Supplier Performance Management in Context of Size and Sector Characteristics of Enterprises
Abstract
Purpose: The paper deals with the differences of supplier performance management characteristics by different size of the enterprises and sectors of industry.
Methodology/Approach: The research is based on a questionnaire survey carried out in 2016-2019 in 366 enterprises. Four hypotheses were formulated, focused on supplier selection preferences, frequency of supply evaluation, providing feedback to the suppliers about their performance and quality control. The results are analyzed by the tests of Chi-square statistics.
Findings: The results show that the enterprises differ in the criteria of the selection of the supplier, frequency of supply evaluation and providing feedback to the suppliers about their performance according to their sector industry. In terms of the size of the enterprises, differences were found only in the evaluation of suppliers and evaluation feedback. Enterprises did not differ in quality control of the deliveries.
Research Limitation/implication: The results show that quality is the most evaluated criterion in the selection of the suppliers. In the future, the importance of other environmental and Industry 4.0 criteria will grow. It is recommended combining supplier evaluation and reviews with the feedback to the suppliers to improve the performance of the suppliers.
Originality/Value of paper: The study compares the enterprises in terms of their size and industries in the area of supplier performance management characteristics. These criteria are often not mentioned nor compared in other publications.References
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Araz, C. and Ozkarahan, I., 2007. Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International Journal of Production Economics, [e-journal] 106(2), pp.585-606. DOI: 10.1016/j.ijpe.2006.08.008.
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Giunipero, L.C., 1990. Motivating and Monitoring JIT Supplier Performance. Journal of Purchasing and Materials Management, [e-journal] 26(3), pp.19-24. DOI: 10.1111/j.1745-493X.1990.tb00508.x.
Gordon, S.R., 2008. Supplier evaluation and performance excellence : a guide to meaningful metrics and successful results. Ft. Lauderdale, FL: J. Ross Pub.
Ho, W., Xu, X.W. and Dey, P.K., 2010. Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, [e-journal] 202(1), pp.16-24. DOI: 10.1016/j.ejor.2009.05.009.
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Kar, A.K., 2014. Literature Review of Supplier Selection Criteria. Business Frontiers, [e-journal] 8(1), pp.1-10. DOI: 10.13140/2.1.1503.3924.
Lima, F.R. and Carpinetti, L.C.R., 2016. Combining SCOR (R) model and fuzzy TOPSIS for supplier evaluation and management. International Journal of Production Economics, [e-journal] 174, pp.128-141. DOI: 10.1016/j.ijpe.2016.01.023.
Luthra, S., Govindan, K., Kannan, D., Mangla, S.K. and Garg, C.P., 2017. An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, [e-journal] 140, pp.1686-1698. DOI: 10.1016/j.jclepro.2016.09.078.
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Simpson, P.M., Siguaw, J.A. and White, S.C., 2002. Measuring the Performance of Suppliers: An Analysis of Evaluation Processes. Journal of Supply Chain Management, [e-journal] 38(4), pp.29-41. DOI: 10.1111/j.1745-493X.2002.tb00118.x.
Sonmez, M., 2006. A review and critique of supplier selection process and practices. Loughborough University, Business School. Available at: < https://repository.lboro.ac.uk/ndownloader/files/17121305/1 > [Accessed 19 January 2020].
Souliotis, A., Giazitzi, K. and Boskou, G., 2017. Benchmarking between vegetable suppliers in Greece. Benchmarking-an International Journal, [e-journal] 24(6), pp.1649-1662. DOI: 10.1108/bij-05-2016-0071.
Su, J. and Gargeya, V.B., 2016. Supplier selection in small- and medium-sized firms The case of the US textile and apparel industry. American Journal of Business, [e-journal] 31(4), pp.166-186. DOI: 10.1108/ajb-12-2015-0037.
Tahriri, F., Osman, M.R., Ali, A. and Yusuff, R.M., 2008. A review of supplier selection methods in manufacturing industries. Suranaree Journal of Science and Technology, 15(3), pp.201-208.
Tan, K.C., Lyman, S.B. and Wisner, J.D., 2002. Supply chain management: a strategic perspective. International Journal of Operations & Production Management, [e-journal] 22(5-6), pp.614-631. DOI: 10.1108/01443570210427659.
Thanaraksakul, W. and Phruksaphanrat, B., 2009. Supplier Evaluation Framework Based on Balanced Scorecard with Integrated Corporate Social Responsibility Perspective. In: IAENG (International Association of Engineers), IMECS 2009 International Multi-Conference of Engineers and Computer Scientists. Hong Kong, Hong-Kong, 18-20 May 2009. pp.1929-1934.
Vanecek, D., 2013. The approach of small and medium sized enterprises to process management. Acta Universitatis Bohemiae Meridionales, [e-journal] 16(1), pp.25-34.
Vrchota, J. and Pech, M., 2019. Readiness of Enterprises in Czech Republic to Implement Industry 4.0: Index of Industry 4.0. Applied Sciences, [e-journal] 9(24), pp.1-25. DOI: 10.3390/app9245405.
