Value creation in project business relationships: Supplier and customer's perspectives

The purpose of this study is to analyze supplier’s value creation ability in project business in order to enhance customer’s business. In addition, the aim is to identify the role of business relationships in value creation and analyze the applicability of key account management in project business. The study considers value from the customer’s point of view. The concepts of value and value creation are widely discussed in marketing literature. Theory emphasizes the importance of value creation and business relationships in business markets. The empirical part of the study is conducted as a case study research. The empirical evidence is collected by interviewing one supplier organization and their three customer organizations. These companies operate in Finnish and global industrial markets. Data is collected through semi-structured interviews and analyzed by using qualitative content analysis. The study identifies several customer value drivers influencing on the value creation, which can be divided into product, service and relationship elements. One of the recognized value drivers is customer-supplier relationship. The findings show that a closer relationship enhances value creation possibilities and the key account management program allows effective managing of business relationships. As managerial implications, suppliers should seek to create continuous and conversational relationships with the key account customers.

Sustainable sourcing in global supply network: assessment of geographic challenges and management methods Case: Stora Enso

The purpose of this work was to describe and compare sourcing practices and challenges in different geographies, to discuss possible options to advance sustainability of global sourcing, and to provide examples to answer why sourcing driven by sustainability principles is so challenging to implement. The focus was on comparison between Europe & Asia & South-America from the perspective of sustainability adoption. By analyzing sourcing practices of the case company it was possible to describe main differences and challenges of each continent, available sourcing options, supplier relationships and ways to foster positive chance. In this qualitative case study gathered theoretical material was compared to extensive sourcing practices of case company in a vast supplier network. Sourcing specialist were interviewed and information provided by them analyzed in order to see how different research results and theories are reflecting reality and to find answers to proposed research questions.

Spare Part Management of Bubbling Fluidized Bed Boiler

Energy generation industry is very capital-intensive industry. Productivity and availability requirements have increased while competition and quality requirement have increased. Maintenance has a significant role that these requirements can be reached. Even maintenance is much more than repairing faults nowadays, spare parts are important part of maintenance. Large power boilers are user-specific therefore features of boilers vary from project to project. Equipment have been designed to follow the customer’s requirements therefore spare parts are mainly user-specific also. The study starts with literature review introducing maintenance, failure mechanisms, and systems and equipment of bubbling fluidized bed boiler. At the final part spare part management is discussed from boiler technology point of view. For this part of the study science publications about spare part management are utilized also some specialist from a boiler technology company and other original equipment manufacturers were interviewed. Spare part management is challenging from the boiler supplier point of view and the end user of spare parts has a responsibility of stocking items. Criticality analysis can be used for finding most critical devices of the process and spare part management shall focus to those items. Spare parts are part of risk management. Stocking spare parts is increasing costs but then high spare part availability is decreasing delay time caused by fault of item.

Modelling requirements of supplier selection for benchmarking service provision

Supplier selection has a great impact on supply chain management. The quality of supplier selection also affects profitability of organisations which work in the supply chain. As suppliers can provide variety of services and customers demand higher quality of service provision, the organisation is facing challenges for making the right choice of supplier for the right needs. The existing methods for supplier selection, such as data envelopment analysis (DEA) and analytical hierarchy process (AHP) can automatically perform selection of competitive suppliers and further decide winning supplier(s). However, these methods are not capable of determining the right selection criteria which should be derived from the business strategy. An ontology model described in this paper integrates the strengths of DEA and AHP with new mechanisms which ensure the right supplier to be selected by the right criteria for the right customer's needs.

Trust and relational embeddedness: exploring a paradox of trust pattern development in key supplier relationships

This paper explores the role of trust as an enabler and constraint between buyers and suppliers engaged in long-term relationships. According to the relational view, cooperative strategies require trust-based mutual commitments to co-create value. However, complete pictures of the positive and negative outcomes from trust development have yet to be fully developed. In particular, trust as an originator of path dependent constraints resulting from over embeddedness is yet to be integrated into the relational view. We use a case-based methodology to explore whether trust is an optimizing phenomenon in key supplier relationships. Two cases where trust development processes demonstrate a paradox of trust-building behaviors cultivate different outcomes constraining value co-creation.

Cost function for sub-agent elements in multi-agent energy management system

Distributed generation plays a key role in reducing CO2 emissions and losses in transmission of power. However, due to the nature of renewable resources, distributed generation requires suitable control strategies to assure reliability and optimality for the grid. Multi-agent systems are perfect candidates for providing distributed control of distributed generation stations as well as providing reliability and flexibility for the grid integration. The proposed multi-agent energy management system consists of single-type agents who control one or more gird entities, which are represented as generic sub-agent elements. The agent applies one control algorithm across all elements and uses a cost function to evaluate the suitability of the element as a supplier. The behavior set by the agent's user defines which parameters of an element have greater weight in the cost function, which allows the user to specify the preference on suppliers dynamically. This study shows the ability of the multi-agent energy management system to select suppliers according to the selection behavior given by the user. The optimality of the supplier for the required demand is ensured by the cost function based on the parameters of the element.

Relational architecture and relational capability: organisational levers to support strategic supplier relationships

The resource based view of strategy suggests that competitiveness in part derives from a firms ability to collaborate with a subset of its supply network to co-create highly valued products and services. This relational capability relies on a foundational intra and inter-organisational architecture, the manifestation of strategic, people, and process decisions facilitating the interface between the firm and its strategic suppliers. Using covariance-based structural equation modelling we examine the relationships between internal and external features of relational architecture, and their relationship with relational capability and relational quality. This is undertaken on data collected by mail survey. We find significant relationships between both internal and external relational architecture and relational capability and between relational capability and relational quality. Novel constructs for internal and external elements of relational architecture are specified to demonstrate their positive influence on relational capability and relationship quality.

