Purchasing and supply management practices in customer value creation

2019 ◽  
Vol 24 (3) ◽  
pp. 317-333 ◽  
Author(s):  
Aki Jääskeläinen ◽  
Jussi Heikkilä

Purpose How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question by investigating the delivery of value over three tiers in the supply chain, that is, from suppliers to the focal company, and further to the focal company’s customers following value chain logic. Design/methodology/approach The study is carried out as a qualitative interview study in four focal companies operating in business-to-business markets. A total of 32 interviews are conducted targeted to managers and directors of sales and marketing, purchasing, product/service development and business units. Findings The study unveils the characteristics and interplay of supplier-oriented and cross-functional PSM practices in customer value creation. The findings indicate that cross-functional integration between purchasing and the other functions of a focal firm is most beneficial in improving supply flexibility to fulfill customer preferences, identifying new supplier offerings for the customer and facilitating time-to-market of new products. Research limitations/implications This study enhances managers’ understanding of the characteristics of the non-financial benefits of purchasing and the role of PSM practices in customer value creation and business success. The findings are indicative of potentially successful practices in the contexts studied. Originality/value This study contributes to the supply chain management literature on the benefits of the purchasing function by highlighting the value created for the customer of a focal company. It also extends the discussion in the supply chain management literature on customer value creating interaction processes in business relationships by focusing on PSM practices.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dmitry Ivanov

PurposeSupply chain resilience capabilities are usually considered in light of some anticipated events and are as passive assets, which are “waiting” for use in case of an emergency. This, however, can be inefficient. Moreover, the current COVID-19 pandemic has revealed difficulties in the timely deployments of resilience assets and their utilization for value creation. We present a framework that consolidates different angles of efficient resilience and renders utilization of resilience capabilities for creation of value.Design/methodology/approachWe conceptualise the design of the AURA (Active Usage of Resilience Assets) framework for post-COVID-19 supply chain management through collating the extant literature on value creation-oriented resilience and practical examples and complementing our analysis with a discussion of practical implementations.FindingsBuilding upon and integrating the existing frameworks of VSC (Viable Supply Chain), RSC (Reconfigurable Supply Chain) and LCNSC (Low-Certainty-Need Supply Chain), we elaborate on a new idea in the AURA approach – to consider resilience as an inherent, active and value-creating component of operations management decisions, rather than as a passive “shield” to protect against rare, severe events. We identify 10 future research areas for lean resilience integrating management and digital platforms and technology.Practical implicationsThe outcomes of our study can be used by supply chain and operations managers to improve the efficiency and effectiveness by turning resilience from passive, cost-driving assets into a value-creating, inclusive decision-making paradigm.Originality/valueWe propose a novel approach to bring more dynamics to the notion of supply chain resilience. We name our approach AURA and articulate its two major advantages as follows: (1) reduction of disruption prediction efforts and (2) value creation from resilience assets. We offer a discussion on ten future research directions towards a lean resilience.


2019 ◽  
Vol 1 (1) ◽  
pp. 68-87 ◽  
Author(s):  
Mohammed Belal Uddin ◽  
Bilkis Akhter

PurposeThe purpose of this paper is to investigate the institutional and significant competences that have allowed organizations to employ supply chain management (SCM) practices, the practices of SCM and the benefits of SCM practices for both buyers and suppers.Design/methodology/approachA theoretical model (including hypotheses) has been proposed regarding antecedents, SCM practices and outcomes of SCM. Using purposive sampling method, data were collected from different manufacturing, distributing, wholesaling and retailing organizations. Collected data were analyzed in a principal component analysis and structural equation modeling, including confirmatory factor analysis, and path analysis.FindingsThe empirical results provided supportive evidences in favor of the hypotheses and theoretical arguments except one hypothesis. This study did not a find positive relationship between organizational compatibility and SCM practices. The study found relationships between mutual trust and SCM practices, communication and SCM practices, and cooperation and SCM practices, which were positive and significant. Again, the relationships between SCM practices and competitive advantages, and SCM practices and long-term orientation and growth were also positive and significant.Practical implicationsPractitioners could also use the findings to align SCM with business strategy and gain an insight for better utilization of the available resources and technology to perform better.Originality/valueThis study will provide guidance as to the preconditions that need to be in place in order for a company to implement SCM with its suppliers and customers. It will remind practitioners to stay focused on the ultimate goals of SCM – lower costs, increased customer value and satisfaction, and, ultimately, competitive advantage.


