Paul Humphreys

INTEGRATING ENVIRONMENTAL CRITERIA INTO THE SUPPLIER SELECTION PROCESS

Abstract In this paper, a framework for integrating environmental factors into the supplier selection process is presented. Traditionally, companies consider factors like quality, flexibility, etc. when evaluating supplier performance. However, environmental pressure is increasing, resulting in many companies (mainly large companies) beginning to consider environmental issues and the measurement of their suppliers’ environmental performance. This paper aims to develop a decision support tool which should help companies to integrate environmental criteria into their supplier selection process. Subsequently, a framework of the supplier selection process which incorporates environmental performance is developed. Finally, a knowledge-based system is constructed based on the proposed framework is presented and an example is used to illustrate how the knowledge-based system would be implemented.

An inter-organizational information system for supply chain management

Abstract The deployment of the emerging concepts of information technology, strategic alliances, and business process re-engineering within the intra/inter-organizational context have become a popular prescription in enhancing supply chain management. This paper reviews the theoretical foundations for the study of inter-organizational relationships within a supply chain management context, and analyzes the contingencies of deploying inter-organizational information systems (IOIS). A framework is proposed which deploys IOIS from an IOIS providers perspective. The framework is discussed from the viewpoint of using a strategic information system within the context of the China to Hong Kong to importing country supply chain.

Collaborative supply chain practices and performance: exploring the key role of information quality

Purpose - This paper seeks to report the results of a study examining the importance of information quality for the efficacy of collaborative supply chain practices. Design/methodology/approach - A questionnaire was sent to procurement managers throughout the supply chain within the German automotive industry. Regression analyses illustrate the differences in performance of collaborative practices under high and low information quality scenarios. Findings - The study illustrates that the impact of collaborative supply chain practices (i.e. information sharing, incentive alignment, joint-decision making) on performance varies significantly depending on the quality of information that is exchanged throughout the supply chain. Specifically, whilst information sharing improves operational performance when low and high quality information is exchanged, incentive alignment and joint decision making only improve operational performance when the information is of high quality. Originality/value - Although research on the performance impact of collaborative supply chain practices has advanced over the past decade, there is still a scarcity of research acknowledging the multidimensional nature of collaboration. Additionally, the importance of information quality for the success of collaborative practices has not been firmly established. The paper addresses this void in the literature by reporting results of an empirical study examining collaborative supply chains and practices within the German automotive industry. The paper will thus be beneficial to supply chain managers considering collaborative practices and will support further empirical research work in the collaborative supply chain research field.

A strategic model for the formulation of an effective make or buy decision

Illustrates that the make or buy is a strategic decision and has implications for the overall corporate strategy of the organization by describing a model which involves analysing a number of strategic factors. In recent years, many companies have been moving significantly away from “making” towards “buying”. However, research has revealed that make or buy decisions are rarely taken within a thoroughly strategic perspective. It has been shown that many firms adopt a short‐term perspective and are motivated primarily by the search for short‐term cost reductions. It is argued that make or buy decisions are made most frequently by default with little consideration for the long‐run competitiveness of the organization. Presents an outline of three key problems encountered by companies in their efforts to formulate an effective make or buy decision to illustrate the weaknesses in current make or buy practice. The make or buy model described in this article attempts to overcome these problems by offering an organization a conceptual framework to follow in the sourcing decision.

Pre‐construction project partnering: from adversarial to collaborative relationships

The use of subcontracting within the construction industry has become commonplace with many main contractors only undertaking the management and co‐ordination activities. The reliance on subcontractors has put much stress on the main contractor‐subcontractor relationship. As main contractors have realised that the greatest potential for cost savings lies with the subcontractors, the prevalence of unfair practices has increased. This paper describes a procurement approach, utilising limited competition, developed by a major UK main contractor in order to improve its relationships with subcontractors. The approach developed was based on research which identified: what the main contractor’s professional employees want from subcontractors; what subcontractors want from main contractors; and a study to compare the main contractor’s performance with that of its competitors. It was concluded that this approach offers a number of benefits for the client, the main contractor, partnering subcontractors and professional consultants, such as, lower costs, improved team approach and less confrontation.

