Small local firms inside the supply chain: Challenges and perspectives

The authors provide the results of an empirical research carried out in north-east Italy and completed in 1992, which was aimed at investigating the rapport between large manufacturers operating on the multidomestic and global markets and the small local supplying concerns. This research identifies that the globalization process has had a strong impact in the relations with suppliers. The purchasing firms have adopted a particular approach when selecting the suppliers. This has involved widening their previous geographic areas of contact, even making use of foreign sources. Consequently, the local micro units either will become excluded from future business relations with the purchasing organizations, or will be relegated into lower levels of the supply chain. Today small and very small units working as suppliers with direct link with large-scale clients, face many challenges: they should now renew their know-how and skills, develop a new managerial and organizational sense, and recognise the need to invest in new forms other than machinery and processes. The empirical study clearly showed both the limits and the structural weakness of such small units and provided some indications for growth in their technical-productive potential.     

New product development strategies of suppliers of emerging technologies—a case study of expert systems

Rapid change, high levels of risk and uncertainty is the context in which suppliers of emerging technologies are developing strategies for new product development. Collaboration with “progressive” customers and the formation of lateral links with suppliers and manufacturers are options available for effective innovation. Approaches to innovation of established and start‐up companies operating in the embryonic expert systems market in the UK are discussed and salient features of a nascent product market outlined.     

Airline catering service operation,schedule nervousness and collective efficacy on performance: Hong Kong evidence

Carriers the world over depend on airline catering service providers to manage the catering and logistics of these complex operations. The logistics of onboard catering service material between suppliers, warehouses and the caterers differ significantly from the classical material flow in other industries between the suppliers, manufacturers and customers. The airline catering business can tolerate minimal flexibility relating to scheduling issues. Continuous changes in the schedule can undermine the confidence in the system and result in disruptions in the production or delivery systems. This study aims to study how the various determinants are correlated with schedule instability of the airline catering operations. The findings show the significant correlation between internal operation and relationship with customer, which affect the work efficacy at the collective level.     

Information Sharing in Global Supply Chain Alliances

The post–WWII economic expansion of economies such as Japan, South Korea, Hong Kong, Taiwan, Singapore, and more recently China and India was enabled to a significant degree by the increasingly complex, global supply chain networks of large Original Equipment manufacturers (OEMs) in the United States, European Union, and Japan. By linking buyers and suppliers across countries and industries, supply chain management (SCM) practices have a large impact on the economic fortunes of companies and countries throughout the world. Nowhere has the effect of this mutual interdependence been felt more strongly than between the U.S. companies and the Asia-Pacific market. Although the benefits of SCM are well documented, some evidence suggests that the reality of SCM implementation can create additional pressures for suppliers. We identify key problem areas experienced by suppliers and their link to the type of information shared by buying firms. The problem area experienced by most suppliers relates to issues of dependence in the alliance. Mere information sharing is insufficient for a successful alliance, and more information can be associated with a number of problems. For example, lack of information sharing can be associated with a supplier's perception of the buyer expecting excessive support. However, greater information sharing can be associated with a supplier's perception of the buyer passing on an excessive burden. Sharing of financial information is perceived as intrusive and controlling. These apparent contradictions uncover the complexity of the supply chain alliance. The moderating factors appear to be open communication and joint sharing of problem solving procedures—factors identified by suppliers that define a world-class buyer.     

