Buyer Supplier Relationship

Establishing, developing and maintaining successful buyer-seller relationships constitutes a critical strategic skill in the international travel trade. After conceptualizing the importance of quality distributor-supplier networks that make prepackaged tours possible, this study explores ...

This paper presents an empirical study aimed at investigating the adoption of manufacturing intangible technologies in small manufacturing supplying firms that are located in late developing areas. Manufacturing intangible technologies are more or less formalised practices necessary to make hard technologies work, and to improve manufacturing process management and control. A survey was carried on collecting data from a sample including 291 small manufacturing supplying firms located in Southern Italy. Findings show that managers in a large number of firms have acquired awareness that the adoption of hard tangible technologies alone cannot lead to higher performance, but a change of the manufacturing system organisation or working routines with the adoption of soft technologies is often a necessary condition to preserve or enhance competitiveness. These firms – even coming up against obstacles many times – have been capable to translate their management awareness into practice, by introducing a number of identifiable intangible technologies in the manufacturing environment of their
organisations. Findings also reveal that industry type affects the adoption of intangible manufacturing technologies.

Social exchange theory is used to gain a better understanding of the relationship between a buyer and a supplier that is characterized by lock-in situations. We begin by reviewing the theoretical foundations of social exchange theory. Next, we use an illustrative multinational business example from a Danish Business Group to demonstrate the complexities of the lock-in situation. Conjectures related to lock-in behaviors are initially developed and then examined by means of a game-theoretic model. The analysis provides a basis for the ...

Eamonn is on the academic staff of the National Institute of Technology Management (NITM) in University College Dublin (UCD), and is active in teaching, research and the business development activities of the Institute. Prior to joining UCD, he was Engineering Director for Bristol Myers Squibb, and was responsible for the design, installation and maintenance of process plants for developing and manufacturing anti-cancer drugs. He also worked as a consultant advising major multinationals and government agencies in asset management and procurement process improvement.

Supplier involvement in product development has been a widely discussed theme in recent years. Sometimes, one ‘best method’ for involvement, derived from studies of one particular industrial context, has been suggested. In this article, however, various forms for coordinating such involvement are distinguished, based on a study of six different product development projects. Three main approaches are formulated and discussed: project integration coordination, disconnected sub-project coordination, and ad hoc coordination. Based on the empirical study and the literature, the drivers of different types of supplier coordination are discussed. Several managerial implications are suggested related to the need to differentiate interorganizational coordination, not only from project to project but also throughout a project. The importance of taking into account short-term, project-based drivers as well as long-term strategic objectives of supplier coordination is also discussed.

The aim of this paper is to develop a new approach to supplier segmentation that considers the various variables used in existing literature to segment suppliers. A literature review reveals a serious problem from a management perspective. The problem is that many different supplier segmentation methods have been proposed in the last three decades, each of which uses different segmentation variables and hence results in different segments. An overarching supplier segmentation method, considering various segmentation variables, is lacking. Based on an extensive literature review, we have analyzed the current methods and we conclude that the literature on supplier segmentation can be divided into three different schools of thoughts. By clearly identifying the deficiencies of the existing theory on supplier segmentation, we developed a new approach. As the basis for this new approach, we developed three requirements to make an overarching approach to supplier segmentation. Firstly, supplier segmentation should be based on their long-term potential, which we propose to assess in terms of supplier capabilities and willingness to cooperate. Secondly, other functional areas beyond purchasing have to be considered when segmenting suppliers. Thirdly, supplier segmentation should be viewed as a step in a longitudinal process that includes selecting suppliers, segmenting them, managing the relationship with them and actively developing their role over time. We illustrate the proposed approach by segmenting the suppliers of a company in the food industry.

The social business paradigm encapsulates the significance of sustainability to effectively address social and environmental problems. However, there exist a limited number of research papers conceptualizing management strategies on how social businesses can effectively remain sustainable. In consequence, this paper addresses a gap in the literature and proposes the utilization of supplier relationships as an instrument to cultivate social and environmental sustainability in a social business. Furthermore, the authors of this paper redefine the Kraljic Matrix framework to facilitate its utilization in the social business model and reveal the relationship strategies social businesses can pursue with their suppliers in order to be sustainable. Hence, this research paper fulfils an important need to define strategies to cultivate sustainability in a social business and provides powerful insights encompassing the milieu of supply chain management.

