Martin Lockström

Strategic sourcing: a combined QFD and AHP approach in manufacturing

Purpose – This paper aims to develop an integrated analytical approach, combining quality function deployment (QFD) and analytic hierarchy process (AHP) approach, to enhance the effectiveness of sourcing decisions. Design/methodology/approach – In the approach, QFD is used to translate the company stakeholder requirements into multiple evaluating factors for supplier selection, which are used to benchmark the suppliers. AHP is used to determine the importance of evaluating factors and preference of each supplier with respect to each selection criterion. Findings – The effectiveness of the proposed approach is demonstrated by applying it to a UK-based automobile manufacturing company. With QFD, the evaluating factors are related to the strategic intent of the company through the involvement of concerned stakeholders. This ensures successful strategic sourcing. The application of AHP ensures consistent supplier performance measurement using benchmarking approach. Research limitations/implications – The proposed integrated approach can be principally adopted in other decision-making scenarios for effective management of the supply chain. Practical implications – The proposed integrated approach can be used as a group-based decision support system for supplier selection, in which all relevant stakeholders are involved to identify various quantitative and qualitative evaluating criteria, and their importance. Originality/value – Various approaches that can deal with multiple and conflicting criteria have been adopted for the supplier selection. However, they fail to consider the impact of business objectives and the requirements of company stakeholders in the identification of evaluating criteria for strategic supplier selection. The proposed integrated approach outranks the conventional approaches to supplier selection and supplier performance measurement because the sourcing strategy and supplier selection are derived from the corporate/business strategy.

Successful supplier integration in the Chinese automotive industry: A theoretical framework

This paper seeks to develop a supplier integration framework in a Chinese context based on existing theories and empirical insights from the Chinese automotive industry. The objective is to develop a framework and identify a number of factors that can potentially facilitate supplier integration and ultimately improve supply chain performance. The framework comprises a causal chain with four key constructs, starting with supply chain leadership as an antecedent to alliance readiness, which in turn is proposed to yield a higher degree of supplier integration. Eventually, a higher degree of supplier integration is proposed to positively influence supply chain performance. By building on prior research and 30 case studies, the framework provides a China-specific approach to supplier integration and offers insights into the current status in the Chinese automotive industry.

The role of resources in global sourcing: development of a theoretical framework

Due to globalisation, global sourcing has become an imperative for companies to stay competitive in the long term. In earlier management literature, theoretical discussions have predominantly been based on transaction-cost theory or the market-based view. This paper takes a novel approach by examining the theoretical implication of intra- and inter-firm resources on global sourcing performance. Subsequently, a set of 13 hypotheses were derived. The result of the paper is a viable conceptual framework for explaining the role of resources for global sourcing as a contemporary phenomenon.

The Electric Vehicle Industry in China and India: The Role of Governments for Industry Development

With the Copenhagen discussions recently taken place, it is fair to say that the acknowledgement of global warming as a potential threat to our planet has never been greater. Despite the lack of all-embracing, world-wide consensus, the trend is nevertheless going toward a situation with strengthened control and regulatory frameworks in order to reduce greenhouse gas emissions. Recently, the G8 countries signed a treaty to reduce average global temperature by two degrees centigrade until the year 2050. However, this calls for a multilateral commitment at all levels of society — from the beginning of the supply chain starting with raw materials extractors — not ending at the final consumer, but also considering waste and disposal after consumption. Virtually all industries are affected, especially big emitters like the automotive industry.

Readiness for Supply Chain Collaboration and Supplier Integration—Findings from the Chinese Automotive Industry

The efforts among automotive companies in China to find suitable domestic suppliers have to be seen as a response to local content requirements promulgated by the Chinese central government but also as part of the global sourcing strategy among the producers. Therefore, automotive companies, both original equipment manufacturers (OEMs) and their Western suppliers, are currently trying to integrate more domestic suppliers in their supply chains in China (Holweg et al., 2005). The automotive industry is suitable for further research of complex buyer-supplier interactions because it can also be considered a networked industry implying that it is virtually impossible for any firm alone to possess all the technical expertise and capabilities needed to develop and produce a complex product (Binder et al., 2007; Holweg and Pil, 2007).