Wal-Mart: Supplier performance and market power

This research seeks to further the understanding of the relationship between Wal-Mart and its suppliers. 1988-1994 demonstrates Wal-Mart's market power in relation to manufacturers [Bloom PN, Perry, VG. Retailer power and supplier welfare: the case of Wal-Mart. Journal of Retailing 2001; 77( 3): 379-396.]. Wal-Mart suppliers for that period had lower profits than non-suppliers, which indicate a dependency model of market power when suppliers give concessions to a stronger retailer in order to obtain or maintain the relationship. Wal-Mart's dramatic growth and increasing marketing power since the 1988-1994 period offer an opportunity to retest previous findings and further the understanding of a major retailer's strategy for managing suppliers through the use of the strategic profit model. Initial results indicate that gross margin is significantly less for Wal-Mart suppliers than non-suppliers indicating pricing concessions and a dependency model of market power. However, a fixed-effects model controlling for unobservable firm characteristics such as strategic choice suggest that Wal-Mart suppliers are self-selecting or are implicitly pre-screened such that Wal-Mart suppliers have a low-cost strategy and choose lower returns as a market strategy. Findings indicate that small firms do experience a dependency model in that they have lower gross margin, lower operating income, and higher turnover. However, considering fixed-effects for these firms, small manufacturers experience only higher turnover as a result of doing business with Wal-Mart, thus indicating more of a partner-type model of market power.     

Using diffusion models to forecast market size in emerging markets with applications to the Chinese car market

Marketing managers have to forecast the market size and this forecast guides strategic decisions whether to continue exporting, open new factories or expand existing production operations. Forecasting sales and the market size is a challenging task; even more so in emerging markets where data is limited and the market demand is changeable. This research proposes a novel approach that applies diffusion models using car ownership data to forecast car sales. Car ownership data may be easier to access than sales data in emerging markets but marketing managers are more interested in the sales forecast. Researchers propose using diffusion models to forecast the adoption of new products or products which are new to consumers in a market. This research demonstrates that marketing managers can use diffusion models to predict car sales in China where cars are new products to most consumers in this market. Since the majority of car buyers in China are first time buyers, car manufacturers and retailers must also forecast when the market composition will change. This effectively means predicting when first time car buying will start to slow down and repeat/replacement purchase or second hand car purchase will become more important. To forecast both sales and market composition change, marketing managers must choose a robust model. Managers want insights from models that have been tested robustly especially in less stable market conditions. In this context, this study illustrates the value of using a rolling forecast instead of a fixed horizon approach when comparing and choosing which model to use to forecast both sales and market composition change for the Chinese car market.     

浅析我国轿车市场的供求变动趋势及其影响因素

我国轿车市场仍处在成长期,各大厂商的应对策略和发展战略值得关注。本文运用经济理论分别从市场需求和消费者行为、厂商战略、国家政策和国际环境这四个方面对我国轿车市场发展现状和趋势的成因以及不同类型厂商的竞争战略加以分析和解释。     

Balancing the sequential logic of quality constructs in manufacturing-supplier relationships — Causes and outcomes

Manufacturers in business markets are experiencing a strong trend towards close versus distant relationships with suppliers. Three key relationship constructs in academic research are trust, commitment, and satisfaction. Although the relevant literature holds some evidence that trust and commitment are antecedent to satisfaction, the possibility that satisfaction plays a key mediation role between trust/commitment and other important outcomes (i.e., coordination, cooperation, and continuity) receives scant examination. This study tests this conceptual model by examining the relationships between manufacturers and suppliers. A random sample of small-to-medium-sized Norwegian manufacturers was contacted by phone in order to identify potential key informants. Shortly thereafter, a total of 581 surveys were mailed to the key informants. Two hundred and twelve surveys were returned, representing a response rate of 36.5%. Results support the conceptual model presented; trust and commitment relate positively to satisfaction; and satisfaction, in turn, relates positively to all three outcomes of coordination, cooperation, and continuity.     

Using social and economic incentives to discourage Chinese suppliers from product adulteration

The American public raised serious concerns about product safety in 2007, when the number of product recalls broke a new record. Following a temporary drop in 2008, both the number and retail value of recalled units have been increasing, despite various efforts exerted by government agencies and private companies to combat this trend. Currently, many countries—including China itself—are expressing serious concern over adulterated or unsafe food made or sold in China. What are the underlying reasons for some Chinese suppliers to adulterate product? When law enforcement is still weak in China, what can western manufacturers do to reduce the risk of product adulteration? To develop effective deterrence mechanisms, we first identify four underlying factors that create incentives for some Chinese suppliers to produce unsafe products. Then we propose ideas to discourage Chinese suppliers from producing adulterated products based on two underlying strategies: (1) creating economic incentives through contingent payments, and (2) creating a social incentive by threatening public exposure through the power of the Internet and social networking sites.     