Negli ultimi anni il brand è entrato a pieno titolo tra gli strumenti di marketing dell'impresa operante nei mercati business-to-business. Tuttavia ad oggi poco si sa sulle strategie con le quali l'impresa dovrebbe gestire il brand in tali mercati. Si tratta di decisioni molto complesse che devono tenere conto delle peculiarità del business-to-business, non potendo semplicemente mutuare logiche e strumenti dal branding nei mercati business-to-consumer.Il presente lavoro si propone di fare luce su questo tema cercando di chiarire come l'impresa dovrebbe definire e gestire il proprio mix di strategie di BtoB branding in funzione delle specificità dei mercati (tipi di clienti e di supply chain) in cui opera. L'analisi è arricchita dallo studio in profondità di alcuni casi di imprese con una consolidata esperienza nelle attività di BtoB branding in Italia.

The growing specialization of firms and the reinforcement of vertical disintegration have led to an increasing reliance on purchasing and supply management. This means that an increasing proportion of value is created outside the boundaries of the firm, namely by suppliers. In this context, the paper aims to relate the configuration of the bonds companies establish with their suppliers to the process of value creation. The paper furthers our understanding of buyer-supplier relationships as mechanisms for the coordination and development of capabilities on both sides of the dyad. Evidence was found that relationships affect not only the access and exploration of suppliers' resources, but also the perception the buying firm has about their capabilities which is likely to condition the potential for joint value creation. The main contribution of the paper is that value co-creation involving suppliers must be regarded as a strategic option which depends on several conditions. This research puts in evidence two of these conditions: suppliers' capabilities and the way the buyer-seller relationships are configured.

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This paper proposes to unravel what digital technologies have to offer using proven academic models, in order to make a distinction between what may be considered as evolution or disruption in Procurement. The evolution in value creation through process digitization is first of all quantified according to purchasing maturity, and two disruptions are then analyzed: the ongoing platformization of purchases and the upcoming use of Big Data and Artificial Intelligence. At each stage, the operational consequences for the change management to be effected by CPOs are analyzed and discussed. Four tracks for future research in that direction are proposed.

Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen's (1988) ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better.

The internet of things (IoT) is transforming the way consumers shop at stores, how shoppers collect information, and how they take purchasing decisions. The way manufacturers and retailers respond to the digital enabled shopper is key to ensure positive implications for revenues and profits, ensuring that the collaborative relationship focus on providing shoppers with a better customer experience. Category management is at the center of the manufacturer-retailer relationship, urging for a transformational turmoil that enables a prompt response to the digital enabled shopper. This chapter discusses the implications of the new digital empowered shopper for the traditional category management demand-side aspects underlying the need to enhance business results by focusing on higher collaboration and automation.

Many researchers have investigated the dynamics of buyer-supplier relationships and have, in general, posited the importance of long-term, cooperative relationships. However, the relationship between suppliers (i.e., supplier-supplier relationship) and its potential impact on the buyer-supplier relationship have not yet been considered. This research addresses a void in the literature, especially given that many buyers now work with a smaller supplier base and deliberately try to foster certain types of supplier-supplier relationships. Building on the existing buyer-supplier and strategic alliance literature, we propose three archetypes of supplier-supplier relationships. This research further illustrates the strategic role of the buying firm in structuring these relationships and explores the managerial implications of different types of supplier-supplier relationships from the perspectives of both the buying firm and its suppliers.

Purpose: In successful purchasing relationships, effective communication is a key factor. The purpose of this paper is to explore if the choice of communication media is affected by different stages in the relationship development process and by different purchasing contexts: product and service purchasing. Design/methodology/approach: The study initially reviews the literature on interorganizational communication and purchasing relationships. In order to explore the research question, data was gathered through semi-structured in-depth interviews with purchasing managers, buyers and their suppliers in three product and three service purchasing relationships Findings: The study identifies a relationship development framework that influences the communication media selection in two purchasing contexts.

