A review of the forms, rationale, and challenges of supplier development in public procurement: lessons for public buyers in Tanzania

This article synthesizes current insights into supplier management practices that professional buyers can apply in the public procurement context. Specifically, it discusses the practices, rationale, and challenges associated with implementing supplier development as an important activity within supplier management practices. Drawing from the literature, the main arguments are on the applicability of indirect supplier development practices in the public procurement context. Therefore, it is concluded that public buyers can consider applying these practices in public organizations. However, caution should be exercised regarding the legal and regulatory structure that governs the country’s public procurement system. It further recommends empirical studies to be done on supplier development practices for local suppliers in specific public procurement projects.

The boundary-spanning role of first-tier suppliers in sustainability-oriented supplier development initiatives

PurposeThis study aims to study how first-tier suppliers (FTs) operate as boundary-spanners between the focal firm and second-tier suppliers (STs) in extending sustainability-oriented supplier development (SSD) initiatives up the supply chain.Design/methodology/approachAn exploratory multi-case study approach in the apparel industry is adopted, comprised of four cases focused on occupational health and safety issues. The paper uses primary semi-structured interviews and observation data and secondary documents, and it is informed by the boundary-spanning and social capital theory.FindingsThe influence of downstream social capital on the upstream boundary-spanning actions of FTs is highlighted. More specifically, it is found that the cognitive and relational capital that exists in the downstream relationship between an FT and the focal firm affects whether the FT adopts compliance- or improvement-oriented boundary-spanning actions in their upstream relationships with STs. Particularly important aspects of cognitive and relational capital are highlighted while the phenomenon of FTs adding their own personal interpretation to sustainability requirements when fulfilling their boundary-spanning role is identified.Research limitations/implicationsA distinction is made between compliance- and improvement-oriented boundary-spanning actions. A deeper insight into the boundary-spanning role of FTs in extending SSD initiatives up the supply chain to STs is provided along with a deeper understanding of how this role is impacted by social capital.Practical implicationsFocal firms should seek to build adequate cognitive and relational capital with their FTs before deploying SSD initiatives to extend their reach further upstream in the supply chain. In doing so, it is also important to be cognisant of the social capital that exists between FTs and STs.Originality/valueThe paper contributes to the SSD literature by going beyond the buyer–FT dyad to examine the FT's boundary-spanning role in the wider buyer–FT–ST chain relationship. The study theoretically and empirically draws out the importance of relation-specific assets through the social capital lens.

Striving for Enterprise Sustainability through Supplier Development Process

Much research has already been dedicated to the impact of the supply chain, but less attention has been paid to the potential of supplier development (SD) processes in strengthening enterprises’ sustainability performance. This study aimed to indicate how the approach to socially responsible supplier development has changed over the years (2010–2019) in the automotive sector considering the types of practices and the applied areas of social responsibility. The study was based on original and empirical content analysis research of sustainability reports of car producers. To identify changes in the approach to socially responsible supplier development (SRSD) practices, 17 criteria were identified within direct as well as indirect types of supplier development practices. Considering areas of social responsibility, we applied the core subjects of social responsibility based on the ISO 26000 standard. The findings revealed that during the analyzed period, there has been a recursive use of both direct and indirect SD practices by the car producers but to varying degrees. The environmental protection, human rights, labor practices, fair operating practices, and organizational governance issues were the major concerns. When comparing 2010 and 2019, a clear increase was observed within all identified SRSD initiatives. The study outputs and examples of SRSD practices of car producers can act as a role model for automotive suppliers as well as other industries regarding how to incorporate sustainability into supplier development processes.

Incorporating Sustainability into Supplier Development Process

Nowadays companies are more and more often expected to take responsibility for social and environmental impacts of their activities. When doing business social responsible company takes into consideration a wide range of its stakeholder’s expectations but also spread the social and environmental responsibility idea within the supply chain. Suppliers are the key stakeholders which directly influence the producer in terms of costs and quality of the offered products. However suppliers who offer high quality materials or components at an attractive price but at the same time not paying attention to their social and environmental impacts may devastate the buyer sustainability performance. Therefore the companies are trying to support suppliers in assuring their social and environmental responsibility as with this approach both sides benefit. In the study the authors used the case study method to present the proposal of integrating sustainability issues into already functioning supplier development process of a manufacturing company.