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Moral hazard and adverse selection often exist in asymmetric information environment. In this paper, quality investment decision problem is studied under moral hazard. A basic model for quality investment level decision is developed with the supplier as a principal and the buyer as an agent. And then we regard the supplier and the buyer’s rational limitations to set up a model when the buyer’s quality evaluation and processing activities are hidden. The model is optimized and the results under different backgrounds are discussed and compared. Results show that the buyer’s quality evaluation level and processing level are mostly influenced by the supplier’s quality assurance payment. Both the supplier and the buyer choose different quality investment levels under moral hazard because of the supplier’s payment to the buyer in case of internal failure and external failure.

Currently there is no universally accepted approach to supply chain risk management and assurance. To begin to shed more light on the practical operational challenges presented when considering supply chain risk mitigation through the sharing of information, this paper discusses the results of an empirical study conducted with manufacturing supply chain professionals. The study examines state-of-the-art challenges to managing risk in today's supply chains by reporting on data collected in 2021.

To develop a rich picture of the challenges of information sharing in multi-tier supply chains, the authors adopted a qualitative research design. The authors conducted 14 interviews with supply chain professionals and ran two focus groups that were industry specific: one focused on the nuclear industry and the other on automotive.

The study identifies contemporary practical challenges to information sharing in supply chains – specifically challenges related to data quality and the acceptance of sub-optimal normative supply chain practices, which have consequences for supplier assurance fatigue and supply chain transparency.

The topical and contemporary study shows how an acceptance of the normative practices of a supply chain can have a cumulative effect on the likelihood of supply chain disruption due to shortcomings in approaches to information sharing. The notion of the acceptance of the status quo in this context has received limited research attention, and hence offers an extension to current discourse on supply chain risk and resilience.

The European food sector has been hit by a number of serious consumer scares over the past decades. Often, the concerned companies have failed to give appropriate and immediate information to consumers. This article discusses the measures that one food company – Tesco – has taken. Its approach deals with setting up effective guidelines for managing its relationships with meat suppliers. These guidelines make it possible for Tesco to inform consumers appropriately and immediately about serious food scares and to address consumers’ concerns over animal welfare and environmental issues. The article also describes how the meat supplier‐Tesco relationships are being evaluated using the so‐called key performance indicator process. Specific initiatives include different animal, feeds and medicines policies, as well as meat assurance schemes; these policies and schemes have been implemented by both Tesco and the meat suppliers. The benefits of Tesco’s approach to its suppliers and consumers are considered and include the ability to deliver higher value products. The article suggests a number of avenues for future research.

The purpose of this paper is to discuss key elements of lean supply (LS) in light of core concepts in the Industrial Marketing and Purchasing Group (IMP) perspective.

First, the authors examine the literature on LS and identify and discuss important characteristics and key elements of LS. Second, the authors present key concepts in the IMP Perspective, in particular the dyad versus network levels, and the ARA model, capturing activities, resources, and actors. Third, the authors cross-fertilize the concepts from these two streams of research.

The authors identify 12 key LS elements. Relating these to core IMP frameworks, they identify areas of LS that can be expanded. First, the authors found that key elements in LS mainly focus on the dyadic level and that the network level is addressed to a much lesser extent and primarily captures serial “chain” connections among relationships. Second, it was found that key elements in LS predominantly focus on the activity layer and pay much less attention to resources and actors.

The authors suggest that LS theory and practice can benefit from taking a network perspective, and by paying more attention to resource and actor concepts and issues. The study is purely theoretical.

To the best of the authors’ knowledge, no previous studies combine LS and the IMP perspective. The authors add to LS by elaborating how 12 key elements in LS can be expanded.

This study explores the challenges of garment suppliers in delivering defect-free products to their buyers and how buyers play a role in overcoming the challenges.

Following a qualitative research approach and a multiple case study method, quantitative and qualitative data were collected from the four garment suppliers and buyer's representatives. Both quantitative and qualitative data analysis techniques were applied to understand the challenges in delivering defect-free products.

The study findings show that garment suppliers' main challenges in delivering defect-free products are unsystematic quality control, informal root cause analysis, limited education and training facilities, dearth of a learning culture, limited quality control capability, lack of cross-functional team, inadequate modern technologies, workers' resistance to change and poor performance evaluation. Moreover, this study demonstrates how buyers can enhance their support to suppliers to receive defect-free products.

Whereas the garment industry has more than four thousand suppliers, this study considers only four suppliers. Therefore, the generalisability of the study may be questioned. Furthermore, as this study considers only a single sewing line in each factory, future studies could incorporate more lines for a holistic understanding.

The findings of this study could help the managers of supplier firms understand how to tackle the hurdles of defect-free garment production and give buyers a guideline about what role they need to play to receive defect-free garments from suppliers.

For the first time, this study presents how garment suppliers and their lead buyers play significant roles in satisfying end consumers' demand by overcoming the challenges of defect-free garment production.

