Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 9

Search results for: suppliers

9 Casting Users- Perspectives on Foundries as Suppliers

Authors: T. Saarelainen, O. Piha, P. Makkonen, J. Orkas

Abstract:

Global competition is tightening and companies have to think how to remain competitive. The main aim of this paper is to discuss how Finnish foundries will remain competitive. To fulfil the aim, we conducted interviews in nine companies using castings and analysed buyer–supplier relationships, current competitive advantages of Finnish foundries and customer perspectives on how Finnish foundries remain competitive. We found that the customerfoundry relationship is still closer to traditional subcontracting than partnering and general image of foundries is negative. Current competitive advantages of Finnish foundries include designing cooperation, proximity and flexibility. Casting users state that Finnish foundries should sell their know-how and services instead of their capacity, concentrate on prototype, single and short series castings and supply ready-to-install cast components directly to customers- assembly lines.

Keywords: Buyer-supplier relationship, casting, competitiveadvantage, customer prespective.

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8 Decision Support System for Suppliers

Authors: Babak Tashakori Bafghi, Laleh Tashakori, Reza Allahyari Soeini, Mohammad Mokhtari

Abstract:

Supplier selection is a multi criteria decision-making process that comprises tangible and intangible factors. The majority of previous supplier selection techniques do not consider strategic perspective. Besides, uncertainty is one of the most important obstacles in supplier selection. For the first, time in this paper, the idea of the algorithm " Knapsack " is used to select suppliers Moreover, an attempt has to be made to take the advantage of a simple numerical method for solving model .This is an innovation to resolve any ambiguity in choosing suppliers. This model has been tried in the suppliers selected in a competitive environment and according to all desired standards of quality and quantity to show the efficiency of the model, an industry sample has been uses.

Keywords: Knapsack, linear programming, supplier select, supply chain management.

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7 Model Development for Allocation of Raw Material in Timber Processing Industry in Indonesia

Authors: Muh. Hisjam, Nancy Oktyajati, Wakhid A. Jauhari, Wahyudi Sutopo

Abstract:

This research is intended to develop a raw material allocation model in timber processing industry in Perum Perhutani Unit I, Central Java, Indonesia. The model can be used to determine the quantity of allocation of timber between chain in the supply chain to select supplier considering factors that are log price and the distance. In determining the quantity of allocation of timber between chains in the supply chain, the model considers the optimal inventory in each chain. Whilst the optimal inventory is determined based on demand forecast, the capacity and safety stock. Problem solving allocation is conducted by developing linear programming model that aims to minimize the total cost of the purchase, transportation cost and storage costs at each chain. The results of numerical examples show that the proposed model can generate savings of the purchase cost of 20.84% and select suppliers with mileage closer.

Keywords: Allocation model, linear programming, purchase costs, storage costs, suppliers, transportation costs.

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6 Performance Determinants for Convenience Store Suppliers

Authors: Zainah Abdullah, Aznur Hajar Abdullah

Abstract:

This paper examines the impact of information and communication technology (ICT) usage, internal relationship, supplier-retailer relationship, logistics services and inventory management on convenience store suppliers- performance. Data was collected from 275 convenience store managers in Malaysia using a set of questionnaire. The multiple linear regression results indicate that inventory management, supplier-retailer relationship, logistics services and internal relationship are predictors of supplier performance as perceived by convenience store managers. However, ICT usage is not a predictor of supplier performance. The study focuses only on convenience stores and petrol station convenience stores and concentrates only on managers. The results provide insights to suppliers who serve convenience stores and possibly similar retail format on factors to consider in improving their service to retailers. The results also provide insights to government in its aspiration to improve business operations of convenience store to consider ways to enhance the adoption of ICT by retailers and suppliers.

Keywords: Information and communication technology (ICT), internal relationship, inventory management, logistics services, supplier performance, supplier-retailer relationship.

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5 Customer Audits as a Quality Control Tool for Both Suppliers and Customers

Authors: Denisa Ferenčíková, Petr Briš

Abstract:

Customer audits are generally used to ensure customer that supplier is continuously able to meet his requirements while supplying him required products and services. However, customer audits can be considered as a very useful quality control tool for suppliers as well. In our paper, we analyzed the process of customer audits realized in Czech companies from both perspectives: a supplier´s viewpoint and customer´s viewpoint. At the end, we tried to emphasize some areas that should not be omitted during the audit process.

Keywords: Customer Audit, Quality Control, Quality Management, Product Quality, Service Quality, Process Quality.

