MRO Spare Parts Management and Inventory Optimization

In this chapter, considering the importance of spare parts inventory management in the equipment life cycle, the excellence models in spare parts supply chain management are reviewed, and MRO-MMM framework based on the MMM maintenance excellence model will be presented in eight steps. In this comprehensive framework, all necessary actions are considered in terms of maintenance excellence, improvement, and optimization spare parts management. The steps include compiling strategies, spare parts management policies, and related indicators; determining criticality, classification, and spare parts data management; data and procedure preparation for analysis of inventory management; optimization of inventory management system; supplier management; integrity of automation and information system; continuous improvement; and risk based and smarting inventory management. This framework has been used in various industries and proved that the implementation of the MRO-MMM framework will optimize and significantly improve spare parts management.

Supplier management by distributing orders among new and existing suppliers: the methodology and its application to a fast fashion company

PurposeThis study aims to create a reliable, collaborative and sustainable business environment with suppliers of a company for providing high-quality and low-cost products on time. A supplier management system that sustains existing suppliers by sharing work based on systematic performance evaluation while developing the supplier base with potential suppliers is proposed.Design/methodology/approachBuilt on quantitative approaches, supplier management functions are integrated in the designed system. A quantitative strengths, weaknesses, opportunities and threats (SWOT) analysis is adapted for evaluating potential suppliers. A multi-objective integer linear programming (ILP) model is developed for the distribution of orders among selected potential and existing suppliers. A performance evaluation scheme based on an exponentially weighted moving average (EWMA) is proposed to evaluate and monitor suppliers' performance over time.FindingsProposed system develops a supplier base by methodically selecting and approving new suppliers, and a sustainable relationship with both new and existing suppliers is established based on performance over time. Decisions on retaining or removing suppliers from the base are objectively made by quantitative evaluations. Orders are fairly distributed among suppliers under the constraints imposed by the management. Dependence on a certain set of suppliers and its associated risks are reduced while agility in offering goods is enabled.Originality/valueBusiness processes for selecting new suppliers, distributing orders among all suppliers, evaluating and monitoring performance over time are quantitatively integrated to add value in operational decision-making. The proposed system is original in the holistic approach for managing and sustaining multiple suppliers of a company based on performance.

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.

Barrier and motivations implementation of safety and halal assurance for apple processed products: A review

Consumers are increasingly critical and require transparency of information related to food quality. As such, the warranties of safety and halal processed apple products are increasing. Therefore, the apple processing industry should implement various systems to obtain product safety and halal certificates. This certification is not only based on the final products, but starts from the procurement of raw materials, production processes, to the distribution with evidence of consistency of implementation. Safety and halal implementation have various obstacles and challenges, especially for micro and small businesses. This article reviews the barrier factors and motivations for the implementation of safety and halal assurances for processed apple products, especially in micro and small businesses. The study results show that the main motivations for apple processing businesses include improving product safety and quality, creating satisfaction and fulfilling consumer demands, improving company image. In addition, the micro and small-scale food industries also face various obstacles, namely human resources, finance and infrastructure. These barriers can be overcome by a commitment to management, effective communication, cost management, education and training, operating procedures, supplier management, and external supports. Research regarding strategies to implement halal and safety guarantees for small-scale apple processing businesses is needed.

Supply chain management: an integrative review from the agency theory perspective

PurposeThe purpose of the article is to demonstrate how agency theory has been used to address the dynamics involved in supply chain management. It is also dedicated to suggesting an agenda for future research.Design/methodology/approachWe performed an integrative literature review, based on the process detailed by Botelho et al. (2011), with search filters. The articles were obtained from the Scopus and Web of Science databases using the keywords “supply chain” and “agency theory”, with a subsequent analytical filter for “management”. The search initially identified 205 articles. After two screenings, 56 articles were selected for analysis.FindingsDespite attempts to infer the importance of research on agency theory in supply chain management, its application to the discipline is scarce. Clearly, agency theory provides valuable insights into the relationships in the supply chain. In the studies analyzed, the dynamics of performance, risk, sustainability, dyadic and inter-firm relationships, and supplier management are predominant.Originality/valueWhen considering unwanted behaviors throughout the supply chain, agency theory fills the explanatory gaps for these facts. It also proves to be a useful tool to answer mainly the dilemmas of underlying theories, such as transaction cost theory, resource-based view and network theory. Rare are the studies that examine the current state of the application of agency theory in the supply chain literature in the management field.

Ensuring the halal integrity of the food supply chain through halal suppliers: a bibliometric review

Purpose This paper aims to provide a brief bibliometric review of previous literature reviews in understanding halal suppliers in the food supply chain to achieve halal standards from upstream to downstream. Design/methodology/approach The method used was a structured literature review sample of during 2008–2020 totalling 142 articles. The authors use the R-package bibliometric and VOSviewer to find out information about journals, articles, authors, citations, keywords and word hierarchy maps. Findings The analysis reveals five research clusters: halal supply chain, food supply chain, supply chain integration, halal lifestyle, halal logistics. Research limitations/implications This study focuses on articles that discuss halal suppliers in the food supply chain. Originality/value Bibliometric reviews related to suppliers in the halal food supply chain in this study will help explore halal suppliers and be useful for researchers and practitioners in their fields as well as assist supplier management in the halal food supply chain.

