Reverse Auctions and Supplier Consortia

2011 ◽  
pp. 10-27
Author(s):  
Peter B. Southard
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Decision Process ◽  
Collaborative Group ◽  
Reverse Auctions ◽  
Reverse Auction ◽  
Supplier Relationships ◽  
Classification Framework ◽  
Six Dimensions ◽  
Supplier Relationship

Competition between supply chains has resulted in firms carefully examining the relationships that they have, or are contemplating having, with other links in their chain. While the main focus of this book is on a specific type of relationship, that of the reverse auction, other forms of buyer-supplier relationships exist. In order to better understand the implications of the reverse-auction relationship, managers should also analyze the alternatives and the environment of relationships in which reverse auctions operate. The focus of this chapter is on an alternative buyer-supplier relationship, that of the supplier consortia. Within the six dimensions of the framework proposed by Parente, et. al. (2004), this chapter examines this little-studied collaborative group and proposes a spectrum to begin to understand some aspects of buyer-supplier relationships. The chapter includes a theoretical classification framework for supplier consortia. It then compares and contrasts supplier consortia to the reverse auction concluding with a prescriptive decision process that can help managers better analyze the most appropriate form of buyer-supplier relationship for their firm and their supply chain.

Buyer’s dependence in value creating supplier relationships

2015 ◽  
Vol 20 (2) ◽  
pp. 151-162 ◽  
Author(s):  
Anni-Kaisa Kähkönen ◽  
Katrina Lintukangas ◽  
Jukka Hallikas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Value Creation ◽  
Relationship Management ◽  
Supplier Relationship Management ◽  
Supplier Relationships ◽  
Content Type ◽  
Research Gap ◽  
Power And Dependence ◽  
Supplier Relationship

Purpose – The purpose of this paper is to examine what kind of supplier relationship management activities can be seen as value-creating activities and how those might affect the buyer’s dependence on its suppliers. Power and dependence provide specific insights into the supplier relationship management and value creation in supply chains. Design/methodology/approach – The study utilizes a survey data with 165 cases collected in Finland. The concepts are tested by means of regression analysis. Findings – The findings of the study indicate that the value-creating activities of inter-firm learning and early supplier involvement increase buyer’s dependence, but a supplier orientation does not have similar effects. Practical implications – The results have implications for supply chain managers and practitioners in terms of shedding light on the approaches of dependence and value creation at the same time. Managers need to understand the factors that create dependence, but which also have a substantial influence on value creation in supply chains and networks. Originality/value – The literature review reveals that the supply chain situations in which the supplier is strategically important and its role in the value-creation process is significant, and when the buyer is dependent on the supplier, have rarely been discussed. Moreover, by focusing on the supplier relationship management activities that can be seen as value-creating activities and by combining this to the dependence perspective, this study aims to narrow the research gap identified from the previous research.

Framework for Study of Supplier Relationships in Indian Automotive Supply Chains

2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Souresh Bhattacharya ◽  
D. Mukhopadhyay ◽  
Sunil Giri
Keyword(s):  
Supply Chains ◽  
Automotive Industry ◽  
Supplier Management ◽  
Supplier Relationships ◽  
Technological Advances ◽  
Management Orientation ◽  
High Level ◽  
Supplier Partnerships ◽  
Automotive Supply ◽  
Supplier Relationship

Indian automotive industry has increasingly adopted global supply chain best practices including supplier relationship as a management imperative, in the last two decades. Increased competition, globalization, wide-spread outsourcing, use of information technology and rapid technological advances have contributed in supplier relationship development with the objective to achieve competitive advantage and a high level of performance. It is evident that only if mutual benefits accrue to both Vehicle Assemblers (VA) and their suppliers, the partnership between them would be meaningful and effective. Also, VAs have necessarily, to invest considerable resources and effort in achieving collaboration with their suppliers and cost-effectiveness becomes an issue which leads to supply base rationalization and a segmented approach. Therefore understanding the issues involved and identifying focus areas for successful supplier relationships becomes an imperative. This paper, based on an exploratory study, delves into the VA-supplier interface in Indian automobile supply chains, examines various theoretical and practical dimensions, in order to identify strategic imperatives (key impact drivers), Supplier Management Orientation (SMO) of VAs, adoption of Supplier Development Practices, extent of VA-supplier partnerships and mutual benefits accruing to both entities. Based on this a framework for holistically studying the VA-supplier interface is proposed.