Watts, Ch.A. and Hahn, Ch.K. 1993. Supplier Development Programs: An Empirical Analysis. International Journal of Purchasing and Materials Management, [e-journal] 29(1), pp.10-17. DOI: 10.1111/j.1745-493X.1993.tb00002.x.
Weber, C.A., Current, J.R. and Benton, W.C., 1991. Vendor selection criteria and methods. European Journal of Operational Research, [e-journal] 50(1), pp.2-18. DOI: 10.1016/0377-2217(91)90033-R.
Yadav, V., Sharma, M.K. and Singh, S., 2018. Intelligent evaluation of suppliers using extent fuzzy TOPSIS method: A case study of an Indian manufacturing SME. Benchmarking-an International Journal, [e-journal] 25(1), pp.259-279. DOI: 10.1108/bij-07-2016-0114.
Yildiz, A. and Yayla, A.Y., 2015. Multi-criteria decision-making methods for supplier selection: A literature review. South African Journal of Industrial Engineering, [e-journal] 26, pp.158-177. DOI: 10.7166/26-2-1010.
Zeydan, M., Colpan, C. and Cobanoglu, C., 2011. A combined methodology for supplier selection and performance evaluation. Expert Systems with Applications, [e-journal] 38(3), pp.2741-2751. DOI: 10.1016/j.eswa.2010.08.064.
Araz, C. and Ozkarahan, I., 2007. Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International Journal of Production Economics, [e-journal] 106(2), pp.585-606. DOI: 10.1016/j.ijpe.2006.08.008.
Deshmukh, A.J. and Chaudhari, A.A., 2011. A Review for Supplier Selection Criteria and Methods. In: K. Shah, V.R.L. Gorty and A. Phirke, eds. 2011. Technology Systems and Management. Berlin, Heidelberg: Springer. pp.283-291. DOI: 10.1007/978-3-642-20209-4_41.
Dickson, G.W., 1966. An Analysis Of Vendor Selection Systems And Decisions. Journal of Purchasing, [e-journal] 2(1), pp.5-17. DOI: 10.1111/j.1745-493X.1966.tb00818.x.
Ghadimi, P., Azadnia, A.H., Heavey, C., Dolgui, A. and Can, B., 2016. A review on the buyer-supplier dyad relationships in sustainable procurement context: past, present and future. International Journal of Production Research, [e-journal] 54(5), pp.1443-1462. DOI: 10.1080/00207543.2015.1079341.
Giunipero, L.C., 1990. Motivating and Monitoring JIT Supplier Performance. Journal of Purchasing and Materials Management, [e-journal] 26(3), pp.19-24. DOI: 10.1111/j.1745-493X.1990.tb00508.x.
Gordon, S.R., 2008. Supplier evaluation and performance excellence : a guide to meaningful metrics and successful results. Ft. Lauderdale, FL: J. Ross Pub.
Ho, W., Xu, X.W. and Dey, P.K., 2010. Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, [e-journal] 202(1), pp.16-24. DOI: 10.1016/j.ejor.2009.05.009.
ISO, 2015. The ISO 9001:2015 Quality management systems - Requirements. Geneva: ISO.
Jain, P.L., 2001. Quality Control and Total Quality Management. New York: McGraw-Hill Education.
Kar, A.K., 2014. Literature Review of Supplier Selection Criteria. Business Frontiers, [e-journal] 8(1), pp.1-10. DOI: 10.13140/2.1.1503.3924.
Lima, F.R. and Carpinetti, L.C.R., 2016. Combining SCOR (R) model and fuzzy TOPSIS for supplier evaluation and management. International Journal of Production Economics, [e-journal] 174, pp.128-141. DOI: 10.1016/j.ijpe.2016.01.023.
Luthra, S., Govindan, K., Kannan, D., Mangla, S.K. and Garg, C.P., 2017. An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, [e-journal] 140, pp.1686-1698. DOI: 10.1016/j.jclepro.2016.09.078.
Monczka, R.M., Handfield, R., Giunipero, L. and Patterson, J., 2015. Purchasing and Supply Chain Management. Cincinnati, Ohio: South-Western College Learning.
Mukherjee, P.N., 2006. Total Quality Management. New Delphi: PHI Learning.
Mwadulo, M.W. and Munialo, S.W., 2019. Supplier evaluation and Selection. A review. Journal of Computer & Information Technology, [e-journal] 10(1), pp.1-6. DOI: 10.22147/jucit/100101.
Pal, O., Gupta, A.K. and Garg, R.K., 2013. Supplier Selection Criteria and Methods in Supply Chains: A Review. Zenodo, [e-journal] (Sep), pp.1-7. DOI: 10.5281/zenodo.1088140.
Parmenter, D., 2010. Key performance indicator: Developing, implementing, and using winning KPIs. 2nd edition. New Jersey: John Wiley & Sons.
Pearson, J.N. and Ellram, L.M., 1995. Supplier selection and evaluation in small versus large electronics firms. Journal of Small Business Management, [e-journal] 33(4), pp.53-65.
