Low cost country sourcing and its effects on the total cost of ownership structure for a medical devices manufacturer

In this paper, we describe a total cost of ownership (TCO) method as an activity-based costing (ABC) application along the value chain to measure and analyse the costs of international sourcing activities. We further describe the method's implementation for a manufacturer of high-tech medical devices. For this case study, we analyse the effects of shifting purchasing volume from traditional procurement market suppliers to low cost country suppliers on the cost structure of purchasing projects. We find that particularly costs at component and supplier level gain importance over traditionally dominating unit level costs. Furthermore, we identify low cost country sourcing as a decision with extensive impact on value chain entities other than purchasing. Finally, a considerable part of costs in low cost country sourcing accrue at the beginning of a purchasing project due to problems stemming from unsatisfactory initial quality, language barriers and intercultural communication.     

基于风险感知的采购行为决策模型

从风险感知的角度,构建了采购决策的动态模型。首先,采购组织确定采购目标,而采购组织中的成员在环境、个体、组织、供应商、原材料等多种因素的影响下形成个体风险感知;其次,通过与采购组中的其他成员的信息交流,个体将修正自身的风险感知,并且个体通过其风险感知与风险承受能力比较得出个体采购决策,而个体采购决策综合加权最终形成群体决策。最后,群体决策绩效将在下一期中修正个体的认知偏差,从而进一步影响其采购决策。     

The impact of stakeholder orientation on sustainability and cost prevalence in supplier selection decisions

The stakeholder approach has taken a prominent role in the discussion of sustainability measures at varying strategic levels and corporate functions. Literature on sustainability suggests that firms have to cope with enhanced pressure from different stakeholder groups regarding their upstream supply management practices. At the same time purchasing managers face the trade-off between sustainability and cost prevalence in selecting new suppliers. Thus, it is of major concern for companies in general and purchasing organizations in particular to know and understand how purchasing managers react to the influence of specific stakeholder groups when it comes to supplier selection decisions. Following this notion we formulate six sets of hypotheses linking the adoption of ethical business culture to the prevalence of sustainability and cost criteria in supplier selection decisions to be tested in a path analytical model.Based on the results of an empirical study conducted with purchasing managers from multi-national firms located in Germany, this paper makes two major contributions: first, it sheds light on direct effects of shareholder, public, and customer orientation on the evaluation of the outlined-trade off; second, it investigates the indirect effects by introducing the formalization of ethical culture as a mediating variable to assess the impact of the three kinds of shareholder orientation on the propensity to select suppliers based on their performance in terms of social and environmental criteria as well as cost performance.     

Application of an integrated decision support process for supplier selection

In many firms the value of purchased materials and components accounts for 50–80% of total cost of goods sold. For those firms, purchasing decisions cause enterprise wide side effects, and, therefore, should be treated as an integration matter. Supplier selection is a problem that deals with both qualitative and quantitative issues that must be measured using information that is normally spread within the enterprise. To see how this problem was addressed in a small construction company in Brazil, an integrated procurement process, which is a simplification of a more complex methodology, is presented. The case study shows the importance of simpler, yet efficient, solutions to address the decision making problems of smaller enterprises in development countries—a research and commercial niche not well developed yet.     

我国企业战略采购的问题及实施策略研究

文中首先阐述了战略采购定义和内涵、战略采购对企业战略实施的价值,然后通过分析我国企业战略采购存在问题,提出了实施企业战略采购的对策建议。战略采购对企业采购具有重要的意义,要做好战略采购,建议从采购计划、供应商的选择和管理、采购组织和业务流程重组、战略采购目标管理体系构建等方面着手实施。     

A multi-objective model for lot-sizing with supplier selection for an assembly system

Lot-sizing with supplier selection (LS-SS) is a fast-growing offspring of two major problem parents in logistics and supply chain management (‘lot-sizing’ and ‘supplier selection’). The model proposed in this paper is an attempt to extend it to an assembly system, by formulating a multi-objective model for an integrative problem of LS-SS for assembly items. The total costs of the system, consisting of purchasing, ordering, transportation, assembly, and holding, is considered the first objective function, while the total reliability of the finished products is considered the second objective function. The decision-maker aims to minimise the total costs while maximising the total reliability. Several constraints of the system (e.g. storage capacity, supplier production capacity) are taken into account. Given the complexity of the model, a heuristic evolutionary algorithm is proposed to solve the model. The results indicate which assembly items to order in which quantities, from which suppliers and in which time periods.     