Procurement Approaches in Different Supply Chains

2013 ◽  
Vol 436 ◽  
pp. 551-556
Author(s):  
Stefan Pap ◽  
Liviu Morar
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Supply Chains ◽  
Product Life Cycle ◽  
Point Of View ◽  
Complex Environment ◽  
Supplier Relationships ◽  
Product Life ◽  
Supply Chain Efficiency ◽  
The Cost

From a purchasing point of view, it can be argued that in order for a supply chain to be efficient the cost of purchasing must be balanced with risk pertaining to the supply market and the purchased product. To decide on the appropriate forms of supplier relationships today, we argue that there are three main dimensions to be considered: A more complex environment. Supply chain efficiency. Product life cycle.

scholarly journals Pengaruh Persaingan Dan Kekuatan Pembeli Terhadap Hubungan Pemasok-Ritel Modern Di Jakarta

2018 ◽  
Vol 18 (1) ◽  
pp. 19
Author(s):  
Dedie S. Martadisastra
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Market Share ◽  
Initial Study ◽  
Processed Foods ◽  
Business Relationships ◽  
Supplier Relationships ◽  
Supply Chain Strategy ◽  
Buyer Power ◽  
Formed Part

The  aim  of the  study was to investigate the  development  of domestic supplier  perfrmances  as the  result of modem  retail-supplier  business  relationships which they  had  controlled  by the  effect of combinations  on competition and buyer power.  The  paper  presents  the  results  of a  survey  of packaged  processed  foods suppliers,  which  formed  part  of a  wider  study  of  buyer-supplier  relationships  in Indonesia's modem  retail supply chains. The findings of this study indicate that the results demonstrate the heterogeneity relationships between supplier and modem retail in the main commodity grocery sectors. The extent to which modem retail challenged by competition,  supply chain strategy and market share are likely to influence the way in  which modem retail deal with suppliers.  A part of the suppliers indicated that they get benefited  substantially from the presence of modem retail,  however, they also face several  challenges  brought    about  by buyer  power as  imposition  of several  unfair relationship terms, price fixing, and poorly supervision as cause of the development and growth of suppliers limitedly. This study attempts to show the results of the research in Indonesia to empirically measure the effect of competition and buyer power on modem retail-supplier relationships. The further research is needed to refine the results of this initial study. 

scholarly journals BUYER-SUPPLIER RELATIONSHIP SELECTION FOR A SUSTAINABLE SUPPLY CHAIN: A CASE OF THE INDIAN AUTOMOBILE INDUSTRY

2019 ◽  
Vol 11 (2) ◽  
pp. 215-227 ◽  
Author(s):  
Divesh Kumar
Keyword(s):  
Supply Chain ◽  
Automobile Industry ◽  
Primary Objective ◽  
Sustainable Supply Chain ◽  
Analytic Hierarchy ◽  
Supplier Relationships ◽  
Relationship Type ◽  
Hierarchy Process ◽  
Supplier Relationship

The primary objective of this study is to propose an analytical approach to evaluate dimensions of the buyer-supplier relationships alternative selection in the context of a sustainable supply chain considering benefits, opportunities, costs, and risks of a relationship type. The study uses a Fuzzy Analytic Hierarchy Process (FAHP) approach to develop a model that explores benefits, costs, opportunities, and risks of a buyer-supplier relationship in a sustainable supply chain. A case study of the Indian automobile sector is used to determine the appropriate form of the buyer-supplier relationship. This study found that a problem solving relationship is the most preferred form of relationship. Long term relationships and joint development ranked 2 and 3, respectively. A sensitivity analysis showed that if the weights of benefits, opportunities, costs and risks are changed the preference for alternatives selection also changes. The most important implication of the study is in providing supply chain managers with a model for development of buyer-supplier relationships with their supply chain partners based on the considerations of benefits, opportunities, costs and risks involved in developing such a relationship in a sustainable supply chain. The novelty of the present study rests in the incorporation of sustainability specific criteria for selection of the relationship between two parties in a supply chain context considering benefits, opportunities, costs, and risks of a relationship type. This is the first such model that incorporates considerations of BOCR in a sustainable supply chain.  

