• Title/Summary/Keyword: Supplier Performance

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Optimization-Based Buyer-Supplier Price Negotiation: Supporting Buyer's Scenarios with Suppler Selection

  • Lee, Pyoungsoo;Jeon, Dong-Han;Seo, Yong-Won
    • Journal of Distribution Science
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    • v.15 no.6
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    • pp.37-46
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    • 2017
  • Purpose - The paper aims to propose an optimization model for supporting the buyer-seller negotiations. We consider the price, quality, and delivery as evaluation criteria, also recognized as objectives for negotiation. Research design, data, and methodology - The methodology used in this paper involves the input-oriented DEA with the inverse optimization. Under the existence of several potential suppliers, the price would be considered to be the decision variable to conclude the negotiation so as to meet the desired level of the quality and delivery. The data set for six suppliers with three criteria is examined by the proposed approach. Results - We present the decision aid model by displaying the price spectrum as the changes of desired output levels. It overcomes the shortcomings from previous researches mainly based on the discrete types of scenario generations. This approach shows that the obtained results help the buyer understand the trade-offs between price and performance when he/she considers the negotiation. Conclusions - The paper contributes to the numerical models for buyer-supplier negotiation in that the model for the supplier evaluation and selection is closely linked with the model for negotiation. In addition, it eliminates the unrealistic negotiation strategy, and provides the negotiation strategies that the buyer would not shift the burden on suppliers by maintaining the current efficiency.

Studies on Determinant Factors of SCM Performance: From the Supplier Perspective (SCM 성과 결정요인에 관한 통합적 연구: 공급업체 관점으로)

  • Park, Kwang-Oh;Chang, Hwal-Sik
    • Asia pacific journal of information systems
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    • v.21 no.1
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    • pp.1-27
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    • 2011
  • In an attempt to cope with widespread, dynamic, and accelerating changes in both internal and external business environments, companies often utilize information technologies such as SCM(Supply Chain Management). To date, SCM research has mainly focused on the effects of dynamic factors on SCM success and emphasized adoption strategies and critical success factors. Consequently, the effects of more static factors such as interdependency between SCM partners have been largely ignored. The purpose of this study, therefore, is to examine the effects of both dynamic and static factors on SCM performance by controlling for information quality and partnership quality. The five factors examined in this study include innovative ness, mutual dependency, quality of information, partnership quality, and SCM performance. All factors were examined from the perspective of part suppliers, except the mutual dependency which was examined from two aspects: supplier's dependency on customer and customer's dependency on supplier. Data was collected through five hundred survey questionnaires distributed to the part supplier companies that have implemented SCM systems for at least one year. As a result, a total of 170 valid responses were obtained. A structural equation research model was fitted using SAS 9.1.3 and SMART-PLS 2.0. The results of this study can be summarized as follows. First, innovativeness positively affected SCM information quality. SCM partnership quality, and ultimately SCM performance. The path coefficient between innovativeness and information quality was 0.387, with a t-value of 3.528. Innovativeness also had a positively direct effect on partnership quality. The path coefficient was 0.351 with a t-value of 3.366. The total effect of innovativeness on partnership quality was significant, although its indirect effect on partnership quality by altering information quality was negligible. The total indirect effect of innovativeness on SCM performance by affecting information quality and partnership quality was significant with a p-value of 0.014. Innovativeness played an important role in determining SCM performance. Second, mutual dependency showed no significant effect on SCM information quality. This result contradicts the earlier assertion that the more dependent two companies are, the more accurate and timely the information they exchange ought to be. This study showed that this may not be the case; a partner may provide information of poor quality even when it is strongly dependent on the other. Mutual dependency showed significant effect on partnership quality. However, when the mutual dependency perceived by suppliers was divided into two parts, one being a supplier's dependency on its customer company and the other being a customer's dependency on the supplier, the latter showed a significant impact on the perceived SCM partnership quality. This result indicates that a customer company can hardly improve the partnership quality perceived by suppliers by making them more dependent. It improves only when the suppliers perceive that their partners, typically having more bargaining power, are more dependent on them. The overall effect of mutual dependency of any kind on SCM performance, however, was not significant. Although mutual dependency has been mentioned as an important static factor influencing almost every aspect of cooperation on a supply chain, its influences may not be as significant as it was initially perceived to be. Third, the correlation between information quality and partnership quality was 0.448 with a p-value of less than 0.001. Information quality had a path coefficient of 0.256 to partnership quality with a t-value of 2.940. The quality of information exchanged between partners may have an impact on their partnership quality. Fourth, information quality also had a significant impact on SCM performance with a path coefficient of 0.325 with a t-value of 3.611. In this study, SCM performance was divided into four categories: product quality, cost saving, service quality, and order fulfillment. Information quality has Significant impacts on product quality, cost saving and service quality, but not on order fulfillment. Fifth, partnership quality, as expected, had a significant impact on SCM performance. The path coefficient was 0.403 with a t-value of 3.539. Partnership quality, like information quality, had positive impacts on product quality, cost saving and service quality, but showed no impact on order fulfillment. It seemed that order fulfillment is the hardest category of performance that SCM can satisfy. One major limitation of this study is that it surveyed only the suppliers. To better understand the dual aspects of SCM, it is important to survey both suppliers and the assemblers, especially in pairs. This research, to our best knowledge, was the first attempt to study the level of dependency between the two groups by measuring the dual aspects of SCM and studying mutual dependency from the categories of suppliers and assemblers each.. In the future, a more comprehensive and precise measurement of SCM characteristics needs to be achieved by examining from both the supplier's and assembler's perspectives.

