Strategies for achieving customer order flexibility – supplier perspective

2021 ◽  
Vol 32 (9) ◽  
pp. 396-413
Author(s):  
Helena Forslund ◽  
Stig-Arne Mattsson
Keyword(s):  
Lead Time ◽  
Raw Materials ◽  
Operational Flexibility ◽  
Supplier Relationships ◽  
Content Type ◽  
Continuous Contact ◽  
Customer Order ◽  
Order Quantities ◽  
Remedial Strategies ◽  
Practical Implications

PurposeThe purpose of this study is to develop a framework of strategies to achieving customer order flexibility in and related to the order-to-delivery (OTD) process. The purpose is also to investigate how companies prioritize various strategies to achieve customer order flexibility.Design/methodology/approachBased on a literature review, pre-tests and conceptual reasoning, a conceptual framework of strategies related to the order-to-delivery process was developed. The strategies were linked to the order quantity and delivery lead-time flexibility dimensions. This structure resulted in six groups covering enabling as well as remedial strategies. An empirical interview study of ten customer–supplier relationships was conducted.FindingsThe interviews identified additional strategies, thereby expanding the framework. The enabling strategies with the highest median values were “have continuous contact with the customer's purchaser” and “use safety stock of raw materials/semi-finished products”. The remedial strategy with the highest median was “re-plan/re-prioritize the order backlog”. In the delivery sub-process, it was more common to apply remedial strategies for delivery lead-time than for order quantities.Research limitations/implicationsThe developed framework is a contribution to the literature on operational flexibility in and related to the OTD process. It complements existing knowledge by taking a supplier perspective.Practical implicationsSuppliers can use the framework as a tool to understand and systematically achieve better customer order flexibility in and related to the OTD process. Customers can use the framework as a checklist for supplier evaluation and supplier development.Originality/valueFew identified studies include empirical data on customer order flexibility.

HC and financial performance with two HRM strategies

2017 ◽  
Vol 66 (4) ◽  
pp. 459-478 ◽  
Author(s):  
Nopadol Rompho
Keyword(s):  
Human Capital ◽  
Regression Analysis ◽  
Financial Performance ◽  
Lead Time ◽  
Design Methodology ◽  
Strategy Choice ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.

Behind the length of contract during market transitions

2020 ◽  
Vol 35 (11) ◽  
pp. 1801-1815
Author(s):  
Xin Chen ◽  
En Xie ◽  
Mike W. Peng ◽  
Brian C. Pinkham
Keyword(s):  
Emerging Economies ◽  
Transaction Cost Economics ◽  
Institutional Environment ◽  
Research Question ◽  
Empirical Method ◽  
Supplier Relationships ◽  
Content Type ◽  
Specific Investments ◽  
Market Transitions ◽  
Practical Implications

Purpose The purpose of this paper is to examine an important yet underexplored research question in the literature: What determines the length of contract governing buyer–supplier relationships during market transitions? The length of contract is a solid indicator of the comprehensiveness of a contract. By integrating transaction costs economics, the embeddedness perspective and the institution-based view, the paper develops a model that incorporates specific investments and perceived opportunism, strategies to select suppliers and buyer firms’ confidence in the institutional environment. It further posits how buyer firms’ dependence on suppliers moderates these relationships. Design/methodology/approach Data were collected nationwide via face-to-face interviews with 328 executives in 164 Chinese firms who shared information pertaining to 774 buyer–supplier contracts. A fine-grained mixed-empirical method was designed to test the proposed hypotheses, to confirm the reliability and to generalize the research findings. Findings All the proposed factors significantly influence the length of the contract. Results obtained through a moderated mediating model suggest that buyers with supplier-specific investments and that choose market-based selection relative to a relationship-based tend to perceive more opportunism in buyer–supplier relationships, which will lead to shortening the length of the contract. However, the buyer’s perception of opportunism will decrease when buyers perceive higher levels of confidence in their legal institutions. Practical implications The study discusses several practical implications for B2B managers who typically involve in interfirm exchanges as well as for emerging economies’ institutions. Originality/value Leveraging theoretical insights from transaction cost economics, the institution-based view and buyer–supplier relationships literature, this empirical study adds unique contributions to B2B research in general and emerging economies’ institutional literature in particular.

scholarly journals Improving retail supply flexibility using buyer-supplier relational capabilities

