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1 – 5 of 5There is a growing body of conceptual work considering the potential of AI in supply chain and procurement, and there is great interest in AI among managers. But, according to a…
Abstract
Purpose
There is a growing body of conceptual work considering the potential of AI in supply chain and procurement, and there is great interest in AI among managers. But, according to a recent study, digital strategies for procurement are often missing or not satisfactory. Literature offers conflicting guidance on possible adoption areas for AI in core procurement processes. Given the need for better digital strategies for procurement and the need to further develop the understanding of adoption potential, the purpose of this paper is to explore actual adoption levels, experienced benefits, readiness levels and barriers to implementation in industry. This informs nuanced, not hyped, managerial consideration and identifies further research opportunities.
Design/methodology/approach
Leveraging items used in literature to study adoption of other technologies, the authors conduct the first empirical exploration of actual adoption levels of AI in procurement. The authors do so by collecting survey responses in three manager workshops, and the authors use the workshops to seek manager input in the interpretation of findings and the identification of implications for managers and researchers.
Findings
There appears to be less consideration given to AI in procurement than interest in the topic might imply. Adoption levels are generally low, implying that there is a lot of room for the development of consideration, use cases and possible pilots by managers and researchers. The authors find procurement benefits of AI adoption to be broader than costs and productivity alone, including visibility and innovation. But, readiness appears to be at relatively low levels with factors commonly considered in literature, such as executive support and willingness to invest, less relevant than less widely considered elements such as human sense making and supplier readiness.
Originality/value
This first empirical exploration moves past conceptualization and the study of potential adoption into the study of actual adoption levels in different procurement core processes. The authors expand the consideration of readiness by including additional items of human sense making as called for in literature. The authors also include and develop supplier readiness consideration, which is often missing from research. With the help of participating managers, the authors are able to develop a more comprehensive framework for the consideration of AI adoption. This can help bring nuance, not hype, to consideration and provides a rich portfolio of research items and constructs to further explore.
Remko van Hoek and Thomas Udesen
Supplier codes of conduct are amongst the most widely used practices in sustainable procurement programs. While there are limitations and risks involved in using supplier codes of…
Abstract
Purpose
Supplier codes of conduct are amongst the most widely used practices in sustainable procurement programs. While there are limitations and risks involved in using supplier codes of conduct (including the risk of greenwashing, a weak link to action and the inability of supplier to comply), there is only a modest amount of research on the topic, other than content analysis. We aim to contribute to research both lessons learned, over a two-decade period, about the implementation and use of a supplier code of conduct from a case study, as well as, to suggest further research that can support the industry and enrich insight into the effective adoption of supply codes of conduct.
Design/methodology/approach
Thanks to the support of our co-author from Bayer we are able to share lessons learned by the global procurement team of Bayer and use these as a basis for suggesting questions for further research. The approach of this paper centres on the adoption and implementation of the supplier code of conduct in an effort to complement existing research on supplier codes of conduct that is largely focused on code of conduct content, less on the implementation of codes of conduct. The collaboration with our co-author from Bayer enables direct access to experiences and managerial perspectives. By considering the two-decade journey towards more sustainable supply chain management at Bayer, we are able to achieve a longitudinal perspective on adoption and implementation aspects.
Findings
Bayer ensures personal and community engagement in its sustainable procurement program in order to drive action and improve decision making along the value chains. The company regularly updates its code of conduct to stay aligned with its maturity and complements the code of conduct with a continuous improvement focus, supported by both generic and industry-specific consortia. The company has not yet been able to establish direct visibility into the conduct of tier 2 and up suppliers.
Originality/value
This paper helps close a gap in the literature and provides input into industry efforts in one of the most widely used practices in sustainable procurement. We hope that the research questions that we developed based on the first 20+ years of Bayer’s learning journey towards sustainable procurement will inspire research that can impact industry efforts towards creating a more sustainable future.
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Remko van Hoek, Dominique Lebigot, Antoine Bagot and Shannon Sexton
Supplier diversity has roots in US supply chains going back 50 years. Unfortunately, supplier diversity programs have been hindered by less than wholehearted buyer adoption and…
Abstract
Purpose
Supplier diversity has roots in US supply chains going back 50 years. Unfortunately, supplier diversity programs have been hindered by less than wholehearted buyer adoption and stakeholder engagement. The original scoping of supplier diversity also holds limitations when comparing to the multidimensionality of the diversity and inclusion concept. The purpose of this article is to share lessons learned from the development of an innovative supplier diversity program by Moet Hennessy aimed at more sustainably scoping, scaling and stimulating supplier diversity programs.