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4 A New Framework for Evaluation and Prioritization of Suppliers using a Hierarchical Fuzzy TOPSIS

Authors: Mohammad Taghi Taghavifard, Danial Mirheydari

Abstract:

This paper suggests an algorithm for the evaluation and selection of suppliers. At the beginning, all the needed materials and services used by the organization were identified and categorized with regard to their nature by ABC method. Afterwards, in order to reduce risk factors and maximize the organization's profit, purchase strategies were determined. Then, appropriate criteria were identified for primary evaluation of suppliers applying to the organization. The output of this stage was a list of suppliers qualified by the organization to participate in its tenders. Subsequently, considering a material in particular, appropriate criteria on the ordering of the mentioned material were determined, taking into account the particular materials' specifications as well as the organization's needs. Finally, for the purpose of validation and verification of the proposed model, it was applied to Mobarakeh Steel Company (MSC), the qualified suppliers of this Company are ranked by the means of a Hierarchical Fuzzy TOPSIS method. The obtained results show that the proposed algorithm is quite effective, efficient and easy to apply.

Keywords: ABC analysis, Hierarchical Fuzzy TOPSIS, Primary supplier evaluation, Purchasing strategy, supplier selection

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3 Selection of Strategic Suppliers for Partnership: A Model with Two Stages Approach

Authors: Safak Isik, Ozalp Vayvay

Abstract:

Strategic partnerships with suppliers play a vital role for the long-term value-based supply chain. This strategic collaboration keeps still being one of the top priority of many business organizations in order to create more additional value; benefiting mainly from supplier’s specialization, capacity and innovative power, securing supply and better managing costs and quality. However, many organizations encounter difficulties in initiating, developing and managing those partnerships and many attempts result in failures. One of the reasons for such failure is the incompatibility of members of this partnership or in other words wrong supplier selection which emphasize the significance of the selection process since it is the beginning stage. An effective selection process of strategic suppliers is critical to the success of the partnership. Although there are several research studies to select the suppliers in literature, only a few of them is related to strategic supplier selection for long-term partnership. The purpose of this study is to propose a conceptual model for the selection of strategic partnership suppliers. A two-stage approach has been used in proposed model incorporating first segmentation and second selection. In the first stage; considering the fact that not all suppliers are strategically equal and instead of a long list of potential suppliers, Kraljic’s purchasing portfolio matrix can be used for segmentation. This supplier segmentation is the process of categorizing suppliers based on a defined set of criteria in order to identify types of suppliers and determine potential suppliers for strategic partnership. In the second stage, from a pool of potential suppliers defined at first phase, a comprehensive evaluation and selection can be performed to finally define strategic suppliers considering various tangible and intangible criteria. Since a long-term relationship with strategic suppliers is anticipated, criteria should consider both current and future status of the supplier. Based on an extensive literature review; strategical, operational and organizational criteria have been determined and elaborated. The result of the selection can also be used to determine suppliers who are not ready for a partnership but to be developed for strategic partnership. Since the model is based on multiple criteria for both stages, it provides a framework for further utilization of Multi-Criteria Decision Making (MCDM) techniques. The model may also be applied to a wide range of industries and involve managerial features in business organizations.

Keywords: Kraljic’s matrix, purchasing portfolio, strategic supplier selection, supplier collaboration, supplier partnership, supplier segmentation.

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2 A Novel Model for Simultaneously Minimising Costs and Risks in Just-in-Time Systems Using Multi-Backup Suppliers: Part 2- Results

Authors: Faraj El Dabee, Romeo Marian, Yousef Amer

Abstract:

This paper implements the inventory model developed in the first part of this paper in a simplified problem to simultaneously reduce costs and risks in JIT systems. This model is developed to ascertain an optimal ordering strategy for procuring raw materials by using regular multi-external and local backup suppliers to reduce the total cost of the products, and at the same time to reduce the risks arising from this cost reduction within production systems. A comparison between the cost of using the JIT system and using the proposed inventory model shows the superiority of the use of the inventory model.

Keywords: Lean manufacturing, Just-in-Time (JIT), production system, cost-risk reduction, inventory model, eternal supplier, local backup supplier.

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1 A Novel Model for Simultaneously Minimising Costs and Risks in Just-in-Time Systems Using Multi-Backup Suppliers: Part 1- Modelling

Authors: Faraj El Dabee, Romeo Marian, Yousef Amer

Abstract:

Just-In-Time (JIT) is a lean manufacturing tool, which provides the benefits of efficiency, and of minimizing unnecessary costs for many organisations. However, the risks arising from these benefits have been disregarded. These risks impact on system processes disrupting the whole supply chain. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed to ascertain an optimal ordering strategy for procuring raw materials by using regular multi-external and local backup suppliers to reduce the total cost of the products, and at the same time to reduce the risks arising from this cost reduction within production systems. Some results that will be illustrated in the second part of this paper are presented.

Keywords: Lean manufacturing, Just-in-Time (JIT), production system, cost-risk reduction, inventory model, eternal supplier, local backup supplier.

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