基于多Agent的协同供应链模型

供应链通过获取原材料,转换成最终产品,交付最终用户等一系列过程将供应商、制造商、仓储、分销中心以及零售商等形成一个巨大的网络体系。当前,随着企业经营模式的变化,协同与伙伴管理成为供应链变革的推动力量。而协同供应链能够对市场变化和用户需求形成快速响应。将Agent理论应用于协同供应链管理,分析协同供应链的主要特征,并提出基于多Agent的协同供应链模型。     

The process of internationalization: how Swedish food retailers perceive their domestic supplier relationships

This paper focuses on how retailer–manufacturer relationships are influenced by the process of internationalization. Empirically, we study the Swedish food sector. It has previously been domestically oriented and concentrated. As Sweden joined the EU in 1995, however, a lot of entry barriers have disappeared and Swedish food retailers have been given new purchasing opportunities. We investigate how these changes have affected the retailers' relationships with their suppliers.Theoretically the paper is based on a network perspective and resource dependence theory.It develops and tests a set of hypotheses on howa retailer's relationships to its domestic suppliers will change when it gets a greater access to foreign products and suppliers, using a survey of 621 Swedish food retailers. Among other things, the study reveals that while being prepared to buy fewer products from Swedish manufacturers, the retailers still consider it very important to co-operate on a long-term basis with domestic suppliers.     

Eastern-Western supplier-customer relationships in agricultural machinery industry: results of an empirical investigation in the Czech Republic,Hungary, Romania,Ukraine, and Germany

International trade between Germany and the young reform states in Central and Eastern Europe is growing rapidly. Germany is the most important trading partner for nearly all of the Central and Eastern European countries. Nevertheless, there are relatively few empirical studies concerning purchasing activities of western manufacturers in Central and Eastern Europe. Especially the characteristics of successful relationships between Central and Eastern suppliers and their western customers have not been addressed. This paper presents results of a survey carried out in the Czech Republic, Romania, Hungary, Ukraine and Germany. The research reported, contributes towards answering the following research questions. (1) What are the reasons for establishing Eastern-Western supplier-customer relationships? (2) What are the characteristics of German customers buying in Central and Eastern Europe? (3) Which attributes are prominent by Eastern suppliers? (4) What are the ingredients of a successful supplier-customer relationship?The survey showed that many successful relationships between German manufacturers and Central European suppliers have been established. The importance of these relationships for both suppliers and customers is shown by the average share of materials by value bought in Central and Eastern Europe, the high specificity of the purchased materials, the types of contracts employed, and the extent of support activities. Furthermore, the study has identified the requirements and numerous attributes of successful Eastern-Western supplier-customer relationships.     

Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent

This paper investigates the mediating effect of learning intent in transforming local suppliers’ potential absorptive capacity into realized absorptive capacity and its impact on exploitative and exploratory innovation. Using survey data from 155 auto parts manufacturers in Pakistan, we find that local firms’ realized absorptive capacity enables them to develop both exploitative and exploratory innovations. The findings further suggest that local suppliers’ learning intent mediates the relationship between potential and realized absorptive capacity which in turn lead to both types of innovation. In the context of the emerging economy of Pakistan, local suppliers’ absorptive capacity is found to be critically important in spurring exploitative and exploratory innovation, but learning intent enables realized absorptive capacity and thus in conjunction with realized absorptive capacity supports innovation. Consequently, there would be a strong case for policy intervention to assist emerging economy firms in building their absorptive capacity and strengthening their learning intent as a route for promoting innovation and improving their value added position in the global value chains of multinational enterprises.     

The International Reorganisation of Auto Production

This paper aims at assessing whether and how the rise of new countries as important suppliers to the world's leading car producers has changed the structure of the international organisation of auto production over the last decade or has simply caused a shift in the geography of suppliers. By using network analysis, we show that emerging economies caused a structural change in the international organisation of auto production, but their roles are largely peripheral, while the world's leading producers now act as the core of a more hierarchical international division of labour than a decade ago.     

