• Title/Summary/Keyword: Supplier Strategy

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An Empirical Study on Supplier Selection based on Analytic Hierarchy Process (공급업체 선정에 대한 의사결정에 관한 연구)

  • Lee, Uk-Gi;Kim, Ju-Wan
    • 한국디지털정책학회:학술대회논문집
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    • 2005.11a
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    • pp.367-381
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    • 2005
  • On the situation cooperating with business partners on the supply chain, systematic decision making process is a critical issue for them. The two major issues of purchasing strategy such as selecting vendors and managing them are important part of their overall business activities. This study mainly focus on the former issue of the vendor selection. Through the empirical study, analytical hierarchy process (AHP) method was applied to select vendors among supplier vendors based on four selection criteria such as the level of quality, product on management ability, delivery, and price. The results of study showed the main criteria of vender selection was the ability of quality management. The vender selected based on AHP and the current selection method was different, but implicitly projected the dilemma situation between quality and price which occurs in decision making process of real life.

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Innovation and Employment in Korean Service Sector - A firm Level Analysis (한국의 서비스업에서 기술혁신전략이 고용에 미치는 영향 - 기업수준의 연구)

  • Park, Song-Kun;Kim, Byung-Keun
    • Journal of Korea Technology Innovation Society
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    • v.14 no.2
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    • pp.223-245
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    • 2011
  • We have analysed the impact of innovation on the employment in the Korean Service sector using KIS 2006 data. Our study is based on Bogliacino and Pianta (2010)'s model, which involves two main innovation strategies, technological competitiveness and cost competitiveness, as the main explanatory innovation variables for the employment dynamics. Empirical results show that an increase in demand was the strongest driver for an increase in employment in all four service sectors, including Science-based, specialized supplier, size and information intensive, and supplier dominated. Innovation strategy appeared to have a significant effect on employment at the firm level; Technological competitiveness showed a positive effect on employment in science based sector while cost competitiveness appeared to give a negative effect in specialized supplier sector. The firms in size and information intensive sector showed that increase in wages gives negative impact on their employment. However, cost competitiveness did not give any significant effect on employment dynamics of firms in size and information intensive sector and supplier dominated sector. This finding is different from the research of Bogliacino and Pianta (2010) on the European countries. One possible explanation would be that innovation strategy does not affect employment of firms in size and information intensive sector and supplier dominated sector since the level of innovativeness of these sectors in Korea fall behind that of European countries.

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Study of the Effects of Supplier Monitoring on Shop floor Productivity (공급사 모니터링이 현장생산성에 미치는 영향에 관한 연구)

  • Cho, BooYun;Kang, Gi-Choon;Hyun, MinCheol
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.15 no.12
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    • pp.7025-7039
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    • 2014
  • Focal companies (hereafter called buyers) adopt outsourcing practices from a supply chain management strategy to be competitive. Buyers face the bridge transfer after outsourcing contracts, and the monitoring practices would be the only control mechanism left to prevent losing control over the suppliers. This study suggests the set of monitoring practices (i.e., capability, activity and outcome monitoring) as the independent variables to enhance the buyer-supplier collaboration and supplier's performance. In addition the buyer's efforts of monitoring are assumed to influence the buyer's shop floor productivity mediated by the supplier's performance and buyer-supplier collaboration. The results showed that the monitoring practices are meaningful antecedents to the supplier's performance and buyer-supplier collaboration, which fully mediates between the monitoring practices and buyer's shop floor productivity. The mediating role of the buyer-supplier collaboration between activity monitoring and shop floor productive has been rejected, because the negative effect of activity monitoring on buyer-supplier collaboration conflicts with the positive impact of buyer-supplier collaboration on shop floor productive. The theoretical contribution and managerial implications with limitations have been discussed.

The effect of domain understanding on IT outsourcing performance based on a learning model of IT outsourcing (IT아웃소싱 환경에서 도메인이해도가 성과에 미치는 영향: 조직학습, 지식이전 및 아웃소싱비율의 조절효과를 중심으로)

  • Won, Youshin;Lee, Choong C.;Yun, Haejung
    • Knowledge Management Research
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    • v.17 no.2
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    • pp.205-229
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    • 2016
  • Owing to the current economic downturn, one of the most important goals of the organizations who are actively involved in Information Technology Outsourcing (ITO) is the cost efficiency. We focus on supplier firm's domain understanding to make the cost efficiency; therefore, we examine how the disadvantages from lower domain knowledges affect outsourcing performance moderated by outsourcing ratio and knowledge change environments. That is, if clients can endure disadvantage from service providers' lower domain knowledge, they can achieve cost efficiency by choosing lower domain knowledge suppliers with less expensive cost. To examine performance gap depending on the environments, we applied 'A Learning Model of IT Outsourcing' which is suggested by previous literature. As a result, we suggest five strategies for clients to contract with suppliers which have lower domain knowledge: (1) Prepare the strategy to endure disadvantages from the early stage. (2) Make the strategy depending on outsourcing ratio. (3) Knowledge transfer between organizations is important. (4) Make a short-term contract if they do not have good environments for organizational learning. (5) Client's knowledge change environments are more important than those of supplier's. Finally, we offer various implications for clients and suppliers in IT outsourcing.

