On Contractual Periods in Supplier Development

Worthmann, Karl; Braun, Philipp; Proch, Michael; Schlüchtermann, Jörg; Pannek, Jürgen

doi:10.1016/j.ifacol.2016.03.011

Cited by 7 publications

(18 citation statements)

References 18 publications

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“…4. Finally, contract-term factors were related to the argument that a limited contract period undermines suppliers' efforts to improve buyer-related performance (Terpend and Krause, 2015) and that supplier development might be enhanced by dynamically extending the contract (Worthmann et al, 2016). This study shows that there is no significant difference between high and low-performing supplier groups in this regard, i.e., a limited contract duration does not undermine lowperformance suppliers' efforts to improve performance.…”

Section: Discussionmentioning

confidence: 80%

“…Thus, this is a proper environment to test the influence of limited contract duration. However, such an environment excludes supplier development enhancement by dynamically extending the contract (Worthmann et al, 2016). Nevertheless, further research could investigate how a shorter contract duration, up to five years, might influence supplier efforts to improve buyer-relevant performance; it could also look into what factors are influenced by a short-term contract duration, since we know that without the assurance of a long-term contract, a supplier is unlikely to make investments that would reduce cost for one particular buyer (Terpend and Krause, 2015).…”

Section: Discussionmentioning

confidence: 99%

“…Studies show that supply chain partners' intentions to invest in supplier development critically depend on the length of the contract period. Supplier development can be improved by dynamically extending the contract, thus avoiding the risk of being contractually tied for an unnecessarily long period (Worthmann et al, 2016). Moreover, without the assurance of a long-term contract, a supplier is unlikely to make investments that would reduce the cost for one particular buyer and would constitute an unacceptable risk (Terpend and Krause, 2015).…”

Section: Collaboration Performancementioning

confidence: 99%

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In search of high-performance workplace factors among SMEs

GERCANS¹

2021

JBM

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Purpose. Small and medium-sized enterprises (SMEs) are essential contributors to employment creation and global economic growth. For long-term survival in the market, SMEs need the capabilities to organise their resources in a way that leads to high performance and competitive advantage. Based on the conceptual framework of entrepreneurial orientation and the resourcebased view of the firm, performance-influencing organisational factors among SMEs providing manufacturing services are analysed. Methodology. In this study, the financial performance of 47 SMEs was analysed, and a survey of 499 employees was conducted. Financial performance was evaluated by ROA and ROS, and productivity was measured by turnover and net profit per employee to identify high-performance SMEs. Competitive aggressiveness was measured by changes in the market share to verify whether the high-performance group of SMEs corresponds to the entrepreneurial orientation construct. A questionnaire with a six-point Likert scale and the Mann–Whitney U test were used to test the hypotheses. Findings. The managerial capabilities to create strong workplace performance exist where: (a) management has a respectful attitude toward employees, (b) management supports the development of employees’ professional skills, (c) employees are provided with everything they need to achieve high job results, (d) employees want to work for the company in the long term, (e) remuneration to employees is fully in line with their level of professional skills, (f) co-workers perform their work effectively, (g) employees work shorter job shifts. These elements constitute the knowledge-based resources of high-performance SMEs, giving them, at a minimum, a temporary competitive advantage. Value. The findings of this article contribute to the literature on entrepreneurial orientation, supplementing the construct of organisational factors with the characteristics of managerial capabilities leading to high performance and competitive advantage. Keywords: entrepreneurial orientation, managerial capability, performance, forestry SMEs Paper category: research paper

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Section: Discussionmentioning

confidence: 80%

Section: Discussionmentioning

confidence: 99%

Section: Collaboration Performancementioning

confidence: 99%

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In search of high-performance workplace factors among SMEs

GERCANS¹

2021

JBM

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“…See, for example, Grüne and Pannek for details about this control scheme as well, for example, applications [37]. e application of mathematical models in general and of control theory is increasing in decision-making in supply chain management [11][12][13]38]. e MPC itself is a well-established simulation strategy to deal with uncertainties in supply chains, see, e.g., [39].…”

Section: Methodsmentioning

confidence: 99%

Optimization of Supplier Development under Market Dynamics

Dastyar

Rippel

Freitag

2020

Mathematical Problems in Engineering

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Over the last decades, supplier development has become an increasingly important concept to remain competitive in today’s markets. Therefore, manufacturers invest resources in their suppliers to increase their abilities and, ultimately, to reduce their product prices. Thereby, most approaches found in the literature focus on long-term supplier development programs. Nevertheless, today’s volatile and dynamic markets require flexible approaches to deal with this complexity. We apply Model Predictive Control to optimize the number of supplier development projects in order to achieve flexibility while maintaining a certain level of security for all parties. Thereby, the article focusses on a multimanufacturer scenario, where two manufacturers aim to develop the same supplier. These manufacturers can establish different levels of horizontal collaboration. While previous results already show the benefits of applying this approach to a static scenario, this article extends this formulation by introducing market dynamics in the numerical simulations as well as into the optimization approach. Thus, the article proposes to derive regression models using real-world data. The article evaluates the effects of real-world market dynamics on two use cases: an automotive use case and a use case from the mobile phone sector. The results show that assuming market dynamics during the optimization leads to increased or at least close-to-equal revenues across the involved partners. The average increase ranges from approximately 1% to 5% depending on the type and magnitude of the dynamics. Thereby, the results differ depending on the selected collaboration scheme. While a full-cooperative collaboration scheme benefits the least from regarding dynamics in the optimization, it results in the highest overall revenue across all partners.

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“…Consequently, MPC is a well-established strategy to deal with uncertainties in supply chains, see, e.g., [33,52] and [19]. In this paper, MPC is first used in supplier development to mitigate possible contractual hazards by dynamical extending the contract, see also our preliminary study [55].…”

Section: Related Literaturementioning

confidence: 99%

Towards dynamic contract extension in supplier development

et al. 2016

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We consider supplier development within a supply chain consisting of a single manufacturer and a single supplier. Because investments in supplier development are usually relationship-specific, safeguard mechanisms against the hazards of partner opportunism have to be installed. Here, formal contracts are considered as the primary measure to safeguard investments. However, formal contracts entail certain risks, e.g., a lack of flexibility, particular in an ambiguous environment. We propose a receding horizon control scheme to mitigate possible contractual drawbacks while significantly enhancing the supplier development process and, thus, to increase the overall supply chain profit. Our findings are validated by a numerical case study.

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On Contractual Periods in Supplier Development

Cited by 7 publications

References 18 publications

In search of high-performance workplace factors among SMEs

In search of high-performance workplace factors among SMEs

Optimization of Supplier Development under Market Dynamics

Towards dynamic contract extension in supplier development

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