•A framework is proposed to link supplier development to supplier segmentation.•Suppliers are evaluated and segmented based on their capabilities and willingness.•Supplier development strategies are ...proposed for suppliers in the different segments.•The proposed approach is applied to a medium-sized high-tech company.•The results show the inefficiency of ‘one size fits all’ development strategies.
The strategic supplier-related activity of supplier segmentation focuses on the evaluation of suppliers, identifying different approaches, identifying the most suitable criteria and proper methods to segment the suppliers. The main aim of the evaluation of suppliers is to form different groups from the selected suppliers to create different supplier management strategies for segments involved. Supplier development is another strategic supplier-related activity designed to upgrade the performance level of suppliers in order to create and maintain a network of competent suppliers, which has a major influence on the competitive advantages of a buying company. To allocate scarce resources more efficiently, we should design different supplier development strategies for different supplier segments. This is where we actually use the evaluation for suppliers. This paper proposes an integrative approach that includes capabilities and willingness as two dimensions for evaluating and subsequently segmenting suppliers. The results of that segmentation are then used as the main basis for supplier development. The integrative approach proposed in this paper is of significant importance, as it helps companies apportion their managerial resources more efficiently. We use a new multi-criteria decision-making method called Best Worst Method (BWM) to segment suppliers. A supplier development conceptual model is proposed to develop the suppliers in the different segments. The proposed framework is further applied to a medium-sized high-tech company as input to validate the model.
•A group decision making sustainable supplier selection approach using extended TOPSIS based on IVPFSs is proposed.•The IVPFSs are used to capture decision maker's uncertainty information.•An ...extended TOPSIS method integrating distance and similarity based on IVPFSs is proposed to evaluate suppliers.
Due to the increasing awareness of environmental and social issues, sustainable supplier selection becomes an important problem. The aim of this paper is to develop a novel group decision making sustainable supplier selection approach using extended Techniques for Order Preferences by Similarity to Ideal Solution (TOPSIS) under interval-valued Pythagorean fuzzy environment. Sustainable supplier selection often involves uncertain information due to the subjective nature of human judgments, and the interval-valued Pythagorean fuzzy set (IVPFS) has great ability to address strong fuzziness, ambiguity and inexactness during the decision-making process. The first contribution of this research is to use the IVPFS to capture the uncertain information of decision makers. Moreover, sustainable supplier selection often involves multiple decision makers from different groups. The second contribution of this research is to develop a group decision making approach for sustainable supplier selection. TOPSIS is the most commonly used technique in sustainable supplier selection. The third contribution of this research is to propose an extended TOPSIS method by integrating distance and similarity between alternatives concurrently to evaluate performances of suppliers. In this research, the group decision making approach and extended TOPSIS method is also extended to IVPFSs. Finally, experiments are conducted to verify the feasibility and efficiency of the proposed sustainable supplier selection approach. Experiments results show that the proposed approach is effective and efficient to help decision makers to select optimal sustainable suppliers. Therefore, the proposed approach can be applied by managers to evaluate and determine appropriate suppliers in sustainable supplier selection process.
Firms are increasingly looking to eradicate social and environmental non‐compliances at their suppliers in response to increasing regulations, consumer demand, potential for supply chain disruptions, ...and to improve their social, environmental, and economic supply chain performance. This study develops a model of the relationship between the buyer's supplier incentives and penalties for the supplier's social and environmental compliance, and the outcomes in terms of reduction in supplier social and environmental violations as well as the buyer's own operating costs. This model is tested empirically through analysis of a dataset of opinion‐based survey responses from practitioners at 334 companies across 17 industries. The analysis finds specific penalties and incentives that are positively associated with reduced supplier violations and reduced buyer operating costs. In particular, offering suppliers incentives of increased business and training for improving social and environmental performance is strongly associated with a reduction in both violations and operating costs.
Recent research highlights opportunities to study collaborations between established firms and startups from a buyer–supplier relationship perspective. However, before firms can leverage startups’ ...resources and capabilities in a buyer–supplier relationship, they need to identify, evaluate, and select suitable startups as their suppliers. As prior research has only studied how buying firms select established firms as suppliers, it is unclear which processes, tools, or organizational approach firms use when selecting startup firms as suppliers. These suppliers are markedly different in that they lack organizational routines, financial resources, and operational capabilities, posing a significant risk for buying companies. This inductive, qualitative case study research collects data from 20 established buying firms and investigates how they select startups as suppliers. We first identify five design themes distinguishing buying firms’ selection strategies. Based on these themes, we develop a typology of three supplier selection archetypes. The results suggest that firms that are willing and able to adapt their selection approach to startups are expected to show a higher selection performance, meaning that they are more likely to select suitable startups as suppliers. The results extend the supplier selection literature and provide new insights into the emerging field of new venture suppliers.
The purpose of this research is to present an adaptive and integrated reference model for the Supplier Selection Process (SSP) to integrate it into the Product Development Process (PDP) or the ...serialized component supply. The research methodology adopted a broad literature review on indexed databases and a logical deductive analysis of the identified constructs and factors. The two main results obtained were: compilation and categorization (moderating factors, connecting factors) of critical SSP success factors; and proposal of a reference model so that the SSP can serve the PDP and the serialized component supply. Regarding originality we can mention: (a) this reference model covers all the critical SSP success factors; (b) it makes a clear distinction between moderating and connecting factors (c) while addressing both the PDP and the serialized component supply. The considerable number of factors identified in this research suggests that the vast majority of models proposed in the literature are based on an incomplete set of variables, restricting the conceptual view of the SSP. Finally, the results contribute to reducing the risk of the SSP not adding value to the Original Equipment Manufacturers' (OEMs) strategic purpose or causing losses. Additionally, the proposed model can be adapted according to the company's business strategy.