Global supplier selection using fuzzy analytic hierarchy process and fuzzy goal programming

Global supplier selection is a multi-goal multi-criteria problem which needs to consider both qualitative and quantitative factors. Which suppliers are the best and how much should be purchased from the selected suppliers is an important purchasing issue for manufacturers. Traditionally, decision makers can determine the best supplier from evaluating few suppliers with qualitative supplier selection criteria by using fuzzy analytic hierarchy process (FAHP), but evaluate dozens of global suppliers simultaneously or determine the order quantity from them will be complex and difficult. Meanwhile, decision makers can determine the order quantity form the suitable suppliers by using fuzzy goal programming (FGP); however, it is not easy to decide weights for each goal of global supplier selection with different supply chain strategies. This study integrated the FAHP and FGP (FAHP-FGP) method to be a new approach for global supplier selection in considering the manufacturer’s supply chain strategies. With FAHP-FGP method, the manufacturer can consistently integrate multi-manager’ opinions in determining weights of each goal and obtain the order quantities for suitable suppliers based on manufacturer’s strategies. To demonstrate the usefulness of the proposed method, a real-world case of a digital consumer products manufacturer is presented.     

电力企业规范化物资采购方法的研究

为了保证电力企业物资采购工作的有序开展,并使该项工作能够在合理、规范、高效的轨迹上运行,文章对电力企业进行规范化物资采购方法进行了研究,从采购计划的合理、规范性,采购方式的选择、采购人员的培养及采购的监督和决策等方面进行了论述,为电力企业物资采购提供了一套规范的工作方法。通过使用该方法,在有效的规避采购风险的同时,提升了采购效率,降低了采购成本,为企业的降本增效做出了贡献。     

Supplier selection using a multi-criteria decision aid method

An ever-increasing trend in today's industrial firms is to exploit outsourcing for those products and activities deemed to be outside the company's core business. Given the financial importance and the multi-objective nature of supplier selection decision, in this paper an effort is made to highlight those aspects that are crucial to process qualitative and quantitative performance measures. In this paper, the contribution of a multi-criteria decision aid method ( ) to such problems is investigated, together with how to allow for a simultaneous change of the weights (importance of performance criteria), generating results that can be easily analysed statistically, performing an innovative sensitivity analysis. By way of example, the model is applied to a mid-sized Italian firm operating in the field of public road and rail transportation. The whole suppliers selection model presented ( techniques plus high-dimensional sensitivity analysis) seems to be a useful additional tool inside the final choice phase of a supplier selection process. Finally, potential issues for future research are presented.     

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.     

Exploring the circular economy paradigm: A natural resource-based view on supplier selection criteria

The paradigm of circular economy and the transfer of its principles to supply chain management has recently received much attention from researchers and practitioners. Limited natural resources, governmental legislation, and social responsibility for environmental preservation are the main factors for the development of circular supply chains. Especially in the automotive industry, critical materials are used to produce electric vehicles, reinforcing the importance of circularity for the industry. As the first stage of the supply chain, suppliers have a considerable influence on creating self-sufficient production systems, and in the automotive sector, a low level of vertical integration is important. Therefore, selecting suppliers is an enabler for circular supply chains, but this decision is a complex process due to multiple, partly conflicting criteria. To contribute to the knowledge in this research area, this study applies a fuzzy decision-making trial and evaluation laboratory approach for supplier selection in a circular supply chain in a case study of electric vehicles. First, a set of criteria for supplier selection in circular supply chains was identified based on a literature review and was systematically categorized based on the natural resource-based view. Afterward, the criteria were assessed and refined by experts with a strong procurement background in the automotive industry. Second, the experts were interviewed for value collection, and finally, the mutual influence of the criteria was determined. The results show that the most important criteria for circular supplier selection in electric vehicle supply chains are environmental standards, environmental-related certifications, resource consumption, and waste generation. Regarding the natural resource-based view, short-term focused criteria addressing the capability of pollution prevention have a higher importance compared to long-term criteria that drive sustainable development. In addition, this study classifies the criteria into the categories of causes and effects, discusses the prominence of the criteria, and presents a strategic map showing the mutual influences of the criteria. The results contribute to the theoretical and practical discussion on circular supply chains by identifying the key criteria for circular supplier selection and providing decision-making support for procurement managers.     

