S.C. Lenny Koh

The impact of supply chain management practices on performance of SMEs

Purpose – The purpose of this study is to determine the underlying dimensions of supply chain management (SCM) practices and to empirically test a framework identifying the relationships among SCM practices, operational performance and SCM‐related organizational performance with special emphasis on small and medium size enterprises (SMEs) in Turkey.Design/methodology/approach – Data for the study were collected from a sample of 203 manufacturing SMEs operating in the manufacture of fabricated metal products and general purpose machinery (NACE codes 28 and 29) within the city of Istanbul in Turkey. The research framework was tested using partial least squares method, which is a variance‐based structural equation modeling approach.Findings – Based on exploratory factor analysis (EFA), SCM practices were grouped in two factors: outsourcing and multi‐suppliers (OMS), and strategic collaboration and lean practices (SCLP). The results indicate that both factors of SCLP and OMS have direct positive and significa...

An application of data envelopment analytic hierarchy process for supplier selection : a case study of BEKO in Turkey

This paper aims to apply a hybrid method of supplier selection to a well-known Turkish company operating in the appliance industry. The data envelopment analytic hierarchy process (DEAHP) methodology developed by Ramanathan, R., (Data envelopment analysis for weight derivation and aggregation in the analytic hierarchy process. Computers and Operations Research, 2006, 33, 1289–1307) was chosen as the survey method. In this method, the data envelopment analysis (DEA) approach is embedded into analytic hierarchy process (AHP) methodology. This research concluded that the DEAHP method outperforms the AHP method for supplier selection despite the findings that the AHP model suggested supplier 1 to be the best supplier, contradicting the suggestion made by the DEAHP model and the real action taken by BEKO in selecting supplier 2. These findings imply that DEAHP criteria reflect closer to the real optimum of the decision made. Drawing on a real case our study has supported Ramanathans (2006) work confirming the view that the DEAHP method provides a better decision than the AHP method for supplier selection. Because the DEAHP model is relatively more cumbersome to apply, its application will be more appropriate for high-value components where stringent purchasing criteria are required. In contrast, AHP would remain to be an appropriate approach for relatively lower value components (C class). The novelty of this research lies in the application of a hybrid approach to a real industry case–the DEAHP method for supplier selection, where little has been done on this subject. This study has dealt with one of the most important subjects in supply chain management providing a better decision for supplier selection using appropriate quantitative approaches.

TQM and market orientation's impact on SMEs' performance

Purpose – The principal aim of this study is to determine the impact of market orientation (MO) and implementation of total quality management (TQM) on organizational performance of SMEs.Design/methodology/approach – Based on theoretical considerations, a model is proposed linking the MO and TQM constructs to the organizational performance construct. Exploratory and confirmatory factor analyses empirically verified and validated the underlying dimensions of MO, TQM and organizational performance. Structural equation modeling was employed to test the model drawing on a sample of 141 SMEs operating in the Turkish textile industry.Findings – Data analysis reveals that, while MO has a strong and positive impact on the extent of TQM implementation, it has no significant impact on organizational performance. Similarly, a strong and positive relationship was noted between the level of TQM implementation and organizational performance. It has also been found that the MO has a positive and significant impact on or...

Hybrid analytical hierarchy process model for supplier selection

Purpose – This paper aims to propose a new approach called “analytical hierarchy process weighted fuzzy linear programming model (AHP‐FLP)” for supplier selection.Design/methodology/approach – A hybrid method of supplier selection, AHP‐FLP is applied to a real industry case. The weights of the various criteria, taken as local weights from a given judgment matrix, are calculated using analytical hierarchy process (AHP) that are also considered as the weights of the fuzzy linear programming model. This new model is compared with the classical AHP method.Findings – This study concluded that the AHP‐FLP method outperforms the AHP method for supplier selection with respect to restricted supplier selection criteria. Drawing on a real case, Supplier 1 was identified to be the best supplier through the AHP model under no restrictions, which contradicts the finding that Supplier 2 was selected as the best supplier by the AHP‐FLP model subject to constraints.Research limitations/implications – More research is defi...

Greener supplier selection: state of the art and some empirical evidence

In recent years, an increasing environmental awareness has favoured the emergence of the new green supply chain paradigm; thus, also in the supplier selection problem, green criteria were incorporated. The aim of this paper is twofold. First, a careful scrutiny of the papers appearing in international scientific journals in recent years on the greener supplier selection problem is provided, highlighting utilised methodologies and current issues; second, a verification of the penetration of environmental and green criteria for the supplier selection in corporate practice is performed, using a questionnaire survey targeting the top 100 manufacturing companies operating in South Yorkshire (UK) and two in-depth interviews at large MNE firms operating in complex industries. Results show that, while interest in the literature is growing, there is little empirical evidence of the transfer of these applications into the real world, highlighting a persistent dichotomy between theory and practice. The reasons for this dichotomy are also investigated.