Pernica, P., 2004. Logistika pro 21. století (Supply Chain Management). 3. díl. Praha: Radix.
Prahinski, C. and Benton, W.C., 2004. Supplier evaluations: communication strategies to improve supplier performance. Journal of Operations Management, [e-journal] 22(1), pp.39-62. DOI: 10.1016/j.jom.2003.12.005.
Ramlan, R., Abu Bakar, E., Mahmud, F. and Ng, H.K., 2016. The Ideal Criteria of Supplier Selection for SMEs Food Processing Industry. In: T. Deaconescu and A. Deaconescu, eds., 2016 3rd International Conference on Manufacturing and Industrial Technologies. Istanbul, Turkey, 25-27 May 2016. Cedex A: EDP Sciences. pp.1-5. DOI: 10.1051/matecconf/20167005006.
Shalygin, M.G., 2018. Method of Supplier Selection by Means of Correlation of Quality and Cost Characteristics of Products. Quality Innovation Prosperity, [e-journal] 22(3), pp.27-35. DOI: 10.12776/QIP.V22I3.1189.
Simpson, P.M., Siguaw, J.A. and White, S.C., 2002. Measuring the Performance of Suppliers: An Analysis of Evaluation Processes. Journal of Supply Chain Management, [e-journal] 38(4), pp.29-41. DOI: 10.1111/j.1745-493X.2002.tb00118.x.
Sonmez, M., 2006. A review and critique of supplier selection process and practices. Loughborough University, Business School. Available at: < https://repository.lboro.ac.uk/ndownloader/files/17121305/1 > [Accessed 19 January 2020].
Souliotis, A., Giazitzi, K. and Boskou, G., 2017. Benchmarking between vegetable suppliers in Greece. Benchmarking-an International Journal, [e-journal] 24(6), pp.1649-1662. DOI: 10.1108/bij-05-2016-0071.
Su, J. and Gargeya, V.B., 2016. Supplier selection in small- and medium-sized firms The case of the US textile and apparel industry. American Journal of Business, [e-journal] 31(4), pp.166-186. DOI: 10.1108/ajb-12-2015-0037.
Tahriri, F., Osman, M.R., Ali, A. and Yusuff, R.M., 2008. A review of supplier selection methods in manufacturing industries. Suranaree Journal of Science and Technology, 15(3), pp.201-208.
Tan, K.C., Lyman, S.B. and Wisner, J.D., 2002. Supply chain management: a strategic perspective. International Journal of Operations & Production Management, [e-journal] 22(5-6), pp.614-631. DOI: 10.1108/01443570210427659.
Thanaraksakul, W. and Phruksaphanrat, B., 2009. Supplier Evaluation Framework Based on Balanced Scorecard with Integrated Corporate Social Responsibility Perspective. In: IAENG (International Association of Engineers), IMECS 2009 International Multi-Conference of Engineers and Computer Scientists. Hong Kong, Hong-Kong, 18-20 May 2009. pp.1929-1934.
Vanecek, D., 2013. The approach of small and medium sized enterprises to process management. Acta Universitatis Bohemiae Meridionales, [e-journal] 16(1), pp.25-34.
Vrchota, J. and Pech, M., 2019. Readiness of Enterprises in Czech Republic to Implement Industry 4.0: Index of Industry 4.0. Applied Sciences, [e-journal] 9(24), pp.1-25. DOI: 10.3390/app9245405.
Watts, Ch.A. and Hahn, Ch.K. 1993. Supplier Development Programs: An Empirical Analysis. International Journal of Purchasing and Materials Management, [e-journal] 29(1), pp.10-17. DOI: 10.1111/j.1745-493X.1993.tb00002.x.
Weber, C.A., Current, J.R. and Benton, W.C., 1991. Vendor selection criteria and methods. European Journal of Operational Research, [e-journal] 50(1), pp.2-18. DOI: 10.1016/0377-2217(91)90033-R.
Yadav, V., Sharma, M.K. and Singh, S., 2018. Intelligent evaluation of suppliers using extent fuzzy TOPSIS method: A case study of an Indian manufacturing SME. Benchmarking-an International Journal, [e-journal] 25(1), pp.259-279. DOI: 10.1108/bij-07-2016-0114.
Yildiz, A. and Yayla, A.Y., 2015. Multi-criteria decision-making methods for supplier selection: A literature review. South African Journal of Industrial Engineering, [e-journal] 26, pp.158-177. DOI: 10.7166/26-2-1010.
Zeydan, M., Colpan, C. and Cobanoglu, C., 2011. A combined methodology for supplier selection and performance evaluation. Expert Systems with Applications, [e-journal] 38(3), pp.2741-2751. DOI: 10.1016/j.eswa.2010.08.064.
Authors
Pech, M., & Vaněček, D. (2020). Supplier Performance Management in Context of Size and Sector Characteristics of Enterprises. Quality Innovation Prosperity, 24(1), 88–103. https://doi.org/10.12776/qip.v24i1.1407
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