The opportunities virtual reality provides for B2B marketing are increasingly recognized by the trade press in discussions of interesting examples from early adopters like GE, Siemens and Airbus. However, while there is growing recognition of its promise and potential, the specific impact of virtual reality on B2B marketing remains an unexplored research area. This paper provides an early theoretical consideration of the topic by developing a framework and offering propositions that describe the impact of virtual reality on B2B buyer perceptions of value-in-use during the post-purchase stage of the buyer's purchase journey. The paper also considers the moderating impact of several aspects of buyer-supplier relationships, including knowledge complexity, social complexity and task complexity, on virtual reality's contribution to value-in-use perceptions. The discussion provides B2B marketing scholars with several directions for future research and makes several recommendations for B2B marketers interested in leveraging the opportunities presented by virtual reality.

Achieving and maintaining competitive advantage in an increasingly unpredictable and changeable business climate under the new rules of global competition and sustainable development became the major challenges facing the worldwide companies' management during the last decades. Our paper aims to reveal the developments of managerial thought and emerging practices that address these challenges, essentially based on the new relational view of business and the supply chain logic. Accordingly, the paper synthesizes the results of an extensive documentary research of the international literature that allowed us observing how this logic evolved and driven to the so called Supply Chain Management revolution. Also it's point out the growing interests at the world level in this field covering the complex problems of integrating the key business processes and managing them along the supply chain, with emphasis on its current shaping as a new multidisciplinary study field.

In the strategic procurement management literature two general forms of purchasing arrangement feature--'partnership sourcing' and 'competition'. Usually partnership sourcing is said to be superior because it leads to long-term collaboration based on trust between buyer and supplier. One product is a reduction of the supplier base with firms perhaps relying on a single source of supply or a small number of preferred suppliers. The paper reconsiders procurement methods in terms of a continuum using the economics of transaction costs. The paper then illustrates the economic issues discussed by considering procurement in the defence sector. Defence is taken as an example of public procurement with experience and opportunities for competition, partnership sourcing and long-term buyer-supplier relationships. The paper concludes that the case for partnership sourcing over competition is not clear cut.

Although the idea that buyer-supplier partnerships can yield considerable benefits to firms is largely diffused among researchers and practitioners, the approach adopted in this paper is that no ''one best way'' exists in buyer-supplier relationships, but rather a ''best way'' for each specific exchange context. Hence, this paper proposes a contingency model for shaping and managing buyer-supplier relationships in manufacturing contexts. In order to test the model, an empirical study was performed on a sample of 45 buyer-supplier relationships within the Italian white goods industry. A three-dimensional performance indicator was computed to compare supplier performance achieved within relations matching the model's suggestions with those set differently. The results strongly suggest that suppliers involved in relationships set accordingly to the contingency model are likely to enjoy superior performance. r

Purpose
Previous research has shown that business-to-business (B2B) brand image has positive effects on customer loyalty. However, the results have been inconsistent because they have highlighted that B2B brand image has either direct or mediated effects on loyalty. Drawing on the framework of service transition, this study develops and tests a model that reconciles previous findings. This model suggests that goods-related and service-related B2B brand images coexist in customers’ perceptions and impact customer loyalty in different ways.

Design/methodology/approach
A model was developed and estimated using covariance-based structural equation modeling. The data used in the analysis were collected through a survey in the Italian healthcare industry, focusing on the relationship between hearing aid manufacturers and audiologists.

Findings
Both goods-related and service-related B2B brand images have positive effects on loyalty. However, while the effects of goods-related image on loyalty are fully mediated by satisfaction, service-related image has both direct and mediated effects on loyalty.

Research limitations/implications
This study reconciles previous work arguing that B2B brand image has either direct or mediated effects on loyalty by focusing on the transition from a goods-oriented logic for branding to service branding. In particular, the analysis focuses on the role of the brand in the co-creation process, suggesting that a service-related brand image reflects the value unfolding over time through co-created experiences. However, additional research needs to be conducted in other industries before the results can be generalized.