Orchestrating resource base,role, and position: a supplier’s strategy in buyer-dominated relationships

The literature that can be consulted today regarding supplier strategies focuses mainly on the buying company’s opportunities to structure, rationalize and develop its supply base. However, few studies have been undertaken in the automotive industry that focus on the supplier’s view of change. One significant characteristic of a supplier’s development is that it occurs in close relationship with the buying company, a relationship that can be described as buyer-dominated. This article focuses on the need for suppliers to develop their own strategies. The purpose of the article is to identify theoretical and empirical building blocks in a supplier’s strategy in these buyer-dominated relationships, to describe and analyze a supplier’s strategic development from traditional supplier to systems supplier, and to discuss managerial implications. The empirical material consists of a longitudinal in-depth case study, conducted in retrospective as well as in real time, and this study is itself based upon several case studies, including ones of Volvo and Saab Automotive. The findings indicate that the supplier’s systems strategy is a high-risk one, because it is based on an vision of a systems suppliership in the future. Even if the group of supplier has been able to form a close relationship with the end-product manufacturers (Volvo and Saab Automotive), the need remains for it to be able to interpret those manufacturers’ (buyers) actions and adapt its own strategies accordingly. An important feature of the supplier’s strategy should be cooperation with other suppliers and the creation of new structures that consist of a number of previously independent supplier companies. The supplier’s ability to orchestrate resource base, role and position is of great importance.     

Implementation of technology and relationships to supply chain performance: apparel manufacturers' perspectives

Apparel manufacturers operate within a distribution channel with suppliers, retailers and consumers. In a competitive market, apparel manufacturers, in transactions with retailers, must make changes. These changes have potential to affect the supply chain and consequently to add or reduce value of products for the retailer. This study investigated changes in products and services associated with implementation of new technologies. A two-stage design used both a qualitative study and a quantitative study. The qualitative study with 10 industry personnel was used to develop the change variable. The quantitative study had US apparel manufacturers (n = 105) respond to a mailed survey about changes their firms had experienced. Findings indicated that implementation of Quick Response (QR) technologies when moderated by the demographics of fashion level, seasonality, and price point of the product did correspond with changes in product offerings and customer services.     

供应商数量对公司经营绩效的影响

如何对供应库进行优化日益成为企业的重大战略问题之一,而最常见的供应库优化的实践则集中于供应商数量。本文从交易成本、供应商响应度、供应风险和供应商创新等四个方面分析了供应商数量对公司经营绩效的影响,认为供应商数量与原材料存货管理的效率和公司总体经营绩效之间均成倒U形关系。当公司对大量供应商逐渐进行缩减时,交易成本和供应风险降低,同时,供应商的响应度和创新提高,由此导致其经营绩效的改善;但是,当供应商数量缩减到某一个点后,供应商数量的继续缩减则导致供应风险的增大和供应商创新的下降,从而导致其整体经营绩效的下降。     

装配生产型供应链上下游企业间的联系与知识传递

在装配生产型供应链中,生产商与供应商之间技术关联程度较高,随着技术变化速度加快,它们之间的知识传递问题也越来越重要。本文综合装配生产型供应链的产品特征、供应链组织结构、上下游成员间关系、知识传递的行为和知识创造,针对上下游企业之间的知识传递问题构建了一个广泛的研究框架,并且对各个概念进行了细化分析,讨论了影响知识传递的重要因素和影响方式。     

风险喜好型零售商主导的双渠道定价策略研究

一个由生产商和零售商组成的供应链中决策的顺序为:零售商率先根据自己掌握的市场信息公布最大潜在订单数量,生产商根据最大订单数量来调整其批发价格和直销渠道价格,最后零售商才确定其最优订货数量。研究表明,在一个由风险喜好型的零售商和一个风险规避型的供应商组成的供应链中,零售商风险偏好系数超过某一特定值时,随着需求方差的增加,零售渠道最优定价会越来越高;而对于风险规避型供应商,则是随着需求方差和(或)供应商风险规避程度的增加,会选择较低的产品售价以期获得稳定的收入。