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Article
Publication date: 9 June 2023

Nian Zhang, Shuo Zheng, Lingyuan Tian and Guiwu Wei

In the supply chain disruption risk, the issue of supplier evaluation and selection is solved by an extended VIKOR method based on regret theory.

Abstract

Purpose

In the supply chain disruption risk, the issue of supplier evaluation and selection is solved by an extended VIKOR method based on regret theory.

Design/methodology/approach

Considering the influence of irrational emotions of decision makers, an evaluation model is designed by the regret theory and VIKOR method, which makes the decision-making process closer to reality.

Findings

The paper has some innovations in the evaluation index system and evaluation model construction. The method has good stability under the risk of supply chain interruption.

Originality/value

The mixed evaluation information is used to describe the attributes, and the evaluation index system is constructed by the combined method of the social network analysis method and the literature research method to ensure the accuracy and accuracy of the extracted attributes. The issue of supplier evaluation and selection is solved by an extended VIKOR method based on regret theory.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 June 2016

Stefan Winter and Rainer Lasch

Companies have to assess the benefit of supplier innovation before realization. The specific situation of supplier innovation differs from conventional innovation evaluation

1668

Abstract

Purpose

Companies have to assess the benefit of supplier innovation before realization. The specific situation of supplier innovation differs from conventional innovation evaluation because a supplier innovation refers to a subproduct for which the supplier is responsible. To date, supplier innovation evaluation has not been comprehensively discussed in the literature. Therefore, the purpose of this paper is to focus on how supplier innovation should be evaluated.

Design/methodology/approach

For this purpose, a case study based on expert interviews has been conducted to identify how supplier innovation is evaluated in practice. On the basis of the empirical findings the specific situation of supplier innovation is discussed in relation to theoretical basics about the object, objective, time, reference, person, recipient, criteria, and methods of evaluation as well as the evaluation and selection process.

Findings

Results are recommendations for the special situation of supplier innovation evaluation before their realization in the purchasing company.

Research limitations/implications

Based on the recommendations, a systematic and comprehensive approach with evaluation criteria and methods should be developed. Future research should address useful evaluation criteria and methods.

Practical implications

Managers can use the recommendations to evaluate supplier innovation in practice and to establish a systematic evaluation and selection process for supplier innovation.

Originality/value

The research findings contribute to the literature about innovation management and supplier management research by providing insights into the special situation of supplier innovation evaluation; in particular, this is the first paper which provides a systematic and comprehensive discussion about supplier innovation evaluation.

Details

International Journal of Operations & Production Management, vol. 36 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 19 July 2011

Kim Sundtoft Hald and Chris Ellegaard

The purpose of this paper is to illuminate how supplier evaluation practices are linked to supplier performance improvements. Specifically, the paper investigates how performance…

12308

Abstract

Purpose

The purpose of this paper is to illuminate how supplier evaluation practices are linked to supplier performance improvements. Specifically, the paper investigates how performance information travelling between the evaluating buyer and the evaluated suppliers is shaped and reshaped in the evaluation process.

Design/methodology/approach

The paper relies on a multiple, longitudinal case research methodology. The two cases show two companies' efforts in designing, implementing, and using supplier evaluation in order to improve supplier performance.

Findings

The findings show how the dynamics of representing, reducing, amplifying, dampening, and directing shape and reshape supplier evaluation information. In both companies, evaluation practices were defined, redefined, and re‐directed by the involved actors' perception and decision making, as well as organisational structures, IT systems, and available data sources.

Research limitations/implications

The identified factors and dynamics could be empirically tested on larger samples to increase generalisability.

Practical implications

The results provide insights into how an evaluating buyer may analyse and control supplier evaluation processes thereby improving their effects. Managers must know how performance information is altered before reaching key supplier actors in order to optimise supplier performance.

Originality/value

Current studies on supplier evaluation practices are limited in their focus on design, implementation, or use. This paper explores all three phases empirically, and proposes a set of dynamics to better understand and control the often taken for granted link between intentions and outcome of such practices. In relation to future research, the authors propose a more holistic direction, which will take the entire supplier evaluation process as its unit of analysis.

Details

International Journal of Operations & Production Management, vol. 31 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 June 1994

Lyn Purdy, Unni Astad and Frank Safayeni

Nineteen automotive supply organizations were interviewed regardingtheir perceptions of the effectiveness of a North American automotivecertification programme. The major findings…

2248

Abstract

Nineteen automotive supply organizations were interviewed regarding their perceptions of the effectiveness of a North American automotive certification programme. The major findings were that: suppliers viewed preparing for the evaluation as the most important aspects of the process; the evaluators detected only a small percentage of the suppliers′ significant business and manufacturing problems; suppliers perceived an overemphasis on procedures and documentation on the part of the evaluators; and suppliers felt that the evaluation did not accurately reflect their effectiveness. It was concluded that the supplier evaluation programme reflected the management style of the large bureaucratic customer organization, which was not necessarily appropriate for the size and nature of the supplier′s business. Further, good performance on the evaluation did not directly correspond with further business contracts.