Practical implications
The findings provide managers with insights for the co-creation of their B2B brand images. In particular, the results urge managers to integrate the traditional goods-oriented approach to branding with service branding, showing that enriching B2B brand image with service-related aspects will have a direct and positive effect on loyalty. However, brand image cannot be created or changed unilaterally by the firm as it is determined by the customer based on co-creation experiences.

Originality/value
This is the first study to explicitly and separately consider the effects of goods-related and service-related aspects of B2B brand image on loyalty. It also one of the first studies to apply service logic to B2B branding issues.

The growing specialization of firms and the reinforcement of vertical disintegration have led to an increasing reliance on purchasing and supply management. This means that an increasing proportion of value is created outside the boundaries of the firm, namely by suppliers. In this context, the paper aims to relate the configuration of the bonds companies establish with their suppliers to the process of value creation. The paper furthers our understanding of buyer-supplier relationships as mechanisms for the coordination and development of capabilities on both sides of the dyad. Evidence was found that relationships affect not only the access and exploration of suppliers' resources, but also the perception the buying firm has about their capabilities which is likely to condition the potential for joint value creation. The main contribution of the paper is that value co-creation involving suppliers must be regarded as a strategic option which depends on several conditions. This research puts in evidence two of these conditions: suppliers' capabilities and the way the buyer-seller relationships are configured.

Information technology (IT) has long been applied to support the exchange of goods, services and information between organizations. Early on, when interorganizational information systems (IOIS) like EDI systems were introduced, electronic markets emerged for business purchasing. However, it is only with the advent of Internet-based e-procurement systems and business-to-business (B2B) electronic markets that the real opportunities for any-to-any (A2A) online transactions have opened up across space and over time. The extensive connectivity offered by online trading networks creates value by lowering communication and search costs. But this benefit is just one aspect of what is desired by adopting firms. The other aspect is that purchasing firms expect to maintain established long-term relationships with preferred suppliers. As a result, private aggregating and negotiating mechanisms are being adopted for large quantity business supply purchases, while public market mechanisms are more often adopted when firms face uncertain and high variance demand. This paper draws on IS and economics theory to investigate the motivation for the various online business models, and the adoption requirements of purchasing firms, through the examination of a set of mini-cases.

Summary This article presents the findings of an exploratory study into the role of culture in the deployment of purchasing portfolio strategies. Based on a questionnaire that was previously used in The Netherlands, a survey has been conducted among French purchasing professionals. A comparative analysis was performed on portfolio use, levels of buyer's and supplier's dependence and trust and commitment

This study investigates the relationships between U.S. buying firms' supplier development efforts, commitment, social capital accumulation with key suppliers, and buying firm performance. We identify linkages between supply chain management research on supplier development and organization theory research on social capital to consider how buying firm commitment to a long-term relationship, cognitive capital (goals and values), structural capital (information sharing, supplier evaluation, supplier development), and relational capital (length of relationship, buyer dependency, supplier dependency) are related to buying firm performance improvements (cost improvements, and quality, delivery, flexibility improvements). Analysis of buying firms from the U.S. automotive and electronics industries provides support for the theory that buyer commitment and social capital accumulation with key suppliers can improve buying company performance. Moreover, the findings suggest that the relationships of structural and relational capital vary depending on the type of performance improvement considered. #

Despite the growing importance of SCM, the absolute majority of research deals with the management of the tangible, or physical supply chains. This paper explores the application of the SCM service organisations. It proposes a generic framework for conceptualising SCM in the broad service sector, drawing concepts from the extant SCM and Service Management literatures. Considering the significance of Inter-Organisational Relationships (IORs) that are developed with the exchanges of services, empirical research examines the extent by which the relationships that are developed between actors in a service network are affected by the context in which the exchange takes place

The eSourcing Capability Model for Client Organizations (eSCM-CL) is the best practices model that enables client organizations to appraise and improve their capability to foster the development of more effective relationships and to better manage these relationships. (This is a sample file)

Certains fournisseurs sont devenus des ressources essentielles à
l'entreprise. Leur contribution aux objectifs stratégiques ne peut se mesurer
uniquement selon le triptyque coût-qualité-service. C’est particulièrement le cas
dans les interactions complexes, quand le fournisseur est apporteur d’expertise,
en mode projet. Cet article utilise l'expérience des actifs immatériels pour
proposer une approche de mesure de la performance de la relation avec les
fournisseurs clés plus adaptée que les approches classiques de pilotage de leur
potentiel de création de valeur.