Antecedents, Knowledge Change Speed, and Performance in Knowledge Transfer Activities for Supplier Development (공급자 개발을 위한 지식이전활동에서의 영향요인, 지식변화속도 그리고 성과)

  • Hong, Kwan-Soo;Zhang, Ping
    • Korean Management Science Review
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    • v.26 no.2
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    • pp.113-134
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    • 2009
  • Rapid knowledge change, heightened competition. and shortened product life cycles are just a few of the constants faced by many buying firms in today's markets. Many buying firms have responded to these conditions by outsourcing non-core activities. The Quality and cost of a product or service offered in the market is a function, not only of the capabilities of the firm, but also of the network of suppliers who provide inputs to the firm. When a firm finds its suppliers lacking in performance it can help suppliers to develop their capabilities. There are three main goals for this study. The first goal is to identify the important factors that precede and influence firms' investment in knowledge transfer activities. The second goal is to investigate the relationship between knowledge transfer activities and the consequences of knowledge transfer activities. The last goal is to explore the effects of knowledge change speed. To analyze the validity of the research model and the hypotheses. the data are collected from 238 manufacturing firms through the administration of structured Questionnaires. The results of structural equation model analyses indicate that the model is generally valid and 11 of 14 hypotheses are supported by the data. Reasons for and implications of these observed relationships are discussed.

The Effect of Strategic and Operational Integration of 1st supplier's buyer and supplier on Production Flexibility (1차 협력사의 구매자 및 공급자와의 전략적·운영적 통합이 생산의 유연성에 미치는 영향)

  • Kim, Jong Hoon;Lee, Tae Hee
    • International Commerce and Information Review
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    • v.18 no.4
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    • pp.285-310
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    • 2016
  • The purpose of this study empirically verified impact of strategic and operational integration between first-tier supplier and their supplier and strategic and operational integration between first-tier supplier and their buyer on operation performance. In order to achieve our goal, we tested reliability, validity and path coefficient using structural equation modeling-partial least square (SEM-PLS) over 284 first-tier manufacturing suppliers data that Korea Productivity Center (KPC) surveyed in 2013. This study results indicated that operational integration between first-tier supplier and their supplier or buyer has positive impact on production process flexibility. Meanwhile, strategic integration between first-tier supplier and buyer has positive impact on production flexibility. On the other hand, strategic integration between first-tier supplier and supplier has negative impact on production flexibility. And production process flexibility has positive impact on production flexibility. By empirically testing to departmentalize level and scope of supply chain integration, this study has academic and managerial implications from first-tier perspective on.

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A Study on the Effect of Sustainable Supply Chain Activities on the Performance of Supply Chain Participants -Focusing on the performance creation process of suppliers and buyers- (지속가능 공급망 활동이 공급망 참여 기업의 성과에 미치는 영향에 관한 연구 -공급사 및 구매사의 성과창출 과정을 중심으로-)

  • Park, Eun Shil;Choi, Do Young
    • Journal of Digital Convergence
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    • v.20 no.1
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    • pp.107-117
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    • 2022
  • This study aims to examine the relationship between the economic, environmental and social activities of sustainable supply chains and the customer satisfaction and customer retention rate, which are the final results in the supplier's operational performance and the buyer's market performance. The survey was conducted on employees in charge of supply chain management, purchasing company, partner company, and logistics management in the company. The final 193 valid data were analyzed to verify the research hypothesis. The results of the study showed that the economic and social activities of the sustainable supply chain had a positive effect on the supplier performance and the purchaser performance, but environmental activities had a negative effect on the supplier performance. In addition, the purchasing company performance has a positive effect on customer satisfaction and customer retention rate. This study provides a theoretical basis for sustainable supply chain activities to affect the operating performance of suppliers and the market performance of buyers, and suggests implications for enhancing the competitiveness of companies through the performance creation process that affects customer performance.

