Supply chain quality management practices and performance: An empirical study

This study proposed a conceptual framework to study the relationships among three dimensions of supply chain quality management (SCQM) – in-house quality management practices (internal QM), interaction for quality with suppliers on the upstream side of supply chain (upstream QM), and interaction for quality with customers on the downstream side of supply chain (downstream QM) – and their impact on two types of quality performance (conformance quality, and customer satisfaction). Survey data were collected from 238 plants in three industries across eight countries and structural equation modeling was used to test this framework. The results indicate a dominant role of the internal QM in SCQM which has a positive impact on the other SCQM dimensions and two types of quality performance. Downstream QM is found to mediate the relationship between internal QM and customer satisfaction, while there is a lack of direct impact of upstream QM on either type of quality performance.     

Managing the performance of outsourced customer contact centers

This research focuses specifically on customer contact services that have been outsourced to external suppliers. The performance of the contact services supplier directly affects end customer satisfaction which underlines the need for appropriate management of customer contacts and consideration of the end customer's perspective in designing appropriate key performance indicators (KPIs). This research draws on various streams of literature including services purchasing, performance management and service quality to derive propositions on how to manage customer contact services suppliers. These propositions are subsequently investigated in an in-depth case study. The results of the case study show that managing customer contact services suppliers on effectiveness rather than efficiency benefits the overall performance of the supplier. This research shows that quality improvements in both process and service delivery ultimately lead to decreased costs. These improvements will furthermore enhance customer satisfaction and improve buying company performance. The current trend in selecting and managing suppliers for outsourced business processes is on efficiency improvements and cost savings. However, this research shows that this type of focus can actually decrease customer satisfaction and increase costs.     

Supplier relationship portfolio management: A social exchange perspective

Despite the importance of relationship portfolios, it's unclear how a buying firm's differential investment in its suppliers affects the distribution of its supplier relationships and the supplier-provided benefits that result. Drawing from social exchange theory (SET), we assess the sequential linkages among supply management practices, supplier relationship sets that vary in closeness, and relational benefits. Empirically, we adopt a multi-methodological approach that combines abductive case-based and deductive survey-based research. In our case-based approach, interview responses from 34 professionals within a global Tier 1 automotive manufacturer (MFGR) and four of its suppliers, open-ended survey responses from 56 buyers and 86 engineers within MFGR, documentary evidence, and direct observations facilitate the operationalization of supply management practices and relationship closeness constructs. The survey-based study integrates case-based findings and uses response data from sales managers within 292 suppliers to MFGR and matched supplier performance data from MFGR to test a theoretical model of social exchange. In a multi-step process, we apply cluster analysis, multinomial logistic regression, ANOVA, and multiple regression to this aggregated dataset to (1) identify three distinct sets of supplier relationships that are distributed along a relationship closeness continuum, (2) show how specific supply management practices affect the composition of supplier relationship sets that comprise a buying firm's portfolio, and (3) demonstrate how supplier-provided benefits differ across supplier relationship sets. Our results validate the utility of SET as applied to supplier portfolio management and provide insights into buyers' actions that drive closer relationships, minimize risk, and maximize benefits across a supplier portfolio.     

Rater Rating‐Level Bias and Accuracy in Performance Appraisals: The Impact OF Rater Personality,Performance Management Competence,and Rater Accountability

We studied the problem of rating‐level bias and rating accuracy among retail managers of a Fortune 500 retailer. Hypotheses were tested regarding the relationship among managers’ Five‐Factor Model (FFM) personality characteristics, their competence in performance management, and their levels of bias and accuracy in appraisals made in situations differing on levels of rater accountability. Associate store managers (N = 125) rated subordinates, peers and managers under conditions of high and low rater accountability. We found support for the stability of rating‐level bias across rating situations. Raters’ levels of agreeableness and assertiveness were related to mean rating levels across situations, and U‐shaped relationships were found in predicting one measure of rating accuracy such that high and low levels of these two traits were related to greater rating inaccuracy. Conscientiousness scores were significantly (and negatively) correlated with highly accountable mean ratings of subordinates. Performance management competence was related to rating‐level bias in both high‐ and low‐accountability conditions and contributed incremental validity in the prediction of rating level and rating accuracy. Our results indicate that the most lenient raters are more agreeable, less assertive, and less competent in performance management. These raters may also be less accurate. © 2015 Wiley Periodicals, Inc.     