scholarly journals Risk Management: Rethinking Fashion Supply Chain Management for Multinational Corporations in Light of the COVID-19 Outbreak

2020 ◽  
Vol 13 (8) ◽  
pp. 173 ◽  
Author(s):  
May McMaster ◽  
Charlie Nettleton ◽  
Christeen Tom ◽  
Belanda Xu ◽  
Cheng Cao ◽  
...  
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Multinational Corporations ◽  
Information Exchange ◽  
Risk Mitigation ◽  
Supply And Demand ◽  
Supplier Relationships ◽  
Chain Management

Through an international business risk management lens, the widespread and catalytic implications of the 2020 COVID-19 pandemic on the supply chains (SCs) of fashion multinational corporations (MNC) are analyzed to contribute to existing research on supply chain management (SCM). While a movement towards agile, networked supply chain models had been in consideration for many firms prior to the outbreak, the pandemic highlights issues inherent in supply chains that employ concentrated production. We examined the current state of fashion supply chains, risks that have arisen historically and recently, and existing risk mitigation methods. We found that while lean supply chain management is primarily favored for its cost and waste reduction advantages, the structure is limited by the lack of supply chain transparency that results as well as the increasing demand volatility observed even before the COVID-19 outbreak. Although this problem might exist in the agile supply chain, agile supply chains combat this by focusing on enhancing communication and buyer-supplier relationships to improve information exchange. However, this structure also entails an associated increase in inventory and inventory costs. The COVID-19 pandemic has caused supply and demand disruptions which have resonating effects on supply chain activities and management, indicating a need to build flexibility to mitigate epidemic and demand risks. To address this, several strategies that firms can adopt to control for such risks are outlined and key areas for further research are identified which consider parties both upstream and downstream of the fashion supply chain.

Information and Communications Technology (ICT) and the Supply Chain

2020 ◽  
pp. 578-599
Author(s):  
Olayinka David-West
Keyword(s):  
Supply Chain ◽  
Information And Communications Technology ◽  
Communications Technology ◽  
Supply Chain Collaboration ◽  
Supplier Relationships ◽  
Chain Management ◽  
Extant Literature ◽  
Supply Chain Efficiency ◽  
Classification Framework ◽  
Ict Infrastructure

Information and communications technology (ICT) is an integral part of supply chain management (SCM) (Anderson, Britt, & Favre, 2007; Subramani, 2004). ICT supports SCM by enhancing supply chain efficiency, effectiveness and competitive advantage at strategic, tactical and operational management levels. Derived from extant literature on the application of ICT in SCM and ICT infrastructure sources, this chapter explores the significance of ICT in the business of SCM and describes the various ICT infrastructures deployed in aid of supply chain collaboration, integration and connectivity. While most related studies focus on organisational perspectives of ICT and SCM like benefits (Auramo, Kauremaa, & Tanskanen, 2005b), buyer-supplier relationships (Bakos & Brynjolfsson, 1993) and so on; the chapter presents a technological viewpoint of ICT and SCM. The chapter explores the function of ICT in SCM and proposes a classification framework of ICT in SCM.