Sustainable Purchasing in Food Retailing: Interorganizational Relationship Management to Green Product Supply

Stakeholders’ demands for product sustainability redefine the focus of corporate purchasing strategies from the traditional concern with financial performance to considerations of ‘triple bottom line’ viability. This adds to the complexity of managing interorganizational relationships and poses a question regarding corporate ability to effectively leverage suppliers over environmental and social performance of supplied goods. Since it is not clear what type of purchasing relationship is more favorable for greening a product supply, the current paper aims to investigate how food retailers manage their relationships with suppliers in order to influence the environmental and social performance of procured goods and improve the availability of sustainably produced supply. The research is based on two case studies of Swedish supermarkets and supplementary semi‐structured interviews with Swedish, British and Danish supermarkets. The results of the study contribute to the existing body of academic knowledge in the field of sustainable supply chain management by developing a typology of sustainable purchasing relationships with detailed insights into the nature of collaborative practices, structure of incentives, sustainability ambition, and approaches to verification of compliance. The study has also revealed the dependence of sustainable purchasing relationships on the characteristics of the procurement context, namely the presence of well‐established sustainability certification schemes, perceived by purchaser's situation with availability of sustainability certified supply and purchaser's interpretation of the state of power dependence in relationships with suppliers. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

石油物资集中采购模式的分析

实行石油物资的集中采购，能有效降低采购成本,提高油田经济效益，对油田企业至关重要。近年来，我国三大石油公司大力推行集中采购，取得十分明显的经济效果。由于物资种类多,采购规模大，因而相应的供应商数量也非常多。而油田多以传统采购模式为主，采购部门重复，采购效率低下。采购成本增加。在此分析集中采购在石油物资采购中的优势，以期达到降低采购成本，增加油田效率的目的。     

An interrelation model of power and purchasing strategies: A study of vaccine purchase for developing countries

The purpose of this study is to further understand the relationship between purchasing strategies practiced by less-powerful buyers and their purchasing power. Drawn on the resource dependency theory, a two-way relationship was predicted where power is both a cause and an effect. The theoretical predictions were then explored in a multiple-case study in the context of vaccine procurement for developing countries. This context presents an asymmetric power situation, favoring suppliers, and changes some of the basic assumptions of theories used; i.e. nonprofit, public procurement, and end customer satisfaction. Cases were selected to represent different strategies towards similar power constraints. The results of the study indicated that purchasing strategies were set in response to individual constraints from sources of purchasing power, and not in response to the power positions as the cumulative effect of all sources of power. In practice, some of these purchasing strategies changed the level of sources of power, and some contributed to a changed buyer power position. Based on the findings, it is recommended that less-powerful buyers, like that of vaccines, practice purchasing strategies with the orientation towards an attempt to change the environment, such as encouraging new supply market entries.     

白化函数与灰色关联度在供应商选择中的应用

随着传统采购向供应链采购的转变,企业选择适当的供应商作为合作伙伴至关重要。文章首先讨论了供应商分类,然后针对战略伙伴供应商选择,构建评价指标,引入白化函数和灰色关联度进行择优选择,结果表明,灰色关联度综合评价法能够识别出"整体优秀"的供应商。     

基于ANP的皖南电机公司供应商选择指标重要性研究

对于皖南电机公司来说，采购成本占产品成本的60％以上，与此同时随着公司的日益发展壮大，对供应商的要求越来越高，所以如何科学、合理的确定供应商选择指标的权重具有重要意义。在相关文献的基础上，文中引入了网络层次分析法，该方法弥补传统方法在确定权重方面的不足，充分反映各指标间的相互反馈与相互影响的关系。借助SuperDecision软件，论文给出了指标的局部权重和全局权重，研究结论可为皖南电机及其他相关制造企业合理地选择供应商、科学地管理供应商提供了借鉴与指导。     

钢铁企业三类含铁物料的协同采购研究

钢铁企业生产中,需要三种含铁物料精矿粉、富矿粉和块矿。以降低含铁物料采购成本为目标,建立了基于性能和价格的含铁物料采购模型。模型主要约束包括：铁量约束,各类含铁物料用量约束,高炉碱度约束,以及采购数量约束。数值模拟中要求含铁物料含铁量应该满足企业铁产量要求,各类含铁物料采购量控制在基准期钢铁企业实际采购量的5%以内,高炉碱度约束转化为基准期CaO,MgO,SiO2的数量约束。通过实际月度数据的模拟计算,能够为企业降低采购成本23.3万元,取得了明显经济效益。     

农产品供应链协调中的期权契约价值研究

通过分析供应链期权机制,建立了农产品供应链协调下的各决策主体的决策模型。基于此模型求得协调状况下供应商的最优价格、产能决策和零售商的最优购买决策。说明了农产品供应链中引入期权机制之后,供应链实现了收益共享、风险共担。     

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.