2017 ◽  
Vol 37 (3) ◽  
pp. 343-362 ◽  
Author(s):  
Raymond Obayi ◽  
S.C. Koh ◽  
David Oglethorpe ◽  
Seyed M. Ebrahimi
Keyword(s):  
Supply Chain ◽  
Supplier Relationships ◽  
Chain Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
Supply Chain Flexibility ◽  
And Performance ◽  
Relational Capabilities ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the mediating role of three important relational capabilities – absorptive capacity (AC), transactive memory systems (TMS), and organisational interoperability (OI); on the flexibility of buyer-supplier relationships and performance in retail supply chains. Drawing on the relational view of strategic management, the impact of relational capabilities on two forms of supply chain flexibility is examined – configuration flexibility (CF) for switching suppliers with minimal penalties, and planning and control flexibility (PCF) for altering supply schedules, quality, and delivery lead-time. Design/methodology/approach Strategic- and tactical-level managers from 211 retail stores in the UK were surveyed. The authors validated a measurement model with structural equation modelling and tested four hypotheses on the mediating role of relational capabilities on supply chain flexibility and retail performance, controlling for size, duration of relationship, and market segment. Findings Results showed that the three relational capabilities partially mediated the positive effect of CF and PCF on operational performance in big middle and niche retailers. Examining the interaction effect of the forms of flexibility on the relational capabilities and performance, the authors found positive interaction effects on TMS and OI but a non-significant effect on AC. Practical implications In addition to providing novel theoretical insights on supply chain flexibility, the findings have practical implications for supplier selection and buyer-supplier relationship management. Originality/value Overall, the study highlights the impacts of relational capabilities on adopted operational strategies such as flexibility, buyer-supplier relationships, and retail performance.

scholarly journals Tensions and territoriality: the dark side of servitization

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Scott Wagstaff ◽  
Jamie Burton ◽  
Judith Zolkiewski
Keyword(s):  
Negative Impact ◽  
Dark Side ◽  
Management Support ◽  
Structured Interviews ◽  
Supplier Relationships ◽  
Content Type ◽  
Strategic Intent ◽  
Management Commitment ◽  
The Impact ◽  
Practical Implications

Purpose This paper focusses on the darker side of the dynamics of servitization by exploring the tensions and territoriality that emerge between manufacturers and customers during the servitization process in the oil industry. Design/methodology/approach The Delphi method is used to explore the perspectives of three management tiers in oil organisations and the manufacturers who work with them. The views of these managers were synthesized over three iterations: semi-structured interviews, a questionnaire and resolution/explanation, where consensus was not obtained. Findings The findings of the study highlight perceptions of change, resulting tensions and territoriality and the impact of management commitment, resources and strategy. They reveal significant differences between customers and their suppliers and different management levels and highlight territorial behaviour and the negative impact this has on buyer supplier relationships during the implementation of servitization. Research limitations/implications Further research is required to explore why there is a variation in understanding and commitment at different managerial levels and the causes of tensions and territoriality. Practical implications Servitization is not a “quick fix” and management support is essential. A fundamental element of this planning is to anticipate and plan for tensions and territoriality caused by the disruption servitization creates. Originality/value The research provides empirical evidence of tensions and territoriality relating to servitization that potentially can damage supplier–buyer relationships and suggest that there is a darker side to servitization. It also shows that differences in strategic intent across organizations and between different managerial layers impedes to servitization efforts.

Customer-differentiated triadic interaction based on decoupling points

2017 ◽  
Vol 10 (2) ◽  
pp. 185-205 ◽  
Author(s):  
Joakim Wikner ◽  
Jenny Bäckstrand ◽  
Eva Johansson
Keyword(s):  
Supply Chain ◽  
Control Strategy ◽  
Design Methodology ◽  
Customer Requirements ◽  
Content Type ◽  
Triadic Interaction ◽  
Customer Order ◽  
Material Classification ◽  
And Control ◽  
Practical Implications