Beyond CQI-9: A Customized Approach to CQI-9 and Supplier Management

The current Automotive Industry Action Group (AIAG) CQI-9 audit process has limited effectiveness to proactively detect heat treatment quality risks in Tier-1 and Tier-2 supply bases. A cross-functional engineering organization developed an improved supplier audit form using CQI-9, National Aerospace and Defense Contractors Accreditation Program (NADCAP), International Automotive Task Force (IATF), and specific internal company standards to distinguish and quantify production issues that may have been undiscovered with the existing CQI-9 approach. Representatives from engineering, commercial, and manufacturing crafted a more complete approach to supply chain quality. This new audit format (Beyond CQI-9) has demonstrated the ability to quantify heat treatment concerns, reduce future engineering resource costs, and develop new and existing heat treatment suppliers to meet world class quality levels.

Analysing competing logics towards sustainable supplier management

Purpose To understand the context surrounding the sustainable supplier management (SSM) process (i.e. selection, development and evaluation), this paper aims to explore institutional logics existing in the Ecuadorian cocoa supply chain (SC). By considering local characteristics and sustainability practices, this study illustrates how competing logic influences SSM. Design/methodology/approach This paper uses a multiple-case study method for which the authors interviewed different cocoa SC members in Ecuador and used a ground-up approach to analyse the data and reveal singularities influencing sustainability management. Findings The analysis uncovered two main logics operating within the Ecuadorian cocoa SC SSM process: a commercial logic (e.g. potential for market access, product traceability) and a sustainability logic (e.g. local development and traditions/cultural issues). These logics address market demand requirements; however, some local producers’ needs that impact SSM remains unexplored such as the existence of a regional ancestral culture that poses sustainability as a dominant logic with meaning beyond the triple bottom line. While the two logics have influenced supplier sustainability performance, this paper finds that, of the three SSM sub-processes (selection, development and evaluation), supplier development was the most relevant sub-process receiving attention from SC managers in the studied context. Practical implications By understanding the differences in logic and needs, SC managers can better develop strategies for SSM. Originality/value The study highlighted in this paper investigated the underexplored topic of the effects that competing logic may have on SSM. This paper focusses on the supplier’s point of view regarding sustainability requirements, addressing a consistent research gap in the literature.

E-Supplier Management Practices on Supply Chain Performance of Sugar Processing Firms in Kenya

The purpose of this study was to establish the influence of electronic supplier management practices on supply chain performance of sugar processing firms. The target population is 7,584 employees of sugar processing firms in Kenya and Yamane Taro’s formula was applied to come up with a sample size of 379 respondents. Data was gathered by a questionnaire, interviews and observation. Correlation was used to determine the relationship between E-supplier management practices and Supply chain performance while regression analysis tested the hypothesis. The study established that E-supplier management practices enhances supply chain performance. Two kinds of supply chain are proposed; Managerial and demand. Managerial supply chain where as a result of electronic supplier management practice, flow of goods and services from the suppliers are properly managed through information sharing between the buyer-seller thus improved deliveries. Demand supply chain where as a result of electronic supplier management practice, buyers and suppliers tend to develop a single shared forecast of demand and a plan of supply in the sense that buyers issue order for only needed materials from the suppliers and that suppliers fulfills the orders as requested by the buyers. To ensure that the proposed supply chain under e-supplier management,it is recommended that Sugar processing firms’ management should ensure working Websites, working internal and external mail and also provide their suppliers with access credentials to company electronic procurement portal to increase buyer and supplier access to information to enhance E-supplier management practices.

Strategic supplier management in nascent firms: an examination of how nascent firms improve customer attractiveness to obtain strategic supplier collaboration

PurposeThe purpose of this paper is to empirically investigate the activities that nascent firms undertake to improve customer attractiveness and gain collaborative commitment from strategic suppliers.Design/methodology/approachData from a grounded theory study consisting of 26 participants from 15 firms and a review of extant literature were used to develop a theoretical model that explains how a nascent firm increases its customer attractiveness to elicit commitment and collaboration from strategic suppliers.FindingsThe authors find that social capital, born of close social ties and social history, enhances the effectiveness of a nascent firm's relationship-building practices. This counteracts a supplier's collaborative risk and consequently increases the nascent firm's customer attractiveness, thus enabling it to obtain strategic supplier collaborative commitment.Practical implicationsThis research helps managers by providing direction on what practices nascent firms pursue to gain strategic supplier resources and collaboration. Given the reality of resource constraints in nascent firms, it is suggested that this insight is essential to obtaining crucial external resources needed to survive and grow.Originality/valueExtant research on buyer–supplier collaboration is mostly confined to the context of mature firms and does not account for the unique inter-organizational relational challenges faced by nascent firms. This research uncovers the idiosyncrasies of supplier management in nascent firms, and elucidates on the actions that nascent firm managers take to gain supplier collaborative commitment.