Creating buyer-supplier commitment in food supply chains at the base of the pyramid

Esta pesquisa analisa o papel dos aspectos relacionais tais como confiança, comprometimento, interdependência e uso de poder âmbito das estratégias de negócios inclusivos que envolvem pequenos agricultores nas cadeias de valor de multinacionais dos agronegócios no Brasil. Os negócios inclusivos de abastecimento direto por empresas com pequenos agricultores em países em desenvolvimento têm sido reconhecidos como uma abordagem economicamente viavél e promissora para criar impacto social e melhorar as condições de vida de produtores rurais da "base da pirâmide", ao mesmo tempo permitindo que as empresas reforçar as suas posições nos mercados locais e adquirir matérias primas de qualidade a custos mais baixos. Estudos sobre este tema focam amplamente sobre as vantagens comerciais e competitivas que as empresas derivam do abastecimento direito com pequenos fornecedores, apresentando modelos de cadeia de valor customizados e ajustados estratégias globais de negócios, no entanto ainda há pouco conhecimento teoricamente fundamentado sobre os desafios organizacionais e relacionais da relação entre o comprador multinacional e o fornecedor de baixa renda. Além disso, pouco foco tem-se prestado sobre como assimetrias entre multinacionais e produtores de baixa renda, em questão de poder, dependência e de valores pode afetar a evolução dessas relações de negócios. O objetivo do estudo foi descrever os fatores que permitem a esses parceiros assimétricos de construir relacionamentos comerciais de longo prazo e mutuamente benéficos. A metodologia da teoria fundamentada foi usada e foi particularmente adequada para examinar as relações entre comprador e fornecedor e para recolher experiências de campo em três setores principais dominados pela agricultura familiar no Brasil, ou seja laticínios, avi-suinocultura e produção hortícola. Os principais conceitos teóricos da área de Relationship Marketing foram usados para apoiar os resultados da pesquisa de campo. A principal conclusão desta pesquisa é a importância de ir além da construção de confiança na estratégia de gestão do relacionamento entre comprador e fornecedor e de criar parcerias diádicas baseadas na interdependência mútua, a fim de reduzir as assimetrias e melhorar o comprometimento entre a empresa e o pequeno agricultor.

Relational value creation and appropriation in buyer supplier relationships

his paper bridges the gap between the buyer-supplier literature and the definition of competitive advantage as value creation found in the strategic management literature. This study proposes and tests an integrative definition of the relational value that is created and appropriated in a dyad

Global supply chain risk management: a multicase study in the mango exportation chain

The purpose of this study is to understand how different members manage risk in the global supply chain. Through a multi-case study of the Brazilian mango exportation chain to the United States, four actors of this chain were investigated: supplier, exporter, importer and logistics operator. A research protocol was developed based on previous research conducted by Christopher, et al. (2011). Main results show that risk management is heterogeneous among members of the mango chain, the exporter is the most penalized by the results of the risk chain and collaboration is the main mitigation strategy observed

Are supplier selection criteria going green? Case studies of companies in Brazil

Purpose - The purpose of this paper is to verify if Brazilian companies are adopting environmental requirements in the supplier selection process. Further, this paper intends to analyze whether there is a relation between the level of environmental management maturity and the inclusion of environmental criteria in the companies' selection of suppliers.Design/methodology/approach - A review of mainstream literature on environmental management, traditional criteria in the supplier selection process and the incorporation of environmental requirements in this context. The empirical study's strategy is based on five Brazilian case studies with industrial companies. Face-to-face interviews and informal conversations are to be held, explanations made by e-mail with representatives from the purchasing, environmental management, logistics and other areas, and observation and the collection of company documents are also employed.Findings - Based on the cases, it is concluded that companies still use traditional criteria to select suppliers, such as quality and cost, and do not adopt environmental requirements in the supplier selection process in a uniform manner. Evidence found shows that the level of environmental management maturity influences the depth with which companies adopt environmental criteria when selecting suppliers. Thus, a company with more advanced environmental management adopts more formal procedures for selecting environmentally appropriate suppliers than others.Originality/value - This is the first known study to verify if Brazilian companies are adopting environmental requirements in the supplier selection process.

Measuring supply chain management practices

Purpose: This paper aims to perform an empirical investigation about the constructs and indicators of the supply chain management practices framework. Design/methodology/approach: The measuring framework proposed is based on a survey that was carried out on 107 Brazilian companies. Statistical techniques were employed to verify, validate, and test the reliability of the constructs and their indicators. To validate this framework principal component analysis and structural equation modeling techniques were used. Findings: In general, previous studies suggest six constructs for measuring the supply chain management practices framework. However, in this study a framework was achieved with four constructs of supply chain management practices, namely, supply chain (SC) integration for production planning and control (PPC) support, information sharing about products and targeting strategies, strategic relationship with customer and supplier, and support customer order. This framework has adequate levels of validity and reliability. Research limitations/implications: The main limitation of this study was that only a small sample of companies in a single sector and country were surveyed, and therefore there needs to be further research considering the special conditions in other countries. Originality/value: This study investigated statistically set indicators to discuss the topic supply chain management practices. The framework obtained has good quality of validity and reliability indicators. Thus, an alternative framework has been added to measure supply chain management practices, which is currently a popular topic in the supply chain mainstream literature. Both defined constructs and the validated indicators can be used in other studies on supply chain management. © Emerald Group Publishing Limited.