Purpose – The customer portfolio and relationship management have been of contemporary interest to the academics and practitioners. This paper aims to systematically analyze the review and critique of this important area and broadly to discuss the customer portfolio theories and their implications in reference to marketing and purchasing perspectives. Design/methodology/approach – The major conceptual contributions in the area of customer portfolio and relationship management have been categorically analyzed in the paper. The paper provides an insight of how marketers interpret and describe companies’ actions and the discussion provides a framework for relationship management, the central tenet of which is to enable managers to invest their resources in the most efficient and effective way. Findings – The review of literature shows that the customer portfolio analysis can provide strategic input to the firm towards developing a successful planning process. The conceptual discussion in the paper on relationship management may lead the strategies in managing the corporate social capital. The alternative models have beendeveloped in thepaper inreference tothe market environment andvalues concepts discussingthe triadicrelationship among the organization, supplier and customer that reflects on the contemporary managerial perspectives. Originality/value – The managerial implications of the discussion presented in the paper would be helpful to plan and create strategies to optimize returns on customer relationship over time. This paper would be of interest to the scholars as well as practitioners engaged in strategic planning of a firm.

Power and interdependence are generally considered to be important concepts for understanding buyer–supplier
relationships. Yet, empiricalresearch on power and interdependence in buyer–supplier relationships is still limited. Power and interdependence issues also play an important role in Kraljic’s portfolio approach, which is increasingly used by purchasing practitioners for managing different supplier relations and developing appropriate purchasing strategies. In this paper, the concepts of power and interdependence have been quantified for each quadrant of the Kraljic portfolio matrix, using data from a comprehensive survey among Dutch purchasing professionals. Several hypotheses have been tested and the findings largely confirm the theoretical expectations. The observed supplier dominance in the strategic quadrant of the Kraljic matrix is a notable finding, which indicates that even satisfactory partnerships are dominated by the supplier. Therefore, the presumed power symmetry of buyer–supplier relationships in the strategic quadrant seems no longer valid

Research on buyer-supplier relationships has emphasized the importance of collaboration and business networks. We aim to study the effects of downstream information on the collaborative buyer-supplier relationship. Downstream information refers to the information a firm obtains from marketing channels, be they wholesalers, distributors or retailers. The approach allows firms to concentrate their efforts on the most relevant sources of information and not on the whole network. Survey data was gathered from the Dutch potted plant and flower industry to test this hypothesis. Our findings demonstrate that collaborative relationships are contingent on downstream information from both the buying perspective (wholesalers) and from the supplying perspective (producers).

La evaluación y selección de proveedores es una actividad constante en las industrias de todos los sectores y este es
un proceso que ha evolucionado ampliamente en relación a las técnicas y los atributos que se integran. Sin embargo, no definir los atributos que se deben de evaluar es un problema complejo, por lo que en este artículo se reporta una revisión de literatura de los años 2009 a 2011 en relación a ello. Se ha encontrado que la calidad es uno de los atributos mas evaluados, al igual que el costo y el tiempo de entrega.

We perceive growing expectations concerning the impact of the purchasing function and the suppliers on overall value creation of a firm. Purchasing is the gateway between the external suppliers and the internal functions creating and delivering value for customers. This shift has incredibly enhanced the importance of the supplier base. While the old arm length collaboration is perfectly suitable for some suppliers others should be treated as close partners. However, an overall framework of Supplier Relationship Management (SRM) integrating such different types of suppliers along the course of the relationship remains desirable. Our research aims to contribute by developing a framework for Supplier Relationship Management. For this purpose we are adapting and applying insights from Customer Relationship Management (CRM) as well as existing findings in supplier management literature. Finally, managerial implications and future research avenues are discussed.

