Multi‐criteria supply chain performance evaluation

Framework for measurement of supplier satisfaction

Purpose

The purpose of this paper is to design, develop, implement and validate a multi-criteria decision model for measuring supplier satisfaction through a case study.

Design/methodology/approach

A three-stage methodology was used to develop a framework to measure supplier satisfaction. The framework involved factors and Key Performance Indicators (KPIs) from literature and exploratory study. Further, using the framework, a multi-dimensional decision model to calculate Supplier Satisfaction Index was developed. The proposed decision framework was implemented as a real-world case study in an Indian manufacturing organization.

Findings

The study makes two major contributions: first, it develops a framework to measure supplier satisfaction using factors and KPIs suitable to the buyer organization; second, the model developed to calculate supplier satisfaction helps in understanding overall satisfaction of suppliers along with the level of satisfaction of each supplier. The model can also be used to suggest improvements to buyer organizations on specific factors and KPIs under each factor.

Research limitations/implications

Supplier satisfaction plays an important role in multinational companies (MNCs), so the sample of practitioners considered in this study is relevant. However, it is likely that the small sample size of only suppliers and companies selected solely from the Indian manufacturing MNCs may have introduced some bias.

Practical implications

A comprehensive framework for enhancing the relationship with suppliers will be instrumental in deciding, managing and improving the level of supplier satisfaction.

Originality/value

This approach provides purchase managers with the flexibility of selecting factors and KPIs at every level of analysis and also a single index to establish supplier’s satisfaction with a buyer company.

Development of a balanced scorecard-based supplier collaborative performance index

Purpose

The purpose of this paper is to design and develop a balanced scorecard (BSC)-based index for quantifying the suitability of suppliers to mature to the next level of collaboration with the buyer company.

Design/methodology/approach

A BSC-based decision framework was developed using factors and factor indicators affecting collaboration with the supplier, using exploratory research. The proposed decision framework was implemented as a real-world case study in an Indian manufacturing organisation by using the Analytic Hierarchy Process. An 11-step methodology was developed to quantify supplier suitability to mature to the next level of collaboration. This is referred to as the “supplier collaborative performance index” (SCPI).

Findings

The proposed decision-making framework helps quantify the extent of collaboration with each supplier. It serves as an index by using the perspectives that are significant for the strategic performance of the buyer company, the factors that affect the collaboration and their specific factor indicators. The initial results of the implementation of the case study were found to be useful in judging supplier suitability in order to mature in their relationship.

Practical implications

A comprehensive BSC-based framework for enhancing relationships with suppliers, SCPI will be instrumental in deciding, managing and improving the level of collaboration with suppliers in manufacturing companies, depending on priorities.

Originality/value

This approach provides a single index to establish the supplier’s suitability to mature to the next level of collaboration with a buyer company. The higher the value of the Collaboration Index for a supplier, the better is the chance to move to the next level of maturity.

Multi-criteria decision framework for supplier classification in collaborative supply chains

Purpose

– Buyer companies’ engagement with suppliers varies according to their specific business needs. Prior models of supplier classification are based on the dimensions like product specification or criticality of purchase. As the supply chains are embracing collaboration among partners to respond to the dynamic market conditions, it is prudent to study the changes adopted by buyer companies for supplier classification. The paper aims to discuss these issues.

Design/methodology/approach

– This is an exploratory research for identifying the criteria used for supplier classification based on the interviews of practitioners from buyer multinational manufacturing companies operating in India. The content analysis of the subjective responses led to the identification of distinctive criteria.

Findings

– Although, many of the practitioners were unaware of the model per se, they labelled their suppliers as per the types stated in the Kraljic model. They mentioned twenty six criteria for supplier classification; five of which do not have any reference in the extant literature. The degree of presence of these criteria provides a multi-criteria framework for supplier classification that has been further extended based on prior models.

Research limitations/implications

– The exploratory nature of the study, its confinement to Indian milieu and small sample size could limit the generality and exhaustiveness of the findings.

Practical implications

– The framework and its extension can be used by practitioners in assessing and classifying their suppliers for strengthening supply chain collaboration.