Design/methodology/approach
The development and the design of Moet Hennessy’s supplier diversity program is presented. The design was informed, and partially supported by, a collaboration with the author. Critical reflections on pitfalls and outstanding questions are developed based upon the program design.
Findings
Moet Hennessy developed a supplier diversity program that is more comprehensively defined, targets a more global scale and includes innovative stakeholder engagement techniques such as the development of supplier diversity champions in the business. The program also is embedded in existing environmental social and governance initiatives.
Originality/value
Moet Hennessy’s supplier diversity program was not mandated by one of its customers but sourced from an academic collaboration and stimulated by competitive opportunity. The program was designed bottoms up, not top down. The program is sponsored outside of procurement and has champions throughout the business. The program expands beyond the traditional scoping of supplier diversity programs. Pathways and pitfalls for managers are identified based upon insights from Moet Hennessy’s experience. These inform suggestions for further research.
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Yu Han, Anna Yumiao Tian, Woon Kian Chong, Alain Yee Loong Chong and Antony Paulraj
The purpose of this paper is to provide small and medium-sized enterprises (SMEs) in emerging markets with an updated Purchasing Portfolio Matrix (PPM) specifically for…
Abstract
Purpose
The purpose of this paper is to provide small and medium-sized enterprises (SMEs) in emerging markets with an updated Purchasing Portfolio Matrix (PPM) specifically for international sourcing. This data-driven PPM matrix is designed to provide a dynamic and process perspective that can help SMEs survive the disruptions caused by emergency situations such as the global COVID-19 pandemic.
Design/methodology/approach
This research reports on qualitative interviews with experienced informants from 15 SMEs in the manufacturing industry. The authors follow process-based research using a combination of retrospective and real-time case study approaches to gradually unveil the dynamics in segmentation and sourcing strategies in the international sourcing context during the COVID-19 pandemic.
Findings
The findings reveal the dynamics of segmentation and international sourcing strategies during global disruptions and unpack the underlying logic behind the dynamics that is specific to SMEs in emerging economies.
Originality/value
Existing literature on PPM predominantly focuses on static and normal sourcing circumstances. This paper addresses this gap by adopting a dynamic approach to study how sourcing strategies of SMEs from emerging economies evolve in a highly volatile environment from an international sourcing perspective.
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Quanxi Li, Haowei Zhang, Kailing Liu, Zuopeng Justin Zhang and Sajjad M. Jasimuddin
There has been limited research that has explored the connection between digital supply chain (DSC) and SC innovation and SC dynamic capabilities. This paper aims to examine the…
Abstract
Purpose
There has been limited research that has explored the connection between digital supply chain (DSC) and SC innovation and SC dynamic capabilities. This paper aims to examine the mediating effect of SC innovation on the relationship between DSC and SC dynamic capabilities.
Design/methodology/approach
The research model and hypotheses were tested, employing (Statistical Package of Social Sciences) SPSS 25.0 and (Analysis of Moment Structures) AMOS 24.0 on data drawn from the Chinese manufacturing enterprises.
Findings
The study reveals that DSC has a significant positive effect on SC innovation and SC dynamic capabilities. SC innovation also has a significant positive effect on SC dynamic capabilities. Besides, the authors' research illustrates that SC innovation partially mediates the relationship between DSC and SC dynamic capabilities.
Research limitations/implications
Since the results are derived from the data collected from China, it may not, therefore, be generalized to other settings. Moreover, future research could consider other contextual variables such as “environmental uncertainty” and “Government's Reward-Penalty Mechanism,” which may influence SC dynamic capabilities.
Practical implications
The study provides practical insights for senior executives and managers in the manufacturing industry. Managers should emphasize the investment of advanced digital technologies and tools (DTTs) and improvement of SC visibility and collaboration. In the digital age, companies should pay attention to the introduction of advanced technologies, tools and processes and focus on cultivating an innovative spirit to promote SC dynamic capabilities, thereby enhancing competitive advantages.
Originality/value
The paper illustrates that DSC is of great significance to improving SC dynamic capabilities. This study reveals compelling insights for firms to enhance SC innovation and dynamic capabilities by using DSC as an enabler.
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