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The problem that original design manufacturing (ODM) companies encounter with the request for quotation (RFQ) process is that there is no effective and efficient methodology for them to formulate accurate and profitable RFQs. The purpose of this paper is to present a quality function deployment (QFD)‐, concurrent engineering (CE)‐, and target costing‐based methodology for ODM companies to formulate accurate and profitable RFQs.

From eight Taiwan electronics ODM companies, 15 people are interviewed to understand their current methods for formulating RFQs and the problems of these methods. Based on the interview results, it was decided to make use of the merits of QFD, CE, and target costing by integrating them into the proposed methodology.

A case study is presented to illustrate a successful application of the proposed methodology in a case company. The case study shows integrating QFD, CE, and target costing into the proposed methodology allows the authors to effectively and efficiently formulate an accurate and profitable RFQ for the case company.

The interview sample quantity of this study is limited to eight Taiwan electronics companies, which is insufficient to represent all ODM companies in various industries. For the future research, it is suggested researchers collect more samples from different industries in order to verify the effectiveness of the proposed methodology in ODM companies from different industries.

This paper aims to integrate QFD, CE, and target costing to come up with a systematic ten‐step approach that can accurately formulate the three parts of an RFQ: the product specifications proposal, the product price quotation, and the product development schedule. By adopting this methodology, ODM companies can provide accurate and profitable RFQs to ODM customers, thus increasing their chances of obtaining ODM business.

The calculation of quotations has been proven to be an extremely challenging matter in customized manufacturing requirements. There are significant wastages, which are attributed to activities related to the quotation preparation process (QPP) and their influence on an offer of delivery time to a customer. Hence, the purpose of this paper is to develop a tailor-made value stream mapping (VSM) approach, combined with a set of performance indicators for QPP performance measurement and management, to decrease the lead time of QPP.

Current and future state value stream maps have been developed to measure the performance of QPP. To minimize the weaknesses of the cycle efficiency indicator, additional indicators, assessing improvements to value- and non-value-added activities, external interested parties’ influence on lead time, etc., have been developed for QPP performance management. To illustrate the usefulness of the proposed indicators, a case study has been performed.

Only when all appropriate indicators are calculated than we have the whole overview of the current and future state in a QPP.

The proposed indicators were used only in one case study. If they are used in different case studies from different companies and operating in different industries, it will be possible to discover whether the presented indicators are enough to fully understand the analyzed process.

The proposed methodology is ready to be used in industry practice.

The presented VSM methodology, combined with a set of performance indicators for QPP, provides the originality of the work.

Building on the expectancy value theory, the purpose of this paper is to examine the effects of word-of-mouth (WOM) and customer value (i.e. functional value and ease-of-doing-business value) on B2B business performance in the B2B sales process.

The authors develop a framework to understand how B2B WOM and customer value influence supplier sales performance. This model was tested using structural equation modeling with a sample of 220 suppliers on Alibaba.com.

The empirical findings demonstrate that B2B WOM valence and volume have positive influences on the number of quotations and the number of transactions, respectively. Additionally, B2B WOM volume mediates the relationship between operational performance and the number of transactions. Response rate mediates the relationships between response time and both the number of quotations and the number of transactions, respectively.

This study contributes to the industrial marketing of B2B sales on the digital platform by investigating two influencers on sales performance: WOM and customer value.

This paper aims to measure the cost of procurement because public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers.

These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation.

This paper shows how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation.

The authors formulate the policy implications of this paper, as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.

A request for proposals (RFP) may be required by purchasing laws and regulations of a local jurisdiction. A library may choose to use the RFP to determine the capabilities and limitations of a number of possible systems. However, the RFP can be badly conceived, constructed, and applied, resulting in few responses by vendors and disappointment, lost time, and wasted resources for the library. Advice is presented on when to use the RFP, how to construct it, and how to use it to achieve maximum success: selection and implementation of the product that best meets a library's specific needs.

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).

This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.

Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.

The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.

The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.

The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.

Research on the dynamics of Collaborative Enterprises Networks (CEN) lacks consistency and industrial feedback. The purpose of this paper is to present insights and lessons learned from an industrial case study dealing with the practical experience gathered during the creation, alliance development, and business operation phases of a CEN.

The proposed research methodology relies on qualitative approach, using unstructured interviews with the main decision makers in the network. The objective of the interviews is to highlight the most important events in the lifecycle of the network. From the important elements discussed, success and failure key factors are identified.

Through the case study, the authors identify the main success and failure key factors to consider in CENs. Furthermore, relying on the current state of the art, they highlight the main research directions, particularly with respect to the development of modelling approaches capturing the dynamics of these systems.

The identification of the success and failure key factors and their corresponding technologies, systems and human perspectives is aimed at providing links between theoretical models and practical implications to both academics and industrialists. The challenges and developmental areas proposed provide the basis for new models capturing the dynamics and the evolution of CENs.

This is No. 21 of Supplements to Computers in Libraries and reprints papers on online library catalogues presented to the March 1989 Computers in Libraries Conference held in Oakland, California. There are apparently three US procurement documents, Request for Proposals (RFP), Request for Information (RFI) and Request for Quotation (RFQ) which have to be completed when buying new, large‐scale equipment from suppliers and these documents dominate the process of choice and purchase. Several of the papers in this collection deal with completing these forms when acquiring or changing systems, and would have little interest in the UK. The other papers offer more general advice on coping with the problems which arise when manual processes are replaced by high‐tech systems. Such problems are exaggerated in cases where patrons expect more of the system than it can actually deliver. However, what is being described is essentially American practice and library users in the US have a subtly different attitude from that found on this side of the Atlantic. The value of the text to UK librarians would therefore be limited to the opportunity for making comparisons with their own systems.

This simple case study tells the story of three young men who started an online business-to-business trading portal for fun, and to help fund them through university. They seized the opportunity of a major assignment to ask a new lecturer, the narrator, to guide them into profitability. Reluctantly, the young men were coerced into a literature survey, which proved surprisingly helpful to them. A simple research project followed, using mixed methods (survey, expert opinion, key account interviews). Based on the survey results and some simple frameworks from the literature, the young men not only completed their exercise, but also went on to turn their hobby into a sustainable business. The business still exists today, based on the simple study conducted some 12 years ago.

The learning outcomes are as follows: to understand the process of procurement and describe the process of supplier selection; to understand the importance of vendor selection criteria and develop the same; and to develop the framework for steps involved in vendor selection.

Jelani was working in his office over weekends to select the supplier and finalize the contract for installation of SMD LED screen. It was going to be one of its kind in town, and the first ever project for the organization. He was working as procurement manager at Universal Ad Agency and based in their office at Hyderabad. Jelani had already missed the deadline of installation, and he knew that he was not going to get any extension in deadline for the second time. He had visited the markets of Lahore and Hyderabad to source out the best supplier. He had to prepare a strong case and present to CEO. With all the data available, would Jelani be able to select the best evaluated supplier from among the recently sourced out suppliers?

MBA elective courses of Purchase & Supply Management, and Operations Management.

CSS 9: Operations and Logistics

Teaching Notes are available for educators only.