Decarbonising product supply chains: design and development of an integrated evidence-based decision support system – the supply chain environmental analysis tool (SCEnAT)

Based upon an increasing academic and business interest in greening the industrial supply chains, this paper establishes the need for a state-of-the-art decision support system (DSS) for carbon emissions accounting and management, mainly across the product supply chains by identifying methodological shortcomings in existing tools, and proposing a supply chain (SC) framework which provide businesses with a holistic understanding of their supply chains and ensuring partners within supply chain collaborative networks have a shared understanding of their emissions. It describes the design and development of a DSS now known as supply chain environmental analysis tool (SCEnAT) in detail, putting its unique and innovative features into a comparative perspective vis-à-vis existing tools and software of different types. The methodological framework used to design and develop SCEnAT integrates different individual techniques/methods of supply chain (SC) mapping, SC carbon accounting, SC interventions and SC interventions evaluation on a range of key performance indicators (KPIs). These individual methods have been used and applied innovatively to the challenge of designing SCEnAT within the desired framework. Finally, we demonstrate the application of SCEnAT, especially the advantage of using a robust carbon accounting methodology, to a SC case study. The SCEnAT framework pushes the theoretical boundary by addressing the problems of intra-organisational approach in decision making for lowering carbon along the supply chain; with an open innovation, cutting edge, hybridised framework that considers the supply chain as a whole in co-decision making for lowering carbon along the supply chain with the most robust methodology of hybrid life cycle analysis (LCA) that considers direct and indirect emissions and interventional performance evaluation for low carbon technology investment and business case building in order to adapt and mitigate climate change problems. This research has implications for future sustainability research in SC, decisions science, management theory, practice and policy.

Measuring performance within the supply chain of a large scale project

Purpose – The purpose of this paper is to explore the performance measurement methodology used by a real case company, namely Vanderlande Industries Ltd, for cost and progress capture for in‐house production, resale material and third party supplied material, in an effort to measure performance of the supply chain of a large scale project – the €6bn London Heathrow Airport Terminal 5 construction project.Design/methodology/approach – The case study approach was adopted, which includes ethnography. This research is not about testing a theory; it is about gaining insight to the actual functioning and supply chain performance measuring of a large‐scale project. In that sense, the experiences reported could be shared with those dealing with performance measurement of large‐scale projects.Findings – Eight key areas of concerns are found relating to supply chain performance measurement of a large‐scale project: performance measurement requirements, with forecasting and progress reporting not owned by suppliers;...

Benchmarking carbon emissions performance in supply chains

Purpose – The paper aims to develop a benchmarking framework to address issues such as supply chain complexity and visibility, geographical differences and non-standardized data, ensuring that the entire supply chain environmental impact (in terms of carbon) and resource use for all tiers, including domestic and import flows, are evaluated. Benchmarking has become an important issue in supply chain management practice. However, challenges such as supply chain complexity and visibility, geographical differences and non-standardized data have limited the development of approaches for evaluating performances of product supply chains. This industry-level benchmarking approach ensures that individual firms can compare their carbon emissions against other similarly structured firms. Design/methodology/approach – Benchmarking has become an important issue in supply chain management practice. However, challenges such as supply chain complexity and visibility, geographical differences and non-standardized data hav...

Exploring the challenges in implementing supplier environmental performance measurement models: a case study

This study aims to explore the challenges associated with implementing supplier environmental performance measurement models in context of a global supply chain. After a thorough literature review on the topic, a case study-based research methodology is adopted to investigate the real-life perspective of the issues encountered while evaluating the supplier performance in a sustainable supply chain. An in-depth study of one of the biggest fast-moving consumer goods companies in UK is discussed and analysed in this paper. Findings of this research will pave the way for developing a robust, efficient and usable environmental performance measurement framework in a supply chain.

An efficiency comparison of supply chain management and information systems practices: a study of Turkish and Bulgarian small- and medium-sized enterprises in food products and beverages

Using data envelopment analysis (DEA) this study attempts to compare the relative efficiencies of supply chain management (SCM) and information system (IS) practices of small- and medium-sized enterprises (SMEs) operating in food products and beverages in two neighbouring South East European countries, Turkey and Bulgaria. While there exist some significant differences between the efficiency level of SCM practices and the country of origin of the sample firms, no significant differences were found between the efficiency levels of both IS practices and the composite variable of SCM&IS practices, and the country of origin of the SMEs. Turkish SMEs tend to achieve higher efficiency level with respect to the implementation of SCM practices. There are also significant differences in returns to scale for each group of input variables with respect to the country of origin of the SMEs. The analysis of the improvement potential of inputs indicates that Bulgarian SMEs place more emphasis on managing most of the SCM practices to enhance their SCM efficiency. However, no statistically significant differences in general were noted between both groups of firms with regard to the level of resources and efforts exerted on IS and SCM and IS practices. In terms of the overall average of output deficits, Turkish SMEs were found to have significantly higher output deficits than Bulgarian SMEs with respect to all three groups of input variables.