Supplier‐customer relationships: do partnerships perform better?

Abstract

This paper details a preliminary study into the impact of different supplier‐customer relationships on the performance of manufacturing companies in the clothing industry. This study produces three generic models for supplier‐customer relationships and their corresponding practices, which in essence represent three different levels of supply chain integration. It also develops a set of financial and non‐financial performance measures in order to determine the effectiveness of different types of relationship. A detailed survey was carried out in order to test the theoretical models and compare the performance of companies under the different types of relationship. Results are presented which compare the effect of various forms of supplier‐customer relationships on company performance, using data collected from 38 UK clothing manufacturers.

Conceptual framework development

“…Given the highly complex nature of the fashion supply chain and the high level of outsourcing of manufacture, bureaucratic control mechanisms such as codes of conduct and supplier audits are not infallible (Mares, 2010;Welford and Frost, 2006). Instead, we propose that the nature of the buyer-supplier relationship and the existence of trust and commitment between trading partners has a greater bearing on CSR performance in the supply chain, as it encourages innovation and learning in supplier CSR implementation, beyond that achievable via a compliance-based approach (Valsamakis and Groves, 1998;Frenkel and Scott, 2002). The principles of SCM may thus form the basis of successful CSR implementation in the fashion supply chain.…”

“…High trust levels are also conducive to organisational innovation (Fukuyama, 1995). In a partnership characterised by trust, there is a push towards continuous improvement of the relationship for the mutual benefit of both partners (Valsamakis and Groves, 1998). For example, Frenkel and Scott's (2002) study of Asian athletic shoe manufacturers found that collaborative trading relationships were dynamic and promoted joint learning and innovation, whereas in compliance-type relationships the setting of functional targets merely resulted in their achievement and maintenance, rather than a push for further improvement.…”

Gestão logística da cadeia produtiva do gado de corte: uma proposta para melhorar o processo de integração entre frigorífico e o fornecedor

“…Estudam os fatores inerentes, que fazem das parcerias entre integrantes da cadeia de suprimentos um sucesso. Concomitante a isso, pesquisadores tem demonstrado a possibilidade de constatar que a relação empresa-fornecedor sofre de déficit de confiança mútua, gerando oportunidades de melhorias para esses relacionamentos (Valsamakis & Groves, 1996;Wong, 2002;Chuah et al, 2010;Ambrose, Marshall, Lynch, 2010;Sharma, 2013).…”

ISO 9000 moderation role over supply chain alignment in manufacturing context

“…In that sense, companies started to realize the importance of looking outside the walls of their organizations and started to develop cooperative and mutually beneficial relationships with their supply chain partners (Prajogo et al, 2012). However, supply chain management success necessitates upstream and downstream partners to align and synchronize all supply chain activities that create value for customers (Valsamakis and Groves, 1996). Spekman et al (1998); Van Der Vaart and Van Donk (2006) and Wong et al (2012) mentioned that each part of the supply chain must be aware of other part's needs and thus buyers should align their customers' expectations with their suppliers capabilities.…”