The relationships between supplier development, commitment, social capital accumulation and performance improvement

Krause, Daniel R.; Handfield, Robert; Tyler, Beverly B.

doi:10.1016/j.jom.2006.05.007

Cited by 960 publications

(1,252 citation statements)

References 105 publications

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“…Carr & Pearson, 1999;Choi & Hartley, 1996;Corsten, Gruen, & Peyinghaus, 2011;Krause, Handfield, & Tyler, 2007;Salmi, 2006).In our formal interviews, the managers in the supply chain department, when asked to describe their relationship with suppliers, generally concurred that it was a good and interdependent relationship, despite a very demanding environment where the volumes and velocity are high. Good relationships with suppliers are crucial to cruise lines, for the time windows for loading supplies are frozen and no second chance exists for re-supplying the ships.…”

Section: The Supplier Relationsmentioning

confidence: 83%

Cruise ship suppliers: A field study of the supplier relationship characteristics in a service supply chain

Véronneau

Roy

Beaulieu

2015

Tourism Management Perspectives

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Section: The Supplier Relationsmentioning

confidence: 83%

Cruise ship suppliers: A field study of the supplier relationship characteristics in a service supply chain

Véronneau

Roy

Beaulieu

2015

Tourism Management Perspectives

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“…As such, this area has been researched extensively and we refer the reader to literature reviews focusing on the selection criteria and decision-making process (Weber et al, 1991;De Boer et al, 2001;Aissaoui et al, 2007;Ho et al, 2010;Agarwal et al, 2011), as well as "green" supplier selection (Govindan et al, 2013). Research has begun to shift away from more simple transaction cost economic approaches (Williamson, 1985;Dyer, 1997) and toward social capital theories (Krause et al, 2007;Carey et al, 2011), which capture more of the nuances of the inter-firm dynamics.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Krause et al (2007) found that cognitive capital can be an important contributor to the buying firm's improvement in cost, total cost, quality, delivery, and flexibility. Cognitive capital can also be a precursor to structural capital.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This activity could be tangible, such as providing tooling or equipment, or informational, such as training, performance feedback, or engineering support. Krause et al (2007) underscore supplier development's strategic importance to relationship building because of the "shared knowledge and shared asset investment" it brings. The literature generally supports the belief that supplier development could lead to a competitive advantage to the buying firm (Monczka et al, 1993;Krause, 1997;Vickery et al, 2003;Li et al, 2012).…”

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confidence: 99%

See 1 more Smart Citation

Recycling procurement strategies with variable yield suppliers

Rowe

Ekşioğlu

2015

Ann Oper Res

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Companies are no longer judged on financial performance alone, but rather on their "Triple-Bottom Line", which accounts for social and environmental measures as well. This leads companies to investigate the sustainability of their operations and their products. Between the increasing cost of virgin raw materials and customers demanding post-consumer product content, manufacturers have begun looking at recycled material options. This paper addresses a procurement issue facing a polystyrene packaging manufacturer considering its optimal purchasing strategies between two suppliers -one providing virgin material, the other offering recycled material. A single-period scenario is modeled where each supplier sells product with a known yield distribution at market pricing. The manufacturer must choose whether to sole-source or dual-source, as well as determine how much material to purchase from each supplier to meet deterministic demand. Our results indicate that there is a range of prices from the recycled material supplier where dual-sourcing will lead to higher manufacturer profits compared to solesourcing. We show, based on the procurement strategy, the optimal quantities to purchase to maximize manufacturer's expected profit.We then investigate the area of supplier development and how the manufacturer can improve their expected profit by investing in their supplier's quality improvement effort. The questions addressed are how much the manufacturer would be willing to invest and how they ensure the proper return on their investment. This paper determines the expected increase in profit for the manufacturer from yield improvement projects at a supplier, which therefore becomes the upper threshold for investment. We also find that a company can err in their project acceptance criteria if they have an approval process that views project acceptance myopically rather than holistically.Lastly, we develop a systematic and comprehensive approach to the supplier selection process. We utilize the fundamental concepts behind W. Edwards Deming's Plan-Do-Study-Act improvement cycle and apply them to the supplier selection process.We also present analytic and numerical study results that can be used in conjunction with contractual mechanisms to not only overcome issues such as free riding, but to also incentivize suppliers to engage in supplier development projects they may not have otherwise undertaken. In order to understand why companies have become more attentive to the issue of recycling, one must look back over the past few decades. Firms have faced increased scrutiny on the environmental impact surrounding the disposal of consumer goods, the disposition of production by-products, and how they act as corporate citizens. No longer are companies judged solely on their financial measurements. They are now being evaluated on the "Triple Bottom Line". This metric measures a firm's social and environmental performance, as well as its economic performance. Manufacturers must 2 now address how their products impact the environment...