Details

International Journal of Operations & Production Management, vol. 14 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 25 July 2019

Tritos Laosirihongthong, Premaratne Samaranayake and Sev Nagalingam

The purpose of this paper is to propose a holistic approach for supplier evaluation and purchasing order allocation among the ranked suppliers who meet acceptable levels of…

2086

Abstract

Purpose

The purpose of this paper is to propose a holistic approach for supplier evaluation and purchasing order allocation among the ranked suppliers who meet acceptable levels of economic, environmental and social measures.

Design/methodology/approach

A mixed research method of case study and analytical approach is adopted in this research. A fuzzy analytical hierarchical process (FAHP) is applied for ranking of suppliers. Supplier ranks are validated using judgements from multiple decision makers. Purchasing order allocation among the ranked suppliers is determined using cost minimization subject to multiple criteria of economic, environmental and social conditions. A cement manufacturing case example demonstrates and validates the proposed approach.

Findings

The research shows that both economic and environmental considerations are significant when suppliers are evaluated for sustainable procurement within the best practice of supply management process. Ranking of suppliers, based on experts’ opinions, indicates varying degrees of importance for each criterion. Adoption of sustainable procurement criteria for evaluating supplier in a cement manufacturing organization is explained by three organizational theories including resource-based, institutional and dynamic capabilities theories. Preferred suppliers from FAHP method are confirmed by judgements from multiple decision-makers. The analysis reveals that purchasing order allocation is different when suppliers are evaluated based on their relative importance and overall ranking.

Research limitations/implications

Currently, individual performance measures and decision-makers are selected from a limited set. The purchasing allocation among ranked suppliers, subjected to cost minimization, incorporates environmental objective of acceptable carbon dioxide emission and social perspective of health and safety of workers, and provides a new approach for dual supplier evaluation and purchasing allocation problem in cement industry. Adopting the proposed supplier evaluation and order allocation approach in practice needs to be guided by the operational principles and an overall methodology which is appropriate for the specific industry with sustainability objectives.

Practical implications

This research enables decision-makers to incorporate sustainability analysis in the supplier evaluation as the basis for best practice with an industry-friendly holistic approach. Using organizational theories, the research re-enforces the importance of not only the energy consumption and environmental management systems of environmental dimension as driving forces/factors from Institutional theory perspective, but also pollution controls and prevention as purchasing capabilities from resource-based theory perspective. The proposed approach is expected to motivate decision-makers to consider sustainable perspectives in supplier evaluation and order allocation processes in a global supply chain and can become a benchmarking tool.

Social implications

Suppliers’ information on health and safety of their truck drivers are used in order allocation, thus emphasizing the importance of social dimension and encouraging better conditions and benchmarking for delivery drivers.

Originality/value

This paper extends the contribution to the literature by providing guidelines for managers to set strategies, benchmarks and policies within broader sustainable supply chain practices and demonstrates the applicability of the approach using a cement-manufacturing scenario in an emerging economy.

Article
Publication date: 1 October 1995

Lisa M. Ellram

Total cost of ownership is a methodology and philosophy which looksbeyond the price of a purchase to include many other purchaserelatedcosts. This approach has become increasingly…

22106

Abstract

Total cost of ownership is a methodology and philosophy which looks beyond the price of a purchase to include many other purchaserelated costs. This approach has become increasingly important as organizations look for ways to better understand and manage their costs. Examines case studies of 11 firms which use total cost of ownership concepts in purchasing. Based on the case study data and the literature, barriers and benefits associated with the total cost of ownership approach are discussed. The total cost of ownership models used by the case study firms are classified by type as dollar‐based or value‐based, and an example of each is shown. The total cost of ownership models are then further classified by their primary usage: supplier selection or supplier evaluation. This cross classification reveals a strong relationship between model type and model usage. Concludes with a comparison of the models, recommendations for practitioners and a discussion of future research directions.

Details

International Journal of Physical Distribution & Logistics Management, vol. 25 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 August 2005

S. Gary Teng and Hector Jaramillo

The issue affecting US textile/apparel companies in global business competition is to find suitable suppliers for their operations. The selection and evaluation of their global…

11471

Abstract

Purpose

The issue affecting US textile/apparel companies in global business competition is to find suitable suppliers for their operations. The selection and evaluation of their global suppliers to meet the goal of having effective and efficient supply chain operations and strengthening their position in the market become critical for US textile/apparel manufacturers to maintain their competitiveness in today's market. Aims to develop an evaluation model.

Design/methodology/approach

The development of a simple, flexible, and easy to use evaluation model that includes the consideration of five main clusters to reflect the performance of a global supplier in a textile/apparel supply chain.

Findings

A case presented in this paper shows that the model provides textile/apparel companies with an easy way to evaluate their suppliers and make their selection of suppliers more efficient and effective. Most textile/apparel companies using this model can help them establish strategic alliance with global suppliers to reduce costs and increase competitiveness in the market.