Large firms' changing purchasing requirements and local suppliers: toward a new initiative in northeast England

Northeast England, an old industrial region with higher than average unemployment, also contains state-of-the-art manufacturing plants, many owned by multinational companies. A recent project undertaken for the Northern Development Corporation by Segal Quince Wicksteed, found a very high level of interest among these firms in increasing local purchasing. For many, this was linked to the greater autonomy they had recently gained. Adaptation to competitive pressures and the need to control costs had led to much greater emphasis being placed on quality. This could be achieved only by working with a small number of key suppliers. Much local collaboration was already evident, and there was considerable interest in increasing this if suppliers could be found with the right capabilities and attitudes. In economic development terms, scope was found for new initiatives that could provide highly selective information on possible collaborators and support the development of these large firm: supplier relationships by publicizing the opportunities available and encouraging changes in expectation and attitude.

This article describes the outcome from a project commissioned by the Northern Development Company with funding from the Department of Employment's Regional Enterprise Unit. The project identified current purchasing practices within the northeast of England, in order to identify the scope for new initiatives that would increase the likelihood of large firms buying from locally based suppliers. It was undertaken during the first half of 1988 by Segal Quince Wicksteed, economic and management consultants, with the support of Durham University's Small Business Center.     

Drivers,Practices and Outcomes of Low‐carbon Operations: Approaches of German Automotive Suppliers to Cutting Carbon Emissions

The aim of this paper is to investigate the determinants of measures used by German automotive suppliers to cut carbon emissions, and their impact on performance. To achieve this aim the concept of low‐carbon operations is developed based on the broader concept of sustainable operations. An integrated conceptual model to research the drivers, practices and outcome of low‐carbon operation is derived. The model is tested using variance‐based structural equations modelling with data collected from 159 German automotive suppliers. It is found that stakeholder pressure, and to some extent expectations about competitiveness, drive the adoption of low‐carbon operational practices. The relative and absolute effect of those drivers varies along the different practices. Regarding the outcomes, positive effects on carbon and indirect effects on economic performance are found. However, the results regarding both drivers and outcomes of the practices under consideration show significant differences with respect to firm size. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

An exploration of supplier selection practices across the supply chain

The US auto industry has undergone tremendous changes during the past decade. Companies have increased their level of out-sourcing and are relying more heavily on their supply chain as a source of their competitive advantage. Thus, determining which suppliers to include in the supplier chain has become a key strategic consideration. However, previous studies of supplier selection have not considered a company's position in the supply chain. In this paper, we compare supplier-selection practices based on a survey of companies at different levels in the auto industry. Our findings rebut the common thinking that indirect suppliers who are more involved in commodity purchasing emphasize initial price and de-emphasize relational considerations. We learned that selecting suppliers based on the potential for a cooperative, long-term relationship is just as important to direct and indirect suppliers as it is to the auto assemblers. We also learned that price is one of the least important selection items, regardless of position on the supply chain. Further, contrary to the existing understanding that quality and delivery are separate constructs, they formed a single construct in our study. To summarize the empirical results, no differences among the auto assemblers, direct suppliers, and indirect suppliers were found for the importance placed on consistency (quality and delivery), reliability, relationship, flexibility, price, and service. Statistically significant differences were found between the auto assemblers and indirect suppliers on the importance placed on technological capability and financial issues.     

Internal and external suppliers in manufacturing networks—An empirical analysis

The purpose of the paper is to explore the way manufacturing firms use internal and external suppliers in the design and management of manufacturing networks. The main area of interest is to explore the similarities and differences between internal and external suppliers, with respect to their roles and the reasons for choosing a certain type of supplier. We base our analysis on data from 104 Swedish manufacturing plants and their corresponding manufacturing networks of internal and external suppliers. The results of the study show that there are significant differences between the criteria that are influential in choosing a certain type of supplier. The choice of an internal supplier is largely based on a single corporate decision, while an external supplier has to perform well on a number of criteria (primarily quality, cost, and delivery dependability). When comparing the selection criteria with competitive priorities and plant performance, we find that the criteria for selecting external suppliers has a better match than those for selecting internal suppliers. The sample contained plants having only external suppliers as well as plants having both internal and external suppliers, but the selection criteria for external suppliers are the same for both groups and not dependent upon the presence or absence of internal suppliers.     