2020 ◽  
Vol 40 (7/8) ◽  
pp. 1153-1176 ◽  
Author(s):  
Yujia Han ◽  
Nigel David Caldwell ◽  
Abhijeet Ghadge

PurposeSocial network analysis (SNA) seeks to manage the connections between entities through investigating and understanding behaviours and relationships. This study demonstrates the increasing relevance of social network approaches to solving contemporary and looming operations management (OM) and supply chain management (SCM) problems; including the coordination operations challenges raised by increased connectivity.Design/methodology/approachThe systematic literature review approach adopted here examines 63 papers in OM and SCM published between 2000 and 2019. To-date OM reviews on SNA have focussed on discussing archetypal supply chains, what differentiates this study is the focus on how value was created in other forms of chains and operations.FindingsThis study reveals that current SNA adoption in OM is dominated by a manufacturing style focus on linear, sequential value creation, with a resulting focus only on sequential interdependence. SNA studies on reciprocally co-ordinated value creation (e.g. many service and network operations) are shown to have been neglected and are linked to a new agenda on contemporary management issues.Research limitations/implicationsBeyond encouraging the use of SNA, this study seeks to re-orient SNA approaches towards how contemporary services and networks create value.Originality/valueThrough adopting a unique combination of approaches and frameworks, this study challenges extant work to offer a substantially revised agenda for SNA use in Operations and Supply Chain Management.


2016 ◽  
Vol 23 (7) ◽  
pp. 2109-2127 ◽  
Author(s):  
Katrina Lintukangas ◽  
Jukka Hallikas ◽  
Minna Koivisto-Pitkänen ◽  
Anni-Kaisa Kähkönen

Purpose The purpose of this paper is to unite the fragmented discussion concerning organizational-level capability in terms of purchasing and supply chain management. The capability drivers are identified from the literature and then validated by purchasing professionals. The impacts of the identified capability drivers on supply management capability are empirically examined. To increase a firm’s supply management capability, it is essential to connect purchasing and supply chain management to the firm’s strategy, as well as to establish robust policies and procedures for the activities of supply function, and to promote supplier orientation and the value of supplier networks to the business. Design/methodology/approach Data and methodological triangulation are utilized in the form of focus group sessions and a large scale survey. A regression analysis of the data from 165 Finnish firms is performed to examine the influence of the drivers. Findings The drivers of supply management capability proposed in this study and ranked by the focus group were the strategic status of procurement, supplier orientation, and the formalization of organizational responsibilities and roles in the purchasing function. An examination of these components and their relation to capability by means of a regression analysis showed that they have positive effects and high explanatory power on supply management capability. Originality/value The paper summarizes capability studies in the field of purchasing and supply chain management from the last two decades and also fulfils the need for empirical studies concerning the concept of supply management capability. Moreover, it contributes to the theory development by confirming that supply management capability really is a strategic asset of a firm.


2019 ◽  
Vol 27 (1) ◽  
pp. 347-381 ◽  
Author(s):  
Ravindra Baliga ◽  
Rakesh Raut ◽  
Sachin Kamble

Purpose The purpose of this paper is to conceptualize a model for sustainable supply chain management (SSCM) that integrates the antecedents, practices and performance measures of sustainability. It also examines if lean management (LM) and supply management (SM) are antecedents of SSCM. Design/methodology/approach A systematic review of literature was undertaken across multiple streams, including operations management, SCM, sustainability, business ethics and performance management. Articles relevant to SSCM published over a span of 31 years (1988–2018) were searched using keywords and specific selection criteria. Findings From the literature, three dependent constructs – motivators of sustainability, LM and SM – and three independent constructs – environmental practices in SCM, social practices in SCM and SSCM performance – are identified and defined. Linkages between these constructs are hypothesized to develop a theoretical framework called the “integrated lean/supply management with sustainability motivators, practices and performance model.” Research limitations/implications Built on the principles-practices-outcomes framework proposed earlier, this model is comprehensive in its coverage of sustainability antecedents, practices and performance. Further, it covers the SCM triad – the supplier, the focal firm and the customers – as well as the roles they play in sustainability performance. Originality/value By identifying LM and SM as additional antecedents of SSCM, this study suggests that sustainability may be realized through LM and SM principles. Further, the proposed model presents a novel integration of literature from diverse domains.


2020 ◽  
Vol 40 (6) ◽  
pp. 777-808
Author(s):  
Qiyuan Zhang ◽  
Jason Lu Jin ◽  
Defeng Yang

PurposeGiven the pivotal influence of institutional forces, an important yet underexplored question in supply chain management literature is how contractual and relational governance jointly affect supplier performance under weak legislative environments. This study tends to solve the debate by distinguishing contractual definability from contractual enforceability and by considering the contingent role of legal development in China.Design/methodology/approachUsing a combined dataset of secondary data and a survey of 224 buyer–supplier dyads in China, this study examines how contractual definability and contractual enforceability interact with relational governance differently in driving supplier performance, and assesses the contingent role of legal development.FindingsThis study finds that contractual definability complements yet contractual enforceability substitutes relational governance in affecting supplier performance. Moreover, legal development weakens the complementary effect but strengthens the substitutive effect.Originality/valueThe study firstly enriches supply chain management literature by classifying the roles of contracts into contractual definability and contractual enforceability and showing their differential interplay with relational governance. Second, the study contributes to the complements–substitutes debate by revealing the shifting role of legal development. Third, the research enriches the understanding of supply chain management in the Chinese market.