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“…Several authors have addressed how relationships beyond firm's boundaries could lead to superior value creation in order to achieve sustainable competitive advantage (Dyer & Nobeoka, 2000;Dyer & Syngh, 1998;Flynn, Huo, & Zhao, 2010;Krause, Handfield, & Tyler, 2007;Mesquita, Anand, & Brush, 2008). In this competitive environment, Supply Chain Management (SCM) has emerged as an important strategy to develop relationships and improve firm performance (for reviews, see Chen & Paulraj, 2004;Terpend, Tyler, Krause, & Handfield, 2008).…”

Section: Introductionmentioning

confidence: 99%

Evaluating Supply Chain Management: A Methodology Based on a Theoretical Model

et al. 2015

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ResumoApesar do crescente interesse quanto à Gestão da Cadeia de Suprimentos (GCS) por parte de pesquisadores e profissionais, ainda há uma lacuna na literatura no que tange às metodologias que orientam e apoiam a avaliação da GCS. As metodologias mais desenvolvidas foram fornecidas por empresas de consultoria e apresentam restrições para publicação e uso. Neste trabalho, é proposta uma metodologia para avaliar o grau de adesão das empresas a partir de um modelo conceitual de GCS. A metodologia é baseada na contribuição original de Cooper, Lambert e Pagh e envolve a análise de 11 eixos referenciais que foram estabelecidos por meio de processos-chave de negócios. A aplicabilidade do modelo proposto foi analisada a partir dos resultados de entrevistas com acadêmicos e profissionais, bem como em relação a um estudo de caso desenvolvido em três empresas focais e suas cadeias. Em termos gerais, a metodologia pode ser considerada como um instrumento de diagnóstico que permite às empresas avaliarem a maturidade de suas práticas em GCS. Por meio dessa gestão, as empresas podem identificar e implementar ações para melhorar o grau de aderência ao modelo de referência e usufruir dos benefícios atribuídos à GCS.Palavras-chave: gestão da cadeia de suprimentos; processos dos negócios; iniciativas e práticas de GCS. AbstractDespite the increasing interest in supply chain management (SCM) by researchers and practitioners, there is still a lack of academic literature concerning topics such as methodologies to guide and support SCM evaluation. Most developed methodologies have been provided by consulting companies and are restricted in their publication and use. This article presents a methodology for evaluating companies' degree of adherence to a SCM conceptual model. The methodology is based on Cooper, Lambert and Pagh's original contribution and involves analysis of eleven referential axes established from key business processes, horizontal structures, and initiatives & practices. We analyze the applicability of the proposed model based on findings from interviews with experts -academics and practitioners -as well as from case studies of three focal firms and their supply chains. In general terms, the methodology can be considered a diagnostic instrument that allows companies to evaluate their maturity regarding SCM practices. From this diagnosis, firms can identify and implement activities to improve degree of adherence to the reference model and achieve SCM benefits. The methodology aims to contribute to SCM theory development. It is an initial, but structured, reference for translating a theoretical approach into practical aspects.

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The relationships between supplier development, commitment, social capital accumulation and performance improvement

Cited by 960 publications

References 105 publications

Cruise ship suppliers: A field study of the supplier relationship characteristics in a service supply chain

Cruise ship suppliers: A field study of the supplier relationship characteristics in a service supply chain

Recycling procurement strategies with variable yield suppliers

Evaluating Supply Chain Management: A Methodology Based on a Theoretical Model

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