Originality/value

– This research unveils five new criteria used by buyer companies for supplier classification. The multi-criteria framework for supplier classification and its extension give new insights into the supplier characteristics significant for supply chain collaboration.

Performance measurement and metrics in supply chains: an exploratory study

Purpose

– The purpose of this paper is to explore the approaches and metrics used to measure supply chain (SC) performance, and to understand the relative perceived importance of such measures.

Design/methodology/approach

– This research is based on empirical data captured through a survey of SC professionals in a variety of business sectors.

Findings

– The research confirms the importance of the balanced scorecard (BSC) approach, with BSC, SCOR and economic value added being the most commonly used tools. Economic metrics dominate, focused on cost and customer service. While social and environmental-related measures are of emerging importance, they appear to be of similar importance to economic metrics only when backed up by a legal obligation.

Research limitations/implications

– The small sample of 51 companies was based on access and the group is not wholly representative of all businesses. Respondents were mainly managers from EU countries involved in procurement, logistics and transport activities. Surveyed companies included manufacturing, automotive, retail, logistics services and wholesaling businesses.

Practical implications

– The common key performance indicators (KPI’s) are identified. These include measures related to: quality, efficiency, responsiveness, health and safety, employees, emission, natural resources utilisation, waste and recycling. Issues that influence the usage of measurement systems as well as the company and SC levels are ranked.

Social implications

– Implementation of a monitoring system and subsequent usage of the collected data may help to reduce negative external impacts on society and the environment.

Originality/value

– The field of SC performance management is still developing, with growing empirical work. Nevertheless this paper is one of the first attempts to carry out such an analysis focused on metrics and their usage. The survey instrument has been tested and can now be applied to other contexts.

The construction of knowledge from the scientific literature about the theme seaport performance evaluation

Purpose

– The purpose of this paper is to know what scientific literature presents about the theme evaluation of seaport performance, thus enabling the construction of knowledge in the researchers and the identification of gaps in the research that will lead to advances in the area from the identification of the characteristics of a portfolio of relevant international publications.

Design/methodology/approach

– From the basic philosophical (constructivism), of the kind strategy (research-action) and the method used for the accomplishment of such strategy (structured process knowledge development process – constructivist (ProKnow-C)) the current research has a qualitative approach.

Findings

– From the analysis of the bibliographic portfolio composed of 23 articles, the main results were: focus of the evaluation of seaport performance is on operational and tactical efficiency rather than on strategic and global performance; the majority of the studies does not relate to the reality experienced by seaport managers due to the limited interaction with these managers, evidencing a distance of the researchers from the object of their research; and performance evaluation was barely used/explored as a tool to support management, only for the sake of evaluation itself.

Research limitations/implications

– The search occurred in the databases Web of Science, Scopus, Proquest, Ebsco, Sciece Direct and Wiley.

Originality/value

– The identification of gaps that might promote advances in this field of knowledge, once the seaport segment is not exploring the potential that performance evaluation can offer and is already available in literature.

Supplier sustainability assessment for the UK defence industry

Purpose

– The purpose of this paper is to design a framework for assessing supplier sustainability (in terms of survivability) within the defence industry based on financial and operational dimensions.

Design/methodology/approach

– The research employs a case study approach to identify a research gap in the area of supplier performance measurement and proposes five dimensions to assess supplier sustainability from the review of literature and industry practice while employing a systematic approach to generate measures for each dimension with suggested actions to improve sustainability.

Findings

– The sustainability measures, dimensions and improvement actions developed were validated with industrial experts from three defence companies and implemented as a sustainability system. A case study was applied and the results were generated.

Research limitations/implications

– Future research could include further case study application and application of dimensions and measures to other industries.

Practical implications

– The paper offers managerial implications about the need to consider the survivability of suppliers in the long term, especially in the current economic climate and think about mitigation strategies to enable economic sustainability.

Originality/value

– This paper adds to the existing knowledge in the supply chain area and proposes a novel approach to supplier performance measurement and management which is holistic.