Supplier Performance Management: Risk Mitigation and Industry Benchmarks

Author(s):  
Christof Ebert
2019 ◽  
Vol 18 (3) ◽  
pp. 705-726
Author(s):  
Jeffrey Boon Hui Yap ◽  
Sin Yi Cheah

Purpose The purpose of this paper is to investigate the major challenges faced by Chinese international contractors (CICs) in the Malaysian construction industry. Design/methodology/approach An exploratory sequential mixed-methods research approach was adopted where following a detailed literature review and semi-structured interviews with local professionals, 20 prevalent challenges experienced by CICs are identified. Subsequently, a questionnaire survey was used to elicit the views of 100 construction practitioners. Descriptive statistics were used to prioritise the challenges, while exploratory factor analysis was conducted to uncover the underlying factors. Findings The five most crucial challenges identified relate to: changes of regulation, cost control, contract clauses, language barrier and quality control. Exploratory factor analysis revealed four major underlying dimensions of these challenges, in connection to financial and government policy management, organisational performance management, supplier relationship management and cross-cultural management. Research limitations/implications The challenges are considered primarily involving CICs in the context of Malaysia; further work can be extended to Western or other East Asian, such as Japanese and Korean, international contractors undertaking construction projects in Malaysia or selected developing countries around the region. Practical implications This study will benefit professionals involved with China-backed construction projects in countries sharing demographics and socio-economic characteristics akin to Malaysia. The outcome of the study is expected to facilitate project managers to devise proactive risk-mitigation measures to reduce the impact of these challenges and to improve project delivery. Originality/value The paper examined the challenges faced by CICs in the Malaysian context. This is a timely study, as China’s Belt and Road Initiative will provide considerable opportunities for Chinese companies in Malaysia.


2020 ◽  
Vol 24 (1) ◽  
pp. 88
Author(s):  
Martin Pech ◽  
Drahoš Vaněček

<p><strong>Purpose:</strong> The paper deals with the differences of supplier performance management characteristics by different size of the enterprises and sectors of industry.</p><p><strong>Methodology/Approach:</strong> The research is based on a questionnaire survey carried out in 2016-2019 in 366 enterprises. Four hypotheses were formulated, focused on supplier selection preferences, frequency of supply evaluation,  providing feedback to the suppliers about their performance and quality control. The results are analyzed by the tests of Chi-square statistics.</p><p><strong>Findings:</strong> The results show that the enterprises differ in the criteria of the selection of the supplier, frequency of supply evaluation and providing feedback to the suppliers about their performance according to their sector industry. In terms of the size of the enterprises, differences were found only in the evaluation of suppliers and evaluation feedback. Enterprises did not differ in quality control of the deliveries.</p><p><strong>Research Limitation/implication:</strong> The results show that quality is the most evaluated criterion in the selection of the suppliers. In the future, the importance of other environmental and Industry 4.0 criteria will grow. It is recommended combining supplier evaluation and reviews with the feedback to the suppliers to improve the performance of the suppliers.</p><strong>Originality/Value of paper:</strong> The study compares the enterprises in terms of their size and industries in the area of supplier performance management characteristics. These criteria are often not mentioned nor compared in other publications.


2012 ◽  
Vol 18 (5) ◽  
pp. 642-654 ◽  
Author(s):  
Yali Ren ◽  
Mirosław J. Skibniewski ◽  
Shaohua Jiang

This paper describes an innovative approach to the integration of Building Information Modeling (BIM) and electronic commerce (e-commerce) in a material procurement process for improved design-construction integration. The paper includes the present applications, benefits, limitations and barriers to e-commerce and BIM in material procurement processes, compares the present commercial BIM based and non-BIM based quantity takeoff and cost estimating software, and identifies potential benefits of integrating BIM and e-commerce software solutions for construction quantity takeoff, cost estimating and procurement processes. The authors propose a framework for integrating BIM for quantity takeoff and cost estimating applications with e-commerce solutions for material procurement and supplier performance evaluation. The paper presents a proposed solution to link BIM-derived data with RS Means unit price cost data to generate accurate cost estimating reports, one weight coefficient-based model to evaluate the performance of material suppliers, and a preliminary version of corresponding BIM-based application integrated with e-commerce software system.


2021 ◽  
Author(s):  
David Morris ◽  
Malcolm Atkinson ◽  
Mike Avery ◽  
David Gillespie

Abstract As the subsea well intervention sector ascends from a double-dip downturn, operators are motivated to execute projects with increased agility. By adopting new rationale and supported by strategic partnerships, an enhanced focus on operating efficiency is targeted. This paper discusses how operators can –deliver predictable operational expenditure (opex) results, safeguarding life-of-field economics through routine interventions and robust risk mitigation–align objectives with service providers through technology, strategy, and process–realize value of integrated alliances in the subsea intervention sector. Reliability is the cornerstone on which operational integrity is established. Repeatability is the foundation on which partnerships are formed, forging a synchronized philosophy; pledging operational efficiency as commanded in a dynamic environment; bringing to market a holistic, multileveled, multiskilled solution to subsea interventions; and uniting product and operational experts to evaluate the range of scope requirements selecting fit-for-purpose solutions, delivered with synchronized processes. Here we describe how this approach, coupled with repeatable field-proven product and service reliability and driven by true customer-centric thinking, minimizes operating risk to deliver predictable outcomes. This ethos is demonstrated in action via three case studies that discuss the benefits of combining customer expertise with product and operational specialists during the initiation and planning phases of subsea well intervention projects. The shared examples demonstrate how inculcating a continuous improvement mindset and applying lessons learned to product design, process, and procedures can drive operating efficiency to new levels. Campaigns executed in 2020 by the supplier delivered best-in-class results, exceeding customer expectations. The campaign represented the first fully synchronized service operation on the Q5000 intervention vessel at 90% operating efficiency. In addition, they demonstrated outstanding versatility by outperforming budget on the first deployment of the 15,000 psi intervention riser system (IRS) from the Q4000 intervention vessel. Less than 1% operating nonproductive time (NPT) was attributed to the well access package for the campaign. Sustaining this level of success via collaborative performance management is the next step on the roadmap to ensure this becomes the new normal. Conclusions drawn from customer feedback indicated expectations were surpassed, and that synchronicity is the key that unlocks the door to sustainability in the subsea deepwater intervention sector.


2015 ◽  
Vol 31 ◽  
pp. 671-676 ◽  
Author(s):  
Sallaudin Hassan ◽  
Siti Hajar Ramli ◽  
Rahmat Roslan ◽  
Jimisiah Jaafar

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