Comparative study on the relationship between just-in-time production practices and operational performance in manufacturing plants

This study analyzes the differences in approaching JIT production across countries in order to identify alternative paths to high manufacturing performance. We applied ANOVA and regression techniques to the database of High Performance Manufacturing Project to examine the similarities and differences across countries in JIT implementation and the effect of JIT production practices on operational performance. The results indicated that JIT production practices were implemented in different ways across the countries. We found that the relationship between JIT production practices and plant performance is contingent on the national context and infrastructure practices in quality and workforce management. JIT delivery by suppliers, JIT layout, and setup time reduction were found to be the most effective approaches to improve cost, delivery, and flexibility. This study highlights the important role of shop-floor communication and information sharing, which should be focused for maximizing the benefits of JIT implementation.     

Integrating strategic cost management with a 3DCE environment: Strategies,practices, and benefits

The overall objective of this exploratory research was to examine the possible competitive advantages when organizations integrate strategic cost management into the simultaneous design of products, processes, and supply chains. The concept of concomitantly designing products, processes and supply chains is referred to by Fine [1998. Clockspeed. Perseus Books, Reading, MA] as three-dimensional concurrent engineering (3DCE). While many organizations have adopted concurrent engineering to design new products, few have simultaneously considered cost issues related to designing the supply chain. Fewer still were found to integrate strategic cost management with 3DCE. Thus a case study approach was deemed necessary. Based on case studies of five firms, a framework of testable propositions was developed. The initial findings indicated there is a positive relationship between the customer's and supplier's extent of participation in new product development, supplier development practices, and the integration of strategic cost management practices with 3DCE. The integration of strategic cost management with 3DCE should result in a higher level of operational performance in terms of product performance, supply chain responsiveness, and conformance to quality. Integration should also result in lower product and process costs, faster time to market, and fewer product launch problems. The overall result is a higher level of company performance and competitiveness.     

Buying into buying groups: is it good for the family firm?

The study considers three questions: (1) Are family businesses inherently disadvantaged? (2) Do buying groups enhance their members’ performance? (3) Do buying groups enhance the performance of family businesses in particular? Over 300 small retail hardware stores were surveyed, the majority of which were both family firms and buying group members. Results show no clear advantage to joining a buying group. Surprisingly, we find higher profit margins for businesses not part of buying groups as opposed to those who are members. Overall, the results tend to suggest that family firms realize no significant benefit through buying group membership.     

基于物流的供应商管理

企业物资采购不是单纯地指购买行为，而是包括采购各环节在内的一种管理行为，选择最有价值的供应商尤为重要。本文就供应商的审慎选择、风险防范及如何有效激励进行了论述。     

Electronic data interchange in hospital materiel management

The survey findings reported here support the continued trend toward increasing application of computer linkages in hospital operations. A majority of the hospitals surveyed already had some sort of computer linkages with their suppliers, possibly an EOE system. There were strong indications of expanding computer linkages to other health care institutions, financial institutions, business partners (i.e., insurance companies), purchasing groups, supporting agencies (i.e., libraries, research laboratories, and counseling agencies), electronic mail, and patient billing. Private hospitals, especially nonprofit hospitals, were more aggressive in the implementation of computer linkages. The initial costs of electronic linkage systems seemed to be affordable, or well justified, as indicated by the relatively large number of medium-size hospitals already linked electronically to other institutions. Top management attention was positively related to the implementation of computer linkages to suppliers but played a lesser role in establishing other types of linkages. The overall optimism concerning future expansion of computer linkages suggests an increasingly important role for electronic linkages in materiel management.     

提高供应商零部件产品质量的管理模式

文章从如何开展供应商产品先期质量策划和批量生产后如何确保供应商持续稳定地提供合格零部件2方面,阐述了上汽通用五菱汽车股份有限公司提高供应商零部件产品质量的管理模式。     

A replication and extension of quality management into the supply chain

As competition moves beyond a single firm into the supply chain, researchers are beginning to explore quality management (QM) in a supply chain context. The literature suggests that supply chain management (SCM) consists of internal practices, which are contained within a firm, and external practices, which cross organizational boundaries integrating a firm with its customers and suppliers. Supplier quality management and customer focus are two QM practices that are also clearly in the domain of SCM. In this study we investigate how these two supply chain management-related quality practices lead to improved performance and examine the practices that precede and mediate those relationships. In doing so, we replicate and extend the relationships among the QM practices and their effects on firm performance suggested in Kaynak [Kaynak, H., 2003. The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management 21, 405–435] using survey data gathered from firms operating in the U.S. The inclusion of customer focus and supplier quality management in the QM model supports the importance of internal and external integration for quality performance. Implications of the results for researchers and practitioners are discussed, and further research implications are suggested.     

