Search results
1 – 10 of 218Examines if online reverse auctions are consistent with the Caux Round Table Principles for Business. Identifies numerous contradictions that contribute to the perpetuation of…
Abstract
Examines if online reverse auctions are consistent with the Caux Round Table Principles for Business. Identifies numerous contradictions that contribute to the perpetuation of divisive business practices. Concludes that buyer behaviors must evolve from focusing on short‐term tactics designed to reduce purchase price and instead pursue collaborative cost reduction practices with key suppliers.
Details
Keywords
Md Delwar Hossain, Md Kamrul Hassan, Anthony Chun Yin Yuen, Yaping He, Swapan Saha and Waseem Hittini
The purpose of this study is to review and summarise the existing available literature on lightweight cladding systems to provide detailed information on fire behaviour…
Abstract
Purpose
The purpose of this study is to review and summarise the existing available literature on lightweight cladding systems to provide detailed information on fire behaviour (ignitibility, heat release rate and smoke toxicity) and various test method protocols. Additionally, the paper discusses the challenges and provides updated knowledge and recommendation on selective-fire mechanisms such as rapid-fire spread, air cavity and fire re-entry behaviours due to dripping and melting of lightweight composite claddings.
Design/methodology/approach
A comprehensive literature review on fire behaviour, fire hazard and testing methods of lightweight composite claddings has been conducted in this research. In summarising all possible fire hazards, particular attention is given to the potential impact of toxicity of lightweight cladding fires. In addition, various criteria for fire performance evaluation of lightweight composite claddings are also highlighted. These evaluations are generally categorised as small-, intermediate- and large-scale test methods.
Findings
The major challenges of lightweight claddings are rapid fire spread, smoke production and toxicity and inconsistency in fire testing.
Originality/value
The review highlights the current challenges in cladding fire, smoke toxicity, testing system and regulation to provide some research recommendations to address the identified challenges.
Details
Keywords
The purpose of this paper is to quantitatively assess wood pallet suppliers' reaction to online reverse auctions and its impact on their business policies and practices.
Abstract
Purpose
The purpose of this paper is to quantitatively assess wood pallet suppliers' reaction to online reverse auctions and its impact on their business policies and practices.
Design/methodology/approach
Survey method was used to determine how pallet suppliers react to online reverse auctions.
Findings
Determines that pallet suppliers do not realize the benefits claimed by online reverse auction service providers. Identifies new sources of costs which accrue to buyers and are not accounted for in so‐called “total cost” request for quotes including: retaliatory pricing practices, less cooperative relationships, and sourcing work back to the original supplier. The qualitative benefits identified for suppliers by third‐party online reverse auction service providers are overstated or false.
Research limitations/implications
The present work can be extended to other commodity categories to identify similarities and differences in how suppliers react to online reverse auctions, understand the domain of successful and unsuccessful application of the online reverse auction tool, and provide further insight into the evolution of buyer‐seller relationships, including embedded organizational routines such as power‐based bargaining.
Practical implications
Findings mirror the results found in a previous study that examined aerospace parts suppliers' reaction to online reverse auctions, and indicates that market makers have consistently overstated the benefits of online reverse auctions to both sellers and buyers, and the use of this tool will typically result in unfavorable outcomes for both buyers and sellers.
Originality/value
This paper will be of interest to buyers, sellers, and market makers, as it identifies important problems with online reverse auctions, and suggests questions that buyers should ask market makers to ensure better sourcing decisions.
Details
Keywords
Discusses the savings that can result from online reverse auctions for the specific case of buyer‐designed machined parts. Distinguishes between gross and net savings, and…
Abstract
Discusses the savings that can result from online reverse auctions for the specific case of buyer‐designed machined parts. Distinguishes between gross and net savings, and highlights factors that can reduce the magnitude of anticipated savings. Determines that the savings actually achieved are less than that reported by suppliers of online auction services for the type of buyer‐designed production materials under consideration. Examines the root cause of why managers use online reverse auctions to reduce the price of purchased goods and services. Concludes that the root cause of online reverse auctions is local optimization of the business system along functional, managerial, or financial dimensions, which in turn perpetuates chronic underutilization of valuable internal and external resources.
Details
Keywords
Discusses the types of terms and conditions that typically accompany purchasing contracts resulting from online reverse auctions for industrial components. Identifies the terms…
Abstract
Discusses the types of terms and conditions that typically accompany purchasing contracts resulting from online reverse auctions for industrial components. Identifies the terms and conditions that perpetuate traditional batch‐and‐queue production practices. Concludes that buyers must construct terms and conditions that support the implementation of lean production by suppliers in order to achieve congruency with strategic business goals.
Details
Keywords
The purpose of the paper is to explore the benefits of online reverse auctions for both buyers and suppliers in contrast to the negative implications for procurement process. This…
Abstract
Purpose
The purpose of the paper is to explore the benefits of online reverse auctions for both buyers and suppliers in contrast to the negative implications for procurement process. This paper also aims to provide a framework for managers determining if participation in online reverse auctions is appropriate for their business.
Design/methodology/approach
Information was gathered from numerous sources including surveys from both buyers and suppliers in a multitude of industries in order to create a comprehensive analysis of benefits and shortcomings of online reverse auctions. Additional research could be pursued by conducting a detailed cost analysis of buyers who have adopted online reverse auctions. A thorough analysis of unit cost and total cost changes amongst various industries could provide benchmark data for companies contemplating entering the reverse auction arena.