Case study based literature on relationship development presents in-depth information on contextual factors in relationship development. However, little quantitative evidence is available about key aspects of buyer-supplier relationships in each stage of its development, such as the level of trust/commitment, buyer's and supplier's dependence. The study will try to fill this gap by identifying and quantifying these aspects from the buyer's perspective in each development stage. A comprehensive survey among 238 Dutch purchasing professionals provides evidence on how these characteristics of relationships change when relationships develop over time. The results largely confirm the hypotheses, which stem from the extant literature about organizational dependence and trust/commitment. A notable finding is that the buyer perceives to be dependent on the supplier, even in a desirable relationship. Managerial implications are that: (1) industrial marketers should be aware that professional purchasers feel dominated by them, even in relationships that are positively evaluated and therefore desirable in the view of the buyer; and (2) that purchasers should be aware that dependence implies vulnerability, even when the relationship is still developing in an otherwise desirable way.

Asia Floor Wage Alliance (AFWA) held the People Tribunal (PT) for four days, on 21-25 June 2014 in Jakarta. The PT prosecutes cases experienced by workers and unions at Adidas, H & M, Walmart, Nike, and GAP manufacturers. Cases prosecuted were unemployment, corporate dismissal models, illegal employment contracts and gender discrimination, wage inequalities, dismissal of work status changes.

The buyer-supplier relationship is the nexus of the economic partnership of many commercial transactions and is founded upon the reciprocal trust of the two parties that participate in this economic exchange. In this article, we identify how six ethical elements play a key role in framing the buyer-supplier relationship, incorporating a model articulated by Hosmer (The ethics of management, McGraw-Hill, New York, 2008). We explain how trust is a behavior, the relinquishing of personal control in the expectant hope that the other party will honor the duties of a psychological contract. Presenting information about six factors of organizational trustworthiness, we offer insights about the relationship between ethics and trust in the buyer-supplier relationship.

Kraljic's purchasing portfolio approach has inspired many academics to undertake further research into purchasing portfolio models. Refined models typically recommend one purchasing strategy for each portfolio quadrant. Yet, it has been shown that purchasers make a clear distinction between alternative purchasing strategies within each quadrant. The fundamental assumption of portfolio models seems to be that differences in power and dependence between buyers and suppliers exist. Still, little is known about how these concepts influence the choice for a specific purchasing strategy. In this paper, 'relative power' and 'total interdependence' for a number of portfolio-based purchasing strategies have been quantified empirically, using data from a comprehensive survey among Dutch purchasing professionals. The survey data largely confirmed the hypotheses that were deduced from the literature. r

he purpose of the research was to investigate how buyersupplier partnerships affect service delivery of the nongovernmental organizations involved in humanitarian work, a case of World Vision International. Literature review conducted, no specific references were found on partnership theories of humanitarian organizations. Therefore models of partnerships have largely been modified from other related industries, geographical zones and countries, when they were thought to be relevant. As a source material, especially theories from marketing sector were used, as well as many journal articles and researches from international publications. The chosen method for this research was both quantitative and qualitative research. Structured questionnaires were used as survey technique. Interviewees and the respondents were chosen by non-probability sampling. This was an exploratory study that used a small sample with possible geographic biases. This research aspires to social constructionism, where the task is to appreciate what happens in the real world. Results were analysed by SPSS and also by the researcher's interpretations of the gathered data. Finally, conclusions and future research plans were presented. The research sought to get evidence from the investigated literature and empirical findings of this research to support the view that price, past completed work, delivery reliability, personal contact, relationships, partnering, networking and word of mouth communication are seen as crucial issues in buyer-supplier partnerships. As the relationship develops, the buyer starts to feel safe with the supplier, and thus trust is developing. Trust through credibility and security reduces the sacrifices for the buyer and was assumed to be of value to both partners.