Purpose The integration of supply chains together with the disintegration of individual actors in the supply chain shifts the focus from actors to challenges in the interaction between actors. This paper aims to identify risk strategies for different supplier interactions in triadic configurations to outline supply strategies. Design/methodology/approach Companies participating in a research project recounted the challenges they faced regarding the integration of customer order-based management and supply from a triad perspective. Six triad configurations were identified, based on the literature, resulting in three risk strategies, which were empirically illustrated in practice by the participating companies. Findings A key finding is that a triad perspective for a customer-differentiated approach to supplier interaction results in a material classification that highlights the circumstances in which to apply “balance efficiency”, “postpone”, “balance responsiveness” and “speculate” supply strategies. Research limitations/implications The research has focused on process drivers and controllability, and the results may require careful interpretation when there is a mix of standardized and customized products because further interaction differentiation may then be required. Practical implications The strategies developed herein provide guidelines for differentiated supplier interaction with explicit focus on triads where customer actors directly influence supplier actors. This approach highlights how outsourcing must be carefully executed when supplier actors are involved in delivery to customer orders. Originality/value The paper sheds new light on how customer requirements impact supplier interaction in terms of decoupling points related to both delivery strategy and control strategy. The study also presents a novel application of the Kraljic matrix in in terms of risk strategies in different triad configurations.

Manufacturing relocation through offshoring and backshoring: the case of Sweden

2018 ◽  
Vol 29 (4) ◽  
pp. 637-657 ◽  
Author(s):  
Malin Johansson ◽  
Jan Olhager
Keyword(s):  
Lead Time ◽  
Design Methodology ◽  
Survey Design ◽  
Geographical Area ◽  
International Context ◽  
Content Type ◽  
Manufacturing Plants ◽  
Manufacturing Operations ◽  
Similarities And Differences ◽  
Practical Implications

Purpose The purpose of this paper is to present recent empirical results concerning offshoring and backshoring of manufacturing from and to Sweden, to increase the understanding of manufacturing relocation in an international context. In particular, extent, geographies, type of production, drivers, and benefits of moving manufacturing in both directions are investigated. Design/methodology/approach The study is based on survey data from 373 manufacturing plants. The same set of questions is used for both offshoring and backshoring between 2010 and 2015, which allows similarities and differences in decision-making and results between the two relocation directions to be identified. Findings There are many significant differences between offshoring and backshoring projects. Labour cost is the dominating factor in offshoring, as driver and benefit, while backshoring is related to many drivers and benefits, such as quality, lead-time, flexibility, access to skills and knowledge, access to technology, and proximity to R&D. This is also reflected in the type of production that is relocated; labour-intensive production is offshored and complex production is backshored. Research limitations/implications Plants that have both offshored and backshored think and act differently than plants that have only offshored or backshored, which is why it is important to distinguish between these plant types in the context of manufacturing relocations. Practical implications The experience of Swedish manufacturing plants reported here can be used as a point of reference for internal manufacturing operations. Originality/value The survey design allows a unique comparison between offshoring and backshoring activity. Since Swedish firms in general have been quite active in rearranging their manufacturing footprint and have experience from movements in both directions, it is an appropriate geographical area to study in this context.

Examining buyer‐supplier relationships within a service sector context

2005 ◽  
Vol 10 (4) ◽  
pp. 272-277 ◽  
Author(s):  
Desmond Doran ◽  
Peter Thomas ◽  
Nigel Caldwell
Keyword(s):  
Service Sector ◽  
Structured Interviews ◽  
Supplier Relationships ◽  
Content Type ◽  
Insurance Sector ◽  
Qualitative Approaches ◽  
Cash Compensation ◽  
Compensation Approach ◽  
Practical Implications ◽  
Insight Into

PurposeThe primary aim of this research is to explore buyer‐supplier relationships within a service sector context.Design/methodology/approachTo address the primary aim, both quantitative and qualitative approaches were utilised. A questionnaire was issued to selected buyer and supplier groups in order to determine relationship issues associated with insurance claims. The questionnaire was complemented by a number of semi‐structured interviews with buyers and suppliers across each spend category.FindingsThe results of this research indicate that there are significant gaps between buyer and supplier expectations concerning how relationships should evolve and that the issues of power and trust will need to be explored in greater depth if relationships are to be optimised.Practical implicationsThis research is of practical use to service sector companies attempting to examine how to develop effective buyer‐supplier relationships. It is of particular use to service buyer operations within the insurance sector, that is moving from the traditional cash compensation approach to a replacement goods approach.Originality/valueVery little has been written about buyer‐supplier relationships in the insurance sector and as such this paper provides an insight into issues relating to such relationships within this unique service sector context.