2014 ◽  
Vol 19 (3) ◽  
pp. 258-274 ◽  
Author(s):  
Jury Gualandris ◽  
Ruggero Golini ◽  
Matteo Kalchschmidt

Purpose – The aim of this paper is to explore the impact that sustainable supply chain management (SSCM) has on company’s sustainability performance (both environmental and social), the direct and the indirect impacts that traditional supply management (SM) has on such performance and the effect that global sourcing exerts on the relationships involving SM, SSCM and firm sustainability performance. Design/methodology/approach – Empirical data were obtained from the fifth edition of the International Manufacturing Strategy Survey. The sample consists of 336 assembly manufacturing companies from 21 countries. Data were collected in 2009. The authors apply a moderated mediation analysis to analyse the role of SM and SSCM, and also perform a multi-group analysis to verify the moderation effect played by global sourcing. Findings – First, SSCM improves sustainability performance (both environmental and social) of the company that implements it. Then, SM plays a complex role, as it fosters the adoption of SSCM and makes SSCM more effective. Interestingly, these results are valid for both Locals (i.e. companies sourcing mainly within their continent) and Globals (i.e. companies that have relevant international supply relationships). However, for Locals only, SM also produces a direct effect on sustainability performance of the company. Originality/value – Findings provide empirical evidence that supports previous theoretical works. Furthermore, this paper expands the literature by shedding light on the multifaceted role of SM and on the moderating role of global sourcing. Results are useful to practitioners and researchers interested in developing their understanding of how sustainability at the company level is related to supply chain management.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaleh Memari ◽  
Abbas Rezaei Pandari ◽  
Mohammad Ehsani ◽  
Shokufeh Mahmudi

PurposeTo understand the football industry in its entirety, a supply chain management (SCM) approach is necessary. This includes the study of suppliers, consumers and their collaborations. The purpose of this study was to present a business management model based on supply chain management.Design/methodology/approachData were collected through in-depth interviews with 12 academic and executive football experts. After three steps of open, axial and selective coding based on grounded theory with a paradigmatic approach, the data were analysed, and a football supply chain management (FSCM) was developed. The proposed model includes three managerial components: upstream suppliers, the manufacturing firm, and downstream customers.FindingsThe football industry sector has three parts: upstream suppliers, manufacturing firm/football clubs and downstream customers. We proposed seven parts for the managerial processes of football supply chain management: event/match management, club management, resource and infrastructure management, customer relationship management, supplier relationship management, cash flow management and knowledge and information flow management. This model can be used for configuration, coordination and redesign of business operations as well as the development of models for evaluation of the football supply chain's performance.Originality/valueThe proposed model of a football supply chain management, with the existing literature and theoretical review, created a synergistic outcome. This synergy is presented in the linkage of the players in this chain and interactions between them. This view can improve the management of industry productivity and improve the products quality.


Author(s):  
Craig R. Carter ◽  
Marc R. Hatton ◽  
Chao Wu ◽  
Xiangjing Chen

Purpose The purpose of this paper is to update the work of Carter and Easton (2011), by conducting a systematic review of the sustainable supply chain management (SSCM) literature in the primary logistics and supply chain management journals, during the 2010–2018 timeframe. Design/methodology/approach The authors use a systematic literature review (SLR) methodology which follows the methodology employed by Carter and Easton (2011). An evaluation of this methodology, using the Modified AMSTAR criteria, demonstrates a high level of empirical validity. Findings The field of SSCM continues to evolve with changes in substantive focus, theoretical lenses, unit of analysis, methodology and type of analysis. However, there are still abundant future research opportunities, including investigating under-researched topics such as diversity and human rights/working conditions, employing the group as the unit of analysis and better addressing empirical validity and social desirability bias. Research limitations/implications The findings result in prescriptions and a broad agenda to guide future research in the SSCM arena. The final section of the paper provides additional avenues for future research surrounding theory development and decision making. Originality/value This SLR provides a rigorous, methodologically valid review of the continuing evolution of empirical SSCM research over a 28-year time period.


2019 ◽  
Vol 27 (7) ◽  
pp. 2130-2147 ◽  
Author(s):  
Marcio C. Machado ◽  
Renato Telles ◽  
Paulo Sampaio ◽  
Maciel M. Queiroz ◽  
Ana Cristina Fernandes

Purpose The purpose of this paper is to present a conceptual framework for performance measurement (PM) for the integration of supply chain management (SCM) and quality management (QM). Design/methodology/approach A systematic literature review on SCM and QM was conducted to develop key performance measures related to six areas of integration between QM and SCM: leadership; continuous improvement and innovation; sustainability performance; stakeholders; information system; and management and strategic planning. Findings Supported by the literature concerning to supply chain quality management (SCQM) integration, a set of nine propositions about performance measures, that contribute to the integration of SCQM, were developed. Originality/value This study contributes to QM practices within a supply chain environment from an integrated perspective. Additionally, the propositions have significant implications from both managerial and theoretical perspectives. This study also extends the concept of supply chain quality integration by focusing on key aspects of PM that may help to improve the overall performance of the supply chain.


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