportunism as compared to sealed bids and traditional negotiations. Further, researchers have yet to examine how perceptions of opportunism surrounding ERAs might in turn affect such outcome variables as trust, commitment, conflict, and ultimately nonprice attributes of supplier performance. The authors address this gap in the research by developing a theoretically grounded model of the interrelationships among these five variables, and empirically testing the model through a survey of buying organizations that rely heavily on ERAs to select and source from suppliers. The authors' findings suggest that increased levels of opportunism harm supplier nonprice performance, through both their more obvious impact on dysfunctional conflict and their more latent effects on relationship trust and commitment. [source]

OEM New Product Development Practices: The Case of the Automotive Industry

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2006
Gioconda Quesada
SUMMARY In industries where value added by suppliers contributes significantly to the final product, the competitiveness of the value chain depends upon supplier performance (cost, quality and on-time delivery). Despite the importance of supplier performance in new product development (NPD), most research has focused on supplier performance in operations. Few studies have focused on how product development practices of an original equipment manufacturer (OEM) influence OEM evaluations of supplier performance. This paper posits a model of the relationships among three factions: OEM practices that involve suppliers in design, concurrent engineering practices of the OEM and OEM assessments of supplier performance. This model is tested and cross-validated using a sample of 406 NPD projects in Germany and the United States. The findings suggest that NPD practices of OEMs influence their perceptions of suppliers' performance. [source]

Supplier Evaluation and Rationalization via Data Envelopment Analysis: An Empirical Examination

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2001
Ram Narasimhan
SUMMARY Strategic evaluation of supplier performance assists firms in improving their operations across a variety of dimensions. Specifically, it aids in supplier process improvement, which in turn enhances firm performance, allows for optimal allocation of resources for supplier development programs, and assists managers in restructuring their supplier network based on performance. In order to address these issues, this article proposes a methodology for effective supplier performance evaluation based on data envelopment analysis (DEA), a multi-factor productivity analysis technique. The efficiencies derived from the DEA model are utilized in conjunction with managerial performance ratings in identifying supplier clusters, which are categorized into high performers and efficient (HE), high performers and inefficient (HI), low performers and efficient (LE), and low performers and inefficient (LI). Effective benchmarks from the HE cluster are identified for improving the operations of suppliers in the HI, LE, and LI clusters. Finally, managerial insights and implications from the study are discussed. [source]

Optimal material control in an assembly system with component commonality

NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 5 2001
Narendra Agrawal
Abstract Allocation of scarce common components to finished product orders is central to the performance of assembly systems. Analysis of these systems is complex, however, when the product master schedule is subject to uncertainty. In this paper, we analyze the cost,service performance of a component inventory system with correlated finished product demands, where component allocation is based on a fair shares method. Such issuing policies are used commonly in practice. We quantify the impact of component stocking policies on finished product delays due to component shortages and on product order completion rates. These results are used to determine optimal base stock levels for components, subject to constraints on finished product service (order completion rates). Our methodology can help managers of assembly systems to (1) understand the impact of their inventory management decisions on customer service, (2) achieve cost reductions by optimizing their inventory investments, and (3) evaluate supplier performance and negotiate contracts by quantifying the effect of delivery lead times on costs and customer service. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48:409,429, 2001 [source]

STRUCTURAL EMBEDDEDNESS AND SUPPLIER MANAGEMENT: A NETWORK PERSPECTIVE,

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 4 2008
THOMAS Y. CHOI
The concept of structural embeddedness refers to the importance of framing suppliers as being embedded in larger supply networks rather than in isolation. Such framing helps buying companies create more realistic policies and strategies when managing their suppliers. Simply put, the performance of a supplier is dependent on its own supply networks. By adopting the concept of structural embeddedness, we learn that a buying company needs to look at a supplier's extended supply network to arrive at a more complete evaluation of that supplier's performance. By doing so, a buying company may do a better job of selecting suppliers for long-term relationships and may also find value in maintaining relationships with poorly performing suppliers who may potentially act as a conduit to other companies with technological and innovative resources. [source]

Supplier Evaluations: The Role of Communication Quality

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2007
Carol Prahinski
SUMMARY Although manufacturers communicate supplier evaluations in order to influence the supplier, little is known about the role of communication quality from the suppliers' perspective and its impact on suppliers' performance. Using structural equation modeling and data collected from 138 automotive suppliers, the results suggest that the evaluation content and frequency have an impact on communication quality and suppliers' commitment. Surprisingly, frequent communication of strategic criteria was insignificant or negative. In addition, commitment of suppliers to the buying organization mediated the relationship between communication quality and supplier's performance. [source]

The Impact of Interpersonal Satisfaction on Repurchase Decisions

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2003
Michael W. Preis
SUMMARY Having once made a purchase from a supplier, customer satisfaction has been found to drive buyers'decisions about the firms from which they will repurchase goods or services. Interpersonal satisfaction, the gratification that buyers receive from relationships with salespeople, is an important component of overall customer satisfaction. Even with the growing role of technology in procurement and supply chain management, interpersonal relationships between individual buyers and sellers are an important factor in supplier selection. Other components of overall satisfaction are satisfaction with the product or service and satisfaction with the performance of the supplier. In order to measure the role of these several aspects of overall satisfaction, a survey of Institute for Supply ManagementÔ (ISM) members responsible for making repurchase decisions was conducted. The results demonstrate that satisfaction with the product, satisfaction with the supplier's performance, and satisfaction with the salesperson are correlated with intention to repurchase. Managerial implications of the results are discussed. [source]

A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance

DECISION SCIENCES, Issue 1 2000
Daniel R. Krause
Many manufacturing firms have increased the amount of component parts and services they outsource, while refocusing on their core capabilities. Outsourcing parts and services to independent, external suppliers means that suppliers' performance is increasingly critical to the long-term success of these buying firms. Buying firms are increasingly using disparate supplier development strategies to improve supplier performance including supplier assessment, providing incentives for improved performance, instigating competition among suppliers, and direct involvement of the buying firm's personnel with suppliers through activities such as training of suppliers' personnel. Using resource-based theory, internalization theory, and structural equation modeling, we examine the impact of these supplier development strategies on performance. We conclude that direct involvement activities, where the buying firm internalizes a significant amount of the supplier development effort, play a critical role in performance improvement. [source]

Supplier Evaluations: The Role of Communication Quality

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2007
Carol Prahinski
SUMMARY Although manufacturers communicate supplier evaluations in order to influence the supplier, little is known about the role of communication quality from the suppliers' perspective and its impact on suppliers' performance. Using structural equation modeling and data collected from 138 automotive suppliers, the results suggest that the evaluation content and frequency have an impact on communication quality and suppliers' commitment. Surprisingly, frequent communication of strategic criteria was insignificant or negative. In addition, commitment of suppliers to the buying organization mediated the relationship between communication quality and supplier's performance. [source]

OEM New Product Development Practices: The Case of the Automotive Industry

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2006
Gioconda Quesada
SUMMARY In industries where value added by suppliers contributes significantly to the final product, the competitiveness of the value chain depends upon supplier performance (cost, quality and on-time delivery). Despite the importance of supplier performance in new product development (NPD), most research has focused on supplier performance in operations. Few studies have focused on how product development practices of an original equipment manufacturer (OEM) influence OEM evaluations of supplier performance. This paper posits a model of the relationships among three factions: OEM practices that involve suppliers in design, concurrent engineering practices of the OEM and OEM assessments of supplier performance. This model is tested and cross-validated using a sample of 406 NPD projects in Germany and the United States. The findings suggest that NPD practices of OEMs influence their perceptions of suppliers' performance. [source]