Managing the essential medicines stock at rural healthcare systems in India

2018 ◽  
Vol 31 (8) ◽  
pp. 950-965 ◽  
Author(s):  
Dinesh Kumar ◽  
D. Kumar
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Stock Assessment ◽  
Healthcare Systems ◽  
Essential Medicines ◽  
Rural Healthcare ◽  
Content Type ◽  
One Year ◽  
Medicine Supply ◽  
Practical Implications

Purpose The purpose of this paper is to eliminate the medicine stock-out problem by building an optimum medicine stock in rural healthcare centers in India. Design/methodology/approach Data associated with inflow and outflow of a specific medicine (folic acid tablets) arer collected from all consecutive supply chain stages during the survey. While conducting the survey, it is found that several medicines are out of stock owing to uncertain lead time and demand. Integrating with quantity discount and min–max (s, S) inventory policy, two models are developed using system dynamics: one is Model 1 with constant lead time and uncertain demand, and the other is Model 2 with both uncertain lead time and demand. Findings Both models are simulated for a period of one year on Stella 9.1 platform. The results are compared with actual data, and the comparison shows significant improvement of the medicine stock at all downstream stages, while maintaining a certain safety stock. Further, Model 2 suggests a larger stock than Model 1 at each point of time. Practical implications Despite numerous issues, the stocks of medicine in rural healthcare systems can be improved as suggested by the models. The models depict the behavior of inventory stock at each stage of the supply chain and act as a function of time that could be used in the form of a prediction tool for the policymakers. Originality/value This paper is one of the first papers that had developed the model of the medicine supply chain in rural parts of a developing country. It provides a generic framework for the stock assessment and improvement throughout the supply chain.

Rethinking strategic marketing: achieving breakthrough results

2005 ◽  
Vol 26 (3) ◽  
pp. 20-34 ◽  
Author(s):  
Dale Fodness
Keyword(s):  
Design Methodology ◽  
Raw Materials ◽  
Strategic Thinking ◽  
Strategic Decision ◽  
Strategic Marketing ◽  
Strategic Decision Making ◽  
Real Power ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

PurposeTo provide a practical overview of strategic thinking concepts and practices for marketing and other managers that can help them improve their strategy making.Design/methodology/approachThe raw materials of strategic thinking are illustrated by case studies and examples from a range of industries to aid managers in their successful application. The principles and techniques are presented in four categories: thinking strategies, strategic decision making, strategic competencies and visualizing strategy.FindingsOffers marketers an approach for moving beyond the automatic application of traditional strategic frameworks to identify and to achieve breakthrough strategies. Recognizes the real power of strategic thinking as a source of competitive advantage.Practical implicationsThe principles and practices proposed represent a practical system for enhancing strategic promise and performance, as well as for reducing the risks of strategic failure.Originality/valueThe marketing discipline is long overdue in applying the same attention and rigor to strategic thinking that it applies to strategic planning and this paper offers managers practical help in identifying and developing strategic thinking competencies.

Antecedents and benefits of obtaining preferred customer status

2015 ◽  
Vol 35 (2) ◽  
pp. 178-200 ◽  
Author(s):  
Jeroen Bemelmans ◽  
Hans Voordijk ◽  
Bart Vos ◽  
Geert Dewulf
Keyword(s):  
Case Studies ◽  
Construction Industry ◽  
Design Methodology ◽  
Positive Impact ◽  
Matched Pair ◽  
Organizational Relationships ◽  
Supplier Relationships ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to explore both the antecedents and the impact of a buying company having preferred customer status. Specific attention is paid to an, until now, unexplored antecedent: the buyer’s maturity as perceived by the supplier. In terms of impact, the focus is on the link between obtaining preferred customer status from a specific supplier and the buyer’s satisfaction with its collaboration with that supplier. Design/methodology/approach – Two case studies in the Dutch construction industry were conducted and, in each case, representatives of three companies were interviewed: one supplier plus two of its customers, one of them having a preferred status. As such, a total of four dyadic matched-pair inter-organizational relationships have been investigated. Findings – First, it is beneficial for buying companies to obtain preferred customer status at their suppliers, since this will have a positive impact on the buying company’s satisfaction with the collaboration. Second, if buying companies aim to obtain preferred customer status at their suppliers it is important that they are perceived as mature in managing supplier relationships. Practical implications – Although buying companies and suppliers often both want to increase their mutual business, there can be many factors that impede this. The framework presented in this research can help companies overcoming these impediments. Originality/value – This is the first study exploring the impact of being a preferred customer on the buyer-supplier relationship in the construction industry.

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