Collaborative buyer‐supplier relationships in Hong Kong manufacturing firms

The relationships between buyers and suppliers have received considerable attention in recent years. Traditionally, buyer‐supplier relationships were considered as adversarial, arm’s‐length transactions. However, this relationship is moving towards a more collaborative approach. This change is subjected to the belief that suppliers are essential sources to gain competitive advantage in world markets in terms of their expertise, knowledge and their ability to share risks. The paper presents the initial findings from the responses of large companies in Hong Kong about their supplier criteria requirement. The results are also compared with a similar study conducted in the United Kingdom to obtain a clearer picture concerning Eastern and Western approaches to strategic purchasing. Some of the key reasons for the differences between purchasing practices in European and Asian companies are outlined. Such information is potentially useful since it can be used as a reference guideline for suppliers when initiating collaborative relationships with customers, who may come from different cultural backgrounds.

Employing dynamic fuzzy membership functions to assess environmental performance in the supplier selection process

The proposed system illustrates that logic fuzzy can be used to aid management in assessing a suppliers environmental performance in the supplier selection process. A user-centred hierarchical system employing scalable fuzzy membership functions implement human priorities in the supplier selection process, with particular focus on a suppliers environmental performance. Traditionally, when evaluating supplier performance, companies have considered criteria such as price, quality, flexibility, etc. These criteria are of varying importance to individual companies pertaining to their own specific objectives. However, with environmental pressures increasing, many companies have begun to give more attention to environmental issues and, in particular, to their suppliers’ environmental performance. The framework presented here was developed to introduce efficiently environmental criteria into the existing supplier selection process and to reflect on its relevant importance to individual companies. The system presented attempts to simulate the human preference given to particular supplier selection criteria with particular focus on environmental issues when considering supplier selection. The system considers environmental data from multiple aspects of a suppliers business, and based on the relevant impact this will have on a Buying Organization, a decision is reached on the suitability of the supplier. This enables a particular suppliers strengths and weaknesses to be considered as well as considering their significance and relevance to the Buying Organization.

The implications of electronic B2B intermediaries for the buyer‐supplier interface

This paper examines the implications of electronic business‐to‐business intermediaries for the buyer‐supplier interface. Innovations in electronic commerce have a key role to play in managing inter‐organisational networks of supply chain members. The evidence presented in this paper illustrates that the Internet represents a powerful technology for commerce and communication at the buyer‐supplier interface. An overview is provided of the evolution of electronic commerce at the buyer‐supplier interface and the typical business models that have been developed. A theoretical framework is proposed, based on the inter‐organisational relationships paradigm. A number of case studies are presented which examine the role of electronic intermediaries at the buyer‐supplier interface. It is shown how the inter‐organisational relationships paradigm is an effective means of evaluating the buyer‐supplier interface in an electronic B2B environment. The application of the framework is discussed in relation to the three case studies and the implications for practitioners are highlighted.

Longitudinal Evaluation of Innovation Implementation in Smes

Purpose – The aim of this paper is to explore the application of a process of innovation within a small to medium‐sized enterprise (SME) case study organisation over a six‐year period, leading to improved understanding for further application and development.Design/methodology/approach – The development of the process of innovation at the case organisation is examined using a case study methodology combining quantitative and qualitative data gathered over the longitudinal period of the study.Findings – The findings show that innovation implementation in the SME requires ongoing effort, commitment and understanding beyond that of continuous improvement. Moreover, different groupings within the SME had differing perceptions of the value and effectiveness of the innovation process. The findings indicate that innovation must be implemented using a broad range of perspectives and interventions.Originality/value – There is a paucity of studies on the longitudinal implementation of innovation, especially amongst...

Predicting purchasing performance: The role of supplier development programs

Abstract To examine the role of supplier development and its related elements in the context of purchasing performance from a buying firm’s perspective, a survey was conducted of companies in the electronics industry in Hong Kong. Using factor analysis, seven factors were identified relevant to supplier development activities. These elements include: long-term strategic goals, effective communications, partnership strategy, top management support, supplier evaluation, direct supplier development and perception of supplier’s strategic objective. Spearman correlation analysis indicated that all the supplier development elements are positively and significantly correlated to the perceived purchasing performance. From the results of regression analysis, two factors, direct supplier development and supplier’s strategic objectives proved to be significant predictors of purchasing performance.