Supplier Development Practices for Sustainability: A Multi‐Stakeholder Perspective

Supplier development for sustainability is a critical element of sustainable supply chain management and requires extensive multi‐stakeholder collaboration. This article establishes a conceptual four‐stage framework to analyse the collaborative mechanisms of supplier development practices, and presents an exploratory, qualitative analysis to identify the major contributors of sustainable supplier development practices, such as NGOs, industrial associations, consulting firms etc. Based on semi‐structured interviews about 63 organizations from different regions and industries, this article identifies three types of contributor: drivers, facilitators and inspectors. Instead of traditional stakeholder engagement processes, these contributors actively collaborate with buying firms and suppliers to design, implement and evaluate sustainable supplier development programs. The article then provides a matrix to describe the supply chain coverage and supplier performance of supplier development practices, given the absence or positive involvement of facilitators and inspectors. We conclude our study by suggesting future research directions as well as discussing managerial implications. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Affecting the value chain through supplier kaizen.

In the aerospace industry, typically 60 percent of a product's cost and 70 percent of the lead time are due to purchased material. To affect price and customer responsiveness, improvement initiatives must be extended into the supply chain. Many companies have developed supply base management systems that include long-term agreements with suppliers, partnering with suppliers in risk taking and product design, information sharing, and quality and delivery rating systems. The premise is that suppliers are an extension of the factory. But to take full advantage of customer-supplier relationships, the suppliers must be "developed" in the same manner as a manufacturing unit. Supplier kaizen is a method of bringing suppliers to the same level of operations as the parent company, through training and improvement projects, to ensure superior performance and nurture the trust that is required for strong partnerships. This article describes Sikorsky Aircraft's use of kaizen to improve its supply base management.     

Greening supply chains: the case of The Body Shop International

The management of the supply chain is an important element in attempts by business to lower its environmental impact. The Body Shop International (BSI) has acquired significant experience in this area, starting with the launch of its supplier environmental star‐rating scheme in 1992. This paper reports on an interview survey of 20 BSI suppliers regarding the potential for improving the environmental performance of the BSI supply chain. BSI was generally seen as a company with a clear and consistent commitment to the environmental cause and good relationships with its suppliers, both of which are critical facilitators of the process of greening their supply chain. However, some barriers were perceived by the suppliers, including the confidentiality of ideas for improvement that might offer commercial advantage, a perception that increased costs could result and the fact that very few customers other than BSI were really interested in ‘green’ products. The paper concludes with a review of the prospects for BSI working with its suppliers to improve their overall environmental impact. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Practices and strategies for sustainability-related risk management in multi-tier supply chains

This study investigates how sustainability-related risks are managed in multi-tier supply chains. It focuses on the strategies and practices that companies use to manage sustainability-related risks and how these differ between supply chains and supply chain tiers. We use a multiple-case study with 25 companies forming 5 multi-tier supply chains. As a result of this study, we present a conceptual framework for sustainability-related risk management practices in multi-tier supply chains and apply it empirically by defining sustainability-related risk management profiles for the case supply chains. We show that in multi-tier supply chains, companies need direct and indirect collaboration and direct and indirect monitoring practices for managing sustainability-related risks emanating from not only their first-tier suppliers but also lower-tier suppliers. Our framework helps purchasing and supply chain managers understand the dimensions of sustainability-related risk management in a multi-tier setting and develop strategies and practices for mitigating and managing those risks. We also empirically show the challenge of extending sustainability-related risk management practices beyond first-tier suppliers due to the different practices in different supply chain tiers.     

An empirical test of contributing factors to different forms of maverick buying

Maverick buying is the non-compliant, off-contract buying of goods and services, for which an established procurement process is in place based on pre-negotiated contracts with selected suppliers. The phenomenon is common in organizations using organization-wide frame agreements. Maverick buying prevents the full utilization of volume discounts negotiated, and also raises unnecessary process costs. This paper focuses on three types of maverick buying drawn from previous literature. Survey data on Finnish governmental procurement is used to test whether characteristics of users and their work contexts, drawn from literature in organizational behavior, affect the reasons for engaging in maverick buying. The results provide guidance on how different types of maverick buying in an organization can be reduced. Specifically, it is shown that all types of maverick buying can be reduced by limiting the task autonomy of the buyers. Additionally, different types of training can help prevent the behavior. Investing in reward and sanction systems, however, does not appear to be helpful in reducing the three types of maverick buying tested for in this study.