Practical implications

Textile/apparel companies can use this model to find capable suppliers as their partners in the supply chain. With minor modifications, this model also can help companies in most industries for enhancing their supply chain operations with capable suppliers.

Originality/value

Provides a simple model that can help companies in many industries enhance their supply chain operations.

Details

International Journal of Physical Distribution & Logistics Management, vol. 35 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 25 January 2013

Jin Su

The purpose of this paper is to investigate performance outcomes of strategic sourcing, specifically examining how strategic sourcing affects buyer‐supplier relationship, supplier

5638

Abstract

Purpose

The purpose of this paper is to investigate performance outcomes of strategic sourcing, specifically examining how strategic sourcing affects buyer‐supplier relationship, supplier evaluation, and sourcing performance from the buying firm's perspective in the context of the US textile and apparel industry.

Design/methodology/approach

This study provides an empirical investigation of a theory‐based model integrating the resource‐based view and the relational view of strategic management. The model is tested using data from 180 US textile and apparel firms by structural equation modeling.

Findings

The survey results indicate that strategic sourcing significantly impacts buyer‐supplier relationships, supplier evaluation, and sourcing performance of buying companies. The study also shows that supplier evaluation significantly influences buyer‐supplier relationship.

Research limitations/implications

Given that the data are from a specific industry, the generalizability of current findings to other industries may require additional investigation.

Practical implications

Sourcing becomes a key strategic consideration for textile and apparel firms to sustain or improve their competitiveness.

Originality/value

The study contributes to the literature by developing a research model based on a multi‐theoretical perspective and conducting a large‐scale empirical survey in the textile and apparel industry and analyzing the model by structural equation modeling. The dynamic textile and apparel industry is a classical representation of global supply chain, characterized by the industry's significant contribution to the world economy and international trade, the extremely worldwide spread supply network, and the tremendous competition in global market. Examining strategic sourcing's influences in this important industry provides many valuable implications for industrial practitioners.

Article
Publication date: 13 February 2017

Luitzen de Boer

The purpose of this paper is to present three heuristics for choosing supplier selection criteria. By considering the balance between the expected relative effort and benefit of…

2036

Abstract

Purpose

The purpose of this paper is to present three heuristics for choosing supplier selection criteria. By considering the balance between the expected relative effort and benefit of using different selection criteria, the heuristics suggest which criteria should be prioritized. The heuristics serve to develop our understanding of the search and evaluation heuristics used in supplier selection and to facilitate further research.

Design/methodology/approach

The research is primarily theoretical, yet draws on empirical studies of supplier selection. The theoretical basis is Simon’s notion of procedural rationality (Simon, 1976). The author makes the general notion of procedural rationality more concrete for supplier selection by formally describing three heuristics for choosing selection criteria. The heuristics share the same logic but differ in terms of the precision of the input information required from the purchaser. The paper provides illustrations of the heuristics.

Findings

It appears that procedural rationality can be specified for the process of designing the supplier selection process by explicitly recognizing the cost and value of selection criteria. There is no one way of doing this, but at the most basic level, it requires an ordinal ranking of criteria. Already such a rudimentary, qualitative, assessment can help identifying suitable criteria. The heuristics developed appear compatible with established approaches for the subsequent selection of suppliers.

Originality/value

The paper addresses the early stage of supplier selection which has been largely ignored in the literature.

Details

Management Decision, vol. 55 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 7 August 2007

Andrew Pressey, Nikolaos Tzokas and Heidi Winklhofer

Previous research has reported that the adoption of a strategic purchasing orientation (SPO) requires closer relationships with key suppliers and greater long‐term planning in…

4221

Abstract

Purpose

Previous research has reported that the adoption of a strategic purchasing orientation (SPO) requires closer relationships with key suppliers and greater long‐term planning in supply management. This paper aims to develop a generic framework for the evaluation of key supply relationships incorporating seven key categories and to empirically test these assumptions by comparing firms reporting high levels of strategic purchasing to those with low levels.

Design/methodology/approach

The data collection employed a mail survey sent to the senior manager responsible for purchasing in their organisation (n = 50).

Findings

The article finds that high SPO firms more closely scrutinise their supply relationships across a broad range of attributes, and, as well as perennially important issues such as quality and delivery, they emphasise “fit” between buyer and supplier (e.g. fit with the competitive strategy and organisational culture of the buying firm) as an important criterion in identifying failing relationships.

Research limitations/implications

The positioning of the current study as one of the first to address the evaluation of suppliers under strategic purchasing adoption calls for further replication.

Practical implications

The results of this study afford suppliers an understanding of the criteria by which firms adopting strategic purchasing evaluate troubled or weak relationships. This would seem particularly timely given the shift towards strategic purchasing by many organisations.

Originality/value

This study presents one of the first attempts to assess “ineffective” supplier performance and to incorporate metrics on strategic supplier selection.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

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