Case Study on Key Activities for Effective Supplier Relationship Management(SRM) (효과적인 공급자관계관리(SRM)를 위한 핵심활동 사례연구)

  • Choi, Hye Won
    • Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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    • v.9 no.4
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    • pp.813-823
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    • 2019
  • Supplier Relationship Management (SRM) is a strategic partnership activity for an enterprise and is expected to be a significant performance element in the current enterprise environment where uncertainty is growing. Despite the effective SRM allows companies to manage quality and inventory throughout their logistics procurement process with their suppliers and increase the profitability of the company, there is a scarce of theory about supplier relationship management (SRM) and many companies are not aware of the importance of SRM and depend only on simple electronic purchasing methods. Therefore, I analyze the H Company as a case company, which is a large domestic company and has reached 2,500 domestic and overseas suppliers. SRM process and its effects are evaluated as (1) Purchasing strategy division 2) Process division (3) IT infrastructure division. By analyzing SRM as one of the management strategies that bring the overall value of enterprise performance up, and by looking at how domestic large corporations manage their suppliers, I hope that manufacturers with many suppliers will recognize the importance of SRM and build an SRM tailored to their business.

The Effect of Trust between Buyer-Supplier Relationship on Collaboration and Supply Chain Performance : Networks Industry in Korea (구매자-공급자간의 상호신뢰가 협업과 공급사슬 성과에 미치는 영향 : 이동통신산업을 중심으로)

  • Seo, Chang-Soo;Kim, Chul-Soo
    • Korean Management Science Review
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    • v.25 no.1
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    • pp.11-27
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    • 2008
  • Through collaboration between buyers and suppliers, their companies try to achieve their own objectives and competitive advantages. And it is known that trust between them also would influence the effects of collaboration, which would increase their performances. In this study, above three domains of constructs : trust, collaborative behavior, performance are handled. From gathering data about a mobile networks industry and building a research model, we acquire the results of the study. Through nine hypotheses, the study show the results. The end of this paper describes managerial implications for collaborative performance and SCM strategy.

The Effects of Supply Network's Social Capitals on Sustainable Supply Network Management Project and Its Performance (공급망의 사회적 자본 특성이 친환경 공급망관리 프로젝트 성과에 미치는 영향)

  • Kim, Hyojin;Oh, Jaeyoung;Hur, Daesik
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.45 no.3
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    • pp.214-227
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    • 2022
  • The successful implementation of green supply chain management(GSCM) practices requires a level of cooperation that can be difficult to conduct. Despite this challenge, limited scholarly attention has been paid to exploring how the implementation of GSCM practices can be effectively facilitated and enhanced through accumulated social capital with suppliers. Based on social capital theory, this study postulates that supplier network characteristics derived from social capital with key suppliers can be critical antecedents of GSCM, which in turn enhances the firm's environmental performance. To test hypotheses, data were collected from 330 firms in 15 countries, and structural equation modeling was employed. Results show that GSCM improves environmental performance, and structural and cognitive social capitals of the supplier network act as antecedents and lead to GSCM implementation.

The Assessment of Food Supplier's Work Importance and Performance (초등학교 농산물 공급업자의 업무 수행수준과 업무중요도 분석)

  • Eun, Jung-Youn;Lee, Jin-Sil
    • Journal of the Korean Society of Food Culture
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    • v.16 no.5
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    • pp.407-415
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    • 2001
  • The purposes of this study were to assess th importance and performance of food suppliers and to explore the ways to improve the school foodservice purchasing management. The questionnaire regarding purchasing was composed of two parts. The part one consisted of questions on general characteristics of dieticians and school foodservice operations, and the part two was composed of questions on the importance & performance of food suppliers. Completed questionnaires were received from 286 dieticians of elementary school foodservice operations in Seoul. Statistical data analysis was completed using the SPSS/win for descriptive and t-test. In dieticians' demographic data, 36.6% were over 30 years old, 32.4% were $28{\sim}29$ years of age and 31.0% were below 27years old. Most of the respondents(68.3%) had overall working experiences less than 58 months and almost half of them(56.3%) were married. The school foodservice operations which employed a chef were 50.3%. The food suppliers' attributes that were recognized by the dieticians with high value of mean importance scores were: food quality, maintenance of food quality, accuracy in filling orders, quality of delivery facilities, on time delivery and packaging. Average mean score for importance was 4.33('important') out of 5 and mean score for performance was 3.50('so-so') out of 5. By IPA techniques, the attributes that deserve higher attention were those that ranked high in importance and low in performance(Quadrant A). The coordinates in Quadrant A were geographical location of supplier, maintenance of food quality, provision of information on cost variation and salesman's knowledge.

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PM Steels Approaching the Performance of Wrought Steels

  • Tengzelius, Jan
    • Proceedings of the Korean Powder Metallurgy Institute Conference
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    • 2006.09a
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    • pp.409-410
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    • 2006
  • New applications for PM have resulted in a substantial market growth during the last decades. The clue to these components lies in the utilization of new powders and component production processes. In order to reduce development time and increase the probability for success it is essential to work in close cooperation within the whole chain from powder supplier to component supplier and component user.

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