Lisa M. Ellram

Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy

The concepts of a supply chain and supply chain management are receiving increased attention as means of becoming or remaining competitive in a globally challenging environment. What distinguishes supply chain management from other channel relationships? This paper presents a framework for differentiating between traditional systems and supply chain management systems. These characteristics are then related to the process of establishing and managing a supply chain. A particular focus of this paper is on the implications of supply chain management for purchasing and logistics.

A portfolio approach to supplier relationships

Abstract The use of portfolio models in marketing and purchasing has been limited. In this study, a three-step portfolio model to assist in managing different kinds of supplier relationships is developed. The critique of portfolio models used in strategic planning is discussed in relation to the proposed model, and suggestions for future research are provided.

Supply Chain Management, Partnership, and the Shipper ‐ Third Party Relationship

The paper begins with an overview of some of the forces that have shaped supply chain management and partnership relationships. Next the potential benefits and risks of involvement in supply chain management/partnership relationships are discussed from the perspective of both the shipper and the service provider (warehousers and transportation firms). Results from a major survey of shippers, warehousers and transportation providers are used to illustrate the risks and benefits. Means of minimizing the potential risks are also suggested. The paper concludes with a discussion of issues in supply chain management that would benefit from further analysis and research. These issues include determination of whether a firm should use a supply chain management approach, the management structure to use in supply chain management, and modelling supply chain management systems.

An analysis of supply risk assessment techniques

Purchasing organizations are exposed to risk in their interactions with suppliers, whether it is recognized and managed, addressed in a cursory manner, or altogether ignored. In order to understand the supply risk that exists, purchasing organizations can proactively assess the probability and impact of supply risk in advance, or reactively discover risk after a detrimental event occurs. The purpose of this study is to explore, analyze, and derive common themes on supply risk assessment techniques. Findings from this research indicate that purchasing organizations can assess supply risk with techniques that focus on addressing supplier quality issues, improving supplier processes, and reducing the likelihood of supply disruptions. From an agency theory perspective, these risk assessment techniques facilitate the obtaining of information by purchasing organizations to verify supplier behaviors, promoting goal congruence between buying and selling firms, and reducing outcome uncertainty associated with inbound supply.

Total cost of ownership: an analysis approach for purchasing

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.

Supply‐Chain Management: The Industrial Organisation Perspective

While supply chain management concepts are receiving increasing attention in literature and practice, the supply chain management philosophy is supported by a limited theoretical base. The industrial organisation literature related to the advantages, disadvantages and applications of vertical integration and obligational contracts is explored. The industrial organisation literature regarding vertical integration and obligational contracts is related to supply chain management. The advantages and disadvantages which supply chain management shares with vertical integration and obligational contracts are discussed. It is concluded that supply chain management is a way of combining many of the advantages of vertical integration and obligational contracts, while overcoming some of their disadvantages. Using the industrial organisation literature and findings from two case studies, prerequisites are developed for supply chain management, and three competitive situations are described. Supply chain management ho...

Success factors in supplier development

Presents results of a survey on supplier development. Surveys were mailed to a random sample of 1,504 NAPM members. The sample was split into two groups depending on how respondents judged the results of their supplier development effort, either exceeding or falling short of expectations. The responses of these two groups to various questionnaire items were investigated to identify and gain insight into factors that contribute to supplier development success. The analysis suggests that buying firm respondents who reported their firms’ supplier development efforts to be satisfactory were more likely to have a proactive philosophy regarding suppliers’ performance, put more effort and resources into their supplier development efforts, and exhibit a greater willingness to share information with their suppliers than their counterparts who were generally dissatisfied with their firms’ supplier development results.

Critical elements of supplier development The buying-firm perspective

Abstract Supplier development is defined as any effort of a buying firm with its supplier to increase the performance and/or capabilities of the supplier and meet the buying firms supply needs. From the buying firms perspective, effective two-way communication, top management involvement, teams, and purchasing a relatively large percentage of the suppliers output are critical to the supplier development effort. This article (1) discusses the importance of supplier development, (2) reviews literature to identify potential critical elements of supplier development, and (3) reports the results of an analysis of survey data from US buying firms that explored these critical elements.

Supplier Selection Using Multi‐objective Programming: A Decision Support System Approach

Explores the use of a multi‐objective programming approach as a method for supplier selection in a just‐in‐time (JIT) setting. Based on a case study, develops a model of JIT supplier selection which allows for simultaneous trade‐offs of price, delivery and quality criteria. The analysis occurs in a decision support system environment. A multi‐objective programming decision support system is seen as advantageous because such an environment allows for judgement in decision making while simultaneously trading off key supplier selection criteria. An additional flexibility of this model is that it allows a varying number of suppliers into the solution, and provides suggested volume allocation by supplier.

Services Supply Management: The Next Frontier for Improved Organizational Performance

This article explores how the purchase of services is managed within the organization, the risks associated with current services purchasing practices, and how to improve the professional management of services purchases. Survey data obtained from benchmarking research performed by CAPS Center for Strategic Supply Research reveal that purchasing services is viewed as more difficult than purchasing goods. In addition, while purchasing of services is growing in importance and magnitude, the resources to manage it are not. Accordingly, there are huge opportunities for organizations to improve their services purchasing in terms of cost and value, by dedicating more, and perhaps different, resources to services purchasing. Developing an outstanding capability to purchase services, and to manage that purchase, could truly be the next frontier for improved supply chain and organizational performance.