Inventory control practices in medium‐sized midwestern manufacturing firms (75 to 500 employees) were investigated. Items concerning inventory model used, shortages, number of suppliers and quality assurance were included in the survey. The total number of respondents was 212 (a 54 percent response rate). Our findings identify MRP as a widely used model at present, and MRP and JIT as the inventory models of choice for the future. These findings dictate appropriate educational emphasison MRP and JIT inventory models for both students and practitioners.

Toyota's management system, more formally known as the Toyota production system (TPS) is one of the most benchmarked business improvement strategies in modern industry. While many companies try to emulate Toyota's success using a variety of different approaches, most practitioners are not aware how Toyota replicates TPS at suppliers. The purpose of this paper is to investigate the in‐house capabilities that are transferred from Toyota to suppliers as a way to more deeply understand how TPS can evolve.

This work studies Toyota's supplier development practices by evaluating organizational documents using latent semantic analysis (LSA). LSA is a theory and method for extracting and representing the contextual‐usage and meaning of words and phrases by statistical computation applied to text. LSA is based on singular value decomposition (SVD), which is a mathematical matrix decomposition technique using factor analysis.

This work shows that Toyota targets processes, rather than whole systems, in assisting suppliers to be more effective at abnormality management. Findings also show that Toyota's approval process doesn't necessarily support major kaizen at suppliers yet does encourage minor day‐to‐day kaizen. Finally, this work reports that the Toyota Way for suppliers does not have to be adopted by suppliers, but does represent “A Way” to interact with suppliers to drive both culture and productivity simultaneously.

The paper uses a new method for analyzing Toyota's supplier development practices by mathematically representing and analyzing Toyota's organizational documents. This new method allows various components and features of Toyota's supplier development process to be represented and described in a way that offers many unique insights.

How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question by investigating the delivery of value over three tiers in the supply chain, that is, from suppliers to the focal company, and further to the focal company’s customers following value chain logic.

The study is carried out as a qualitative interview study in four focal companies operating in business-to-business markets. A total of 32 interviews are conducted targeted to managers and directors of sales and marketing, purchasing, product/service development and business units.

The study unveils the characteristics and interplay of supplier-oriented and cross-functional PSM practices in customer value creation. The findings indicate that cross-functional integration between purchasing and the other functions of a focal firm is most beneficial in improving supply flexibility to fulfill customer preferences, identifying new supplier offerings for the customer and facilitating time-to-market of new products.

This study enhances managers’ understanding of the characteristics of the non-financial benefits of purchasing and the role of PSM practices in customer value creation and business success. The findings are indicative of potentially successful practices in the contexts studied.

This study contributes to the supply chain management literature on the benefits of the purchasing function by highlighting the value created for the customer of a focal company. It also extends the discussion in the supply chain management literature on customer value creating interaction processes in business relationships by focusing on PSM practices.

Both quality management and the use of information technology have been widely researched over recent years. However, there has been no well‐founded empirical research on the two together – on how IT can support quality management practices. This paper presents a research instrument to be used in such research. In order to measure the extent to which IT supports QM, the construct “quality management, supported by information technology” was operationalised. Data from 110 public organisations that have applied for the Malaysian Prime Minister’s Quality Award (Public Sector) were gathered in a field survey to enable a rigorous examination of the construct operationalised. Analysis of literature suggested eight dimensions of quality management, namely leadership, output quality assurance, strategic planning process, human resource utilisation, important innovations, information and analysis, customer satisfaction, and quality results. The research findings supported this and suggested a ninth dimension, supplier quality assurance. The empirical work indicated that “quality management supported by information technology” construct demonstrate the key psychometric properties including reliability, construct validity, and predictive validity.

This paper aims to present a model developed by an Italian company, Gamma, that produces technologically high-precision components, with the objectives of defining a model of vendor rating to improve companies’ management and quality within the supply chain.

The research has been developed through a qualitative approach, based on a longitudinal single case study. Two semi-structured interviews have been carried out with the company’s Quality Manager in September 23 and October 31, 2016. Relevant secondary data were also used, such as company reports and their website.

Owing to the implementation of the Gamma model, the company is committed to the prudent selection of its partners and in establishing lasting relationships of mutual benefit with them. The termination of the relationship with suppliers is therefore rare; monitoring periods and improvement of suppliers are preferred. The Gamma model and its suppliers jointly undertake corrective actions that have to be implemented within a defined time frame.

Establishing criteria for an objective evaluation of suppliers could be directly or indirectly related to the quality of the final product, and greatly affects the same. This model has been effective for the identification of less performing suppliers that have to be subjected to improvement and audit plans.

This model allows the assignment of penalties or rewards, identifies which suppliers to direct audits and improvement plans, with which to end the relationship and with which to establish a relationship of integration and direct involvement.