Supply chain management theory recognizes the importance of managing supplier relationships. However, we know less about the capabilities underlying such supplier relationship management that are ...required to restructure and develop the supply base in order to continuously improve its performance. A recent study by Mitrega and Pfajfar (2015) provides initial insights regarding this topic. The objective of the present article is to provide a qualification and extension based on their argument. For this purpose we utilize the concept of supplier relationship management (SRM) capability, in line with a dynamic capabilities approach to management. SRM capability comprises organizational processes and routines oriented at the initiation, development, and ending of supplier relationships. Our study qualifies and extends Mitrega and Pfajfar (2015) by providing a rigorous conceptualization, nomological model, and operationalization of SRM capability. This study specifically shows that differential effects of components of SRM capability exist, which are attributed to the characteristics of the business environment in combination with the firm's strategic choices. A latent class analysis reveals the existence of two groups of distinct SRM capability strategies: a status-quo optimization strategy and a dynamic optimization strategy, which are contingent on characteristics of the supply base and the business environment.
Managing quality of suppliers is of prime importance in supply chains to minimise costs arising due to poor-quality products and services. Supplier quality development (SQD) is a strategic quality ...development activity for increasing quality, reliability and efficiency of suppliers. This paper reports results of review on the academic literature and industrial practices on SQD in order to find main concepts, steps, prevalent methodologies, tools and techniques, and best practices. We reviewed 177 papers from years 1980-2013 including 22 company manuals for conducting this study. The proposed review assists readers in developing a better understanding of SQD, involved processes and their key elements, tools and techniques used, challenges in supplier quality management, best practices from academics and industry, and open research problems in SQD that require detailed investigation.
The aim of this paper is to develop a new approach to supplier segmentation that considers the various variables used in existing literature to segment suppliers. A literature review reveals a ...serious problem from a management perspective. The problem is that many different supplier segmentation methods have been proposed in the last three decades, each of which uses different segmentation variables and hence results in different segments. An overarching supplier segmentation method, considering various segmentation variables, is lacking. Based on an extensive literature review, we have analysed the current methods and we conclude that the literature on supplier segmentation can be divided into three different schools of thoughts. By clearly identifying the deficiencies of the existing theory on supplier segmentation, we developed a new approach. As the basis for this new approach, we developed three requirements to make an overarching approach to supplier segmentation. Firstly, supplier segmentation should be based on their long-term potential, which we propose to assess in terms of supplier capabilities and willingness to cooperate. Secondly, other functional areas beyond purchasing have to be considered when segmenting suppliers. Thirdly, supplier segmentation should be viewed as a step in a longitudinal process that includes selecting suppliers, segmenting them, managing the relationship with them and actively developing their role over time. We illustrate the proposed approach by segmenting the suppliers of a company in the food industry.
•Investigates the impact of buyer innovation on supplier innovation.•Uses a quantitative empirical design with information on direct linkages between suppliers and buyers.•Documents a positive effect ...of buyer innovation on supplier innovation.•Finds that knowledge spillovers are positively moderated by the duration of the buyer–supplier relationship.•Finds no evidence that knowledge spillovers increase with technological proximity.
In addition to internal R&D, external knowledge is widely considered as an essential lever for innovative performance. This paper analyzes knowledge spillovers in supply chain networks. Specifically, we investigate how supplier innovation is impacted by buyer innovation. Financial accounting data is combined with supply chain relationship data and patent data for U.S. firms in high tech industries. Our econometric analysis shows that buyer innovation has a positive and significant impact on supplier innovation. We find that the duration of the buyer–supplier relationship positively moderates this effect, but that the technological proximity between the two firms does not have a significant effect on spillovers.
Suppliers can be considered as inevitable sources of external risks in modern supply chains. In this context, resilience that stands for the adaptive capability to respond to disruptions and ...recovering from it needs to be considered in supplier selection. But selection of suppliers is a challenging issue that involves the evaluation of both qualitative and quantitative attributes, in usual have imprecise and limited information. Grey relational analysis based on linguistic assessment of supplier rating and attribute weightings could judiciously be used under these situations to obtain a set of possibility values for prioritizing supplier selection. In this research, a supplier to be selected in the context of a resilient supply chain is termed as a resilient supplier. Taking electronic supply chain as a case study, with six alternative suppliers, grey possibility values for supplier selection were calculated and the suppliers were prioritized. Sensitivity analysis was also conducted to identify how far the selection priorities of suppliers change by varying the weightings given to each of the resilience attributes. This helps us in identifying the attributes of resilience where a particular supplier performs well. A comparison of proposed grey methodology with analytic hierarchy process (AHP) and analytic network process (ANP) was also conducted to comprehend extent of out-performance. The results of the proposed research could help top management in taking strategic level decision making with respect to selection of suppliers in a resilient supply chain.
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