A Comparison Study on Retailer-managed and Vendor-managed Inventory Policies in the Retail Supply Chain (소매점 공급사슬에서 소매점주도와 공급자주도 재고정책에 대한 비교 연구)

  • Hong, Sung-Chul;Park, Yang-Byung
    • Journal of Korean Institute of Industrial Engineers
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    • v.32 no.4
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    • pp.382-392
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    • 2006
  • Vendor-managed inventory policy(VMIP) is a supply-chain initiative where the supplier is authorized to manage inventories of items at retail locations. In VMIP, the supplier monitors sales and stock information at retail locations and makes decisions of inventory replenishment and transportation simultaneously. VMIP has been known as an effective supply chain strategy that can realize many of benefits obtainable only in a fully integrated supply chain. However, VMIP does not always lead to lower the supply chain cost. It sometimes generates the total supply chain cost higher than the traditional retailer-managed inventory policy (RMIP). In this paper, we perform a comparison study on RMIP and VMIP in the retail supply chain which consists of a single supplier and a number of retailers. We formulate mixed integer programming models for both RMIP and VMIP with vehicle routing problems and perform computational experiments on various test problems. Furthermore, we derive the conditions which guarantee the dominant position for VMIP with respect to total supply chain cost in the simple retail supply chain.

Development of ESS Scheduling Algorithm to Maximize the Potential Profitability of PV Generation Supplier in South Korea

  • Kong, Junhyuk;Jufri, Fauzan Hanif;Kang, Byung O;Jung, Jaesung
    • Journal of Electrical Engineering and Technology
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    • v.13 no.6
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    • pp.2227-2235
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    • 2018
  • Under the current policies and compensation rules in South Korea, Photovoltaic (PV) generation supplier can maximize the profit by combining PV generation with Energy Storage System (ESS). However, the existing operational strategy of ESS is not able to maximize the profit due to the limitation of ESS capacity. In this paper, new ESS scheduling algorithm is introduced by utilizing the System Marginal Price (SMP) and PV generation forecasting to maximize the profits of PV generation supplier. The proposed algorithm determines the charging time of ESS by ranking the charging schedule from low to high SMP when PV generation is more than enough to charge ESS. The discharging time of ESS is determined by ranking the discharging schedule from high to low SMP when ESS energy is not enough to maintain the discharging. To compensate forecasting error, the algorithm is updated every hour to apply the up-to-date information. The simulation is performed to verify the effectiveness of the proposed algorithm by using actual PV generation and ESS information.

The Effectiveness on the Perception of Service Quality in MRO Transactions

  • Im, Kyoung-Jae;Kim, Ha-Ryong;Yang, Hoe-Chang
    • Asian Journal of Business Environment
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    • v.7 no.4
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    • pp.11-15
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    • 2017
  • Purpose - This study aims to provide a clue on which factors current managers and many more potential entrepreneurial applicants were required to concentrate on presenting effective research methods in the effects of purchasing companies' perception of service quality about suppliers of MRO industrial goods on the quality of relationships. Research design, data, and methodology - To accomplish the purpose of this study, we plan to conduct a research model with factors of MRO service quality as the leading variables and conduct a causal analysis using regression analysis on their influence relations. Results - In order to achieve the above purpose, it is necessary to select service quality factors suitable for the characteristics of MRO industrial goods supplier companies. And it is necessary to develop a plan for improving the relationship quality with buyer companies by understanding the sales orientation of MRO industrial goods supplier companies. Also, they develop a combined strategy capable of facilitating relationship quality by clarifying the role of rapport. Conclusions - It is expected that these results will provide strategic clues which service quality factors should be improved from the perspective of supplier companies and will provide various information on educational training sales skills of the sales staff.

THE FIT BETWEEN NEW PRODUCT STRATEGY AND VALUE CHAIN STRATEGY : A SYSTEM DYNAMICS PERSPECTIVE

  • Heungshik Oh;Kim, Bowon
    • Proceedings of the Korea Society for Simulation Conference
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    • 2001.10a
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    • pp.37-43
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    • 2001
  • New product development has been a key element fur organizational evolution. The bulk of research about new product strategy has focused solely on new product development function itself. This paper investigates cross-functional elements in new product development. More specifically, we suggest that there must exist a fit between new product strategy and value chain strategy. It means that, in order to support new product development activity, there must exist a relevant value chain strategy. We consider three types of integration - internal integration, customer integration, and supplier integration - as strategic elements of value chain strategy. For the case of new product strategy, we consider market newness and product technology unfamiliarity as strategic elements. We also consider two types of learning characteristic, i.e., \\\"fast-adaptive learning\\\" and \\\"slow-adaptive leaning\\\" as control factor. Learning characteristic represents firms organizational capability related with organizational learning. For example, fur fast-adaptive learning case, the effect of integration appears early in time. System dynamics simulation is employed to verify our research framework. The results exhibit that there must exist cross-functional relationships between value chain strategy and new product strategy in order to shorten total development time.al development time.

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Improving Product Quality through Conflict Management: A Study of Hong Kong ODM Suppliers

  • Lam, Ping-Kit;Chin, Kwai-Sang
    • International Journal of Quality Innovation
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    • v.5 no.2
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    • pp.70-78
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    • 2004
  • Client-supplier collaboration in new product development (NPD) has been a strategy in response to fierce global competition. Traditionally, Hong Kong suppliers collaborate with worldwide clients through original equipment manufacturing (OEM) arrangement in which suppliers manufacture products according to clients' design. In recent years, a growing number of Hong Kong suppliers have transformed to original design manufacturing (ODM) in which they are assigned a design responsibility other than manufacturing products. The ODM arrangement necessitates a close interaction between clients and suppliers, which brings about intense conflict. Conflict has been recognized as an important factor affecting NPD performance including product quality. This paper studies the conflict handling practices of Hong Kong ODM suppliers based on 87 survey data. The results show that the suppliers frequently adopt effective conflict handling practices by which they can develop products of good quality through better design decisions. The results also suggest that the use of ineffective conflict handling behaviors, particularly avoiding, should be reduced for better product quality.

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.