Findings
The research analysis finds a strong temptation for buyers to participate in online reverse auctions: price reductions. However, buyers should approach online reverse auctions with caution as total cost savings can be misleading and participation may result in damaged relationships with suppliers. This can be seen in the results portrayed in the buyer and supplier industry survey which shows that buyers are more keen to participate in online reverse auctions in order to gain advantage of the lower prices and global potential of suppliers, whereas some buyers are keen on making a strong relationship with existing suppliers through direct contact.
Research limitations/implications
Buyers' determination to use online reverse auctions relies on product specifications, supplier relationships, the current supply and demand environment, indirect costs, and several other factors which will vary for each product and for each buyer. Therefore, an all‐encompassing decision model cannot be presented to accommodate each scenario. However it can be seen that the industrial survey to the buyers and the suppliers has been an effective tool in bridging the gap between the decision model and the factors that vary between each buyer.
Practical implications
This paper provides managers a framework for determining if online reverse auctions are appropriate for their business. In practice, additional company specific information can be applied to the decision making model.
Originality/value
This paper includes a comprehensive decision framework specifically for buyers as well as an abbreviated decision model for suppliers.
Presents the results of a survey conducted among aerospace part and sub‐assembly suppliers to quantitatively assess their reaction to online reverse auctions and its impact on…
Abstract
Presents the results of a survey conducted among aerospace part and sub‐assembly suppliers to quantitatively assess their reaction to online reverse auctions and its impact on their business policies and practices. Findings are compared to the qualitative benefits identified for suppliers by third party online reverse auction service providers. Determines that incumbent suppliers do not realize the benefits suggested by online reverse auction service providers. Identifies new sources of costs which accrue to buyers and are not accounted for in so‐called “total cost” request for quotes, including retaliatory pricing practices, less cooperative relationships, and sourcing work back to the original supplier. Concludes that both buyers and sellers participating in online reverse auctions will likely encounter unfavorable outcomes, thus questioning the effectiveness of this new purchasing tool as a means of reducing the unit price of buyer‐designed engineered components.
Details
Keywords
M.L. Emiliani, D.J. Stec and L.P. Grasso
To describe the tactics that buyers often use to avoid unfavorable purchase price variance (PPV) and identify alternate approaches that will improve purchasing performance and…
Abstract
Purpose
To describe the tactics that buyers often use to avoid unfavorable purchase price variance (PPV) and identify alternate approaches that will improve purchasing performance and also help achieve company objectives.
Design/methodology/approach
Descriptive: presents for the first time 12 dysfunctional tactics used by buyers of industrial goods use to avoid unfavorable PPV.
Findings
The tactics are shown to increase costs rather than decrease costs and lead to organizational dysfunction. Findings are broadly applicable to large corporations that use legacy software systems or newer enterprise requirement planning (ERP) software systems to track purchasing costs and transactions, and also have a strong management focus on price‐based purchasing performance.
Research limitations/implications
Findings are limited to organizations that measure the success of purchasing and supply management activities using price‐based metrics.
Practical implications
Should propel managers to identify alternative metrics or processes for managing purchasing performance, reduce system‐wide costs, and improve day‐to‐day work in purchasing organizations.
Originality/value
This paper will be helpful to academics researching operational or behavioral aspects of purchasing, practitioners managing supply chains, auditors assessing the integrity of material cost reporting and management controls, and persons concerned about ethics in business.
Details
Keywords
Torbjørn H. Netland, Daryl John Powell and Peter Hines
There is convincing evidence that companies need a special form of leadership to succeed with lean transformations. The general advice for lean leaders, however, is often obvious…
Abstract
Purpose
There is convincing evidence that companies need a special form of leadership to succeed with lean transformations. The general advice for lean leaders, however, is often obvious or unrealistic. The purpose of this paper is to propose and discuss specific lean leadership practices for top-managers, middle managers and front-line managers.
Design/methodology/approach
In this conceptual paper, the authors draw on their rich experience from researching, leading and consulting in lean transformations in a large number of firms.
Findings
Leaders must adapt lean leadership practices to their hierarchical levels. This paper provides a framework to understand and debate lean leadership at different levels of the organisational hierarchy.
Originality/value
This paper demystifies lean leadership by offering a discussion of specific lean leadership practices at different hierarchical levels. The paper offers a new perspective for researchers studying lean leadership behaviours and contains helpful advice for firms seeking lean transformations.
Details
Keywords
To examine why most Lean transformations achieve only modest favorable results, despite years of effort.
Abstract
Purpose
To examine why most Lean transformations achieve only modest favorable results, despite years of effort.
Design/methodology/approach
Comparative/evaluative discussion of efforts made by senior managers to implement the Lean management system, with commentary on a published example.
Findings
Presents common obstacles and identifies common implementation errors that must be avoided in order to realize the full benefits of the Lean management system.
Research limitations/implications
Illustrates the ease by which Lean transformation efforts can lead to less desirable outcomes when senior managers fail to fully grasp the implicit and explicit aspects of both task and behavioral elements of a new management system.
Practical implications
Provides specific suggestions that will enable senior managers and organizations to achieve improved outcomes.
Originality/value
Identifies numerous common errors made by senior managers, the rationale for why the errors have occurred, and suggests improvements for implementing the Lean management system.
Details