Buyer and supplier perspectives on environmental initiatives

2017 ◽  
Vol 28 (4) ◽  
pp. 1319-1350 ◽  
Author(s):  
Monique Lynn Murfield ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Methodological Approach ◽  
Research Approach ◽  
Theory Approach ◽  
Multiple Perspectives ◽  
Supplier Relationships ◽  
Content Type ◽  
Environmental Initiatives ◽  
The Impact

Purpose The purpose of this paper is to examine managerial perspectives in both buyer and supplier firms implementing environmental initiatives in their supply chains, and explore the impact of environmental initiatives on buyer-supplier relationships. Design/methodology/approach A qualitative, grounded theory approach is used as the methodological approach to this research, including 15 in-depth interviews with managers from buyer and supplier firms implementing environmental initiatives in their supply chains to gain multiple perspectives of the buyer-supplier relationships. Findings The results suggest that implementing environmental initiatives within the supply chain changes the buyer-supplier relationship from transactional to collaborative, shifting from a commodity-focused purchase to a more strategic purchase as environmental initiatives are implemented. Research limitations/implications Although both buyer and supplier perspectives were considered, matched dyads were not used; researchers should continue to provide a holistic perspective of the phenomenon with dyadic data. Additionally, the use of a qualitative research approach suggests a lack of generalizability of results, and therefore researchers should further test the propositions. Practical implications Implementing environmental initiatives within the supply chain may require different approaches to supply management and development for long-term success. Suppliers should recognize that the capability to implement environmental initiatives with their customers is a differentiator. The nuances involved in managing the implementation of environmental initiatives between firms can be better managed by collaboratively developing metrics specifically related to the environment. Originality/value Previous research in environmental supply chain management has examined drivers and barriers of implementing environmental initiatives with suppliers, but fails to address the relationship dynamics involved when implementing environmental initiatives between organizations. This research begins to fill that gap.

scholarly journals A Conceptual Model for Understanding the Outcomes of Buyer-supplier Relationships in Supply Chains

2016 ◽  
Vol 9 (8) ◽  
pp. 72
Author(s):  
S. Sapukotanage ◽  
B. N. F. Warnakulasuriya ◽  
S. T. W. S. Yapa
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Supply Chains ◽  
Conceptual Model ◽  
Empirical Testing ◽  
Supplier Relationships

<p>Inter firm relationships are receiving considerable attention in marketing literature.Many firms are focusing only on the activities that have been performed traditionally while making use of the relationships that have been developed with other firms to make an offer valued by the customer. In this context buyer-supplier relationships are also becoming increasingly important. The supply chain is a mechanism through which these relationships are materialized.</p><p>This paper aims to introduce a conceptual model that facilitates empirical testing of the outcomes of buyer-supplier relationships in supply chains. This exercise is based on a literature review.</p>

Information sharing in supply chains, myth or reality? A critical analysis of empirical literature

2014 ◽  
Vol 44 (3) ◽  
pp. 179-200 ◽  
Author(s):  
Joakim Kembro ◽  
Dag Näslund
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Information Sharing ◽  
Empirical Evidence ◽  
Research Area ◽  
Empirical Literature ◽  
Future Research ◽  
Main Body ◽  
Supplier Relationships ◽  
Content Type

Purpose – The purpose of this paper is to investigate what empirical evidence exists regarding benefits of information sharing in supply chains, and to identify potential gaps and opportunities in this research area. Design/methodology/approach – The authors conducted an in-depth, systematic literature review and multilevel analysis of 82 selected articles. In the analysis, the authors investigated: whether the articles applied the supply chain as the unit of analysis; the selected research method; whether the articles applied the supply chain as the unit of data collection (i.e. collected data from three or more different companies); and finally, aspects of information sharing – including benefits. Findings – Despite anecdotal descriptions of benefits from information sharing in supply chains, the authors could not find empirical evidence to support these claims. Rather, the main body of literature reports on a focal company's perspective on traditional buyer-supplier relationships. Research limitations/implications – Given the lack of evidence for the claimed benefits of information sharing on a supply chain level, more research is needed in this field. The authors therefore propose an agenda for future research building on four key points. Originality/value – Contrary to popular belief, empirical evidence for benefits of information sharing in supply chains does not seem to exist. This article highlights an issue previously not addressed with a systematic in-depth review and analysis of empirical articles.

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