Research opportunities in purchasing and supply management

Purchasing and supply management (PSM) are crucial for the effective and efficient operation of manufacturing firms, now more than ever. The PSM function has evolved from being routine and mechanical to a function that can deliver true competitive advantage. The trend toward increased globalisation and outsourcing, along with a focus on innovation- and capability-driven supply management, has led to an increased reliance on suppliers. This has significantly enhanced the importance of PSM for manufacturing companies. The heightened significance in practice has been paralleled by an increasing attention of researchers in developing theories and chronicling best practices. At the same time, the rapid rate of change represents both daunting challenges and exciting opportunities for research in PSM. It is the goal of this article to highlight such challenges and discuss ensuing opportunities in PSM research. This objective is accomplished via the nominal group technique involving a panel of leading scholars in the purchasing and supply management field. As such, the article presents a synthesis and discussion of important research themes, poses a set of intriguing research opportunities, and serves as a motivation for future investigation.     

An institutional theory perspective of business continuity planning for purchasing and supply management

Supply chains are increasingly susceptible to unplanned, unanticipated disruptions. With the implementation of the practices of lean systems, total quality management (TQM), time-based competition and other supply chain improvement initiatives, managers now realize that their supply chains are fragile, particularly to environmental disruptions outside their control. As a result of recent events including 11 September 2001, a system is now emerging in purchasing to manage supply risk characterised as having a very low probability of occurrence, difficult to predict, and with a potentially catastrophic impact on the organization. This paper presents case study research findings examining how and why firms create business continuity plans to manage this risk. Propositions are then presented from an institutional theory perspective to examine how various isomorphic pressures result in firms having similar risk management practices embedded in their supply management practices over time.     

Optimal purchase and selling strategy for wholesaler of produce: sorted or unsorted selling?

Produce (e.g. fruit and vegetable) varies in quality when it is picked from plants. Then a produce wholesaler has two sales strategies: (1) unsorted selling (US), i.e. selling the produce to the market at one price and (2) sorted selling (SS), i.e. pre-sorting the produce into different grades by quality and selling them at different prices. When the SS strategy is adopted, the demands of the different grades are uncertain and substitutable. In this paper, we study the joint optimal purchase and sales strategy for selling mixed quality produce to customers with heterogeneous quality preferences. We first derive the optimal purchase policies under the two strategies and then identify the conditions under which the SS or US strategy is optimal. We show that the optimal sales strategy is determined by the marginal purchase and sorting cost and the fixed investment cost, the overall quality level of the produce, and the substitution rate for the high-quality and low-quality produce. This finding differs from the conventional wisdom that the SS strategy is optimal in the produce retail business. Finally, we conduct numerical studies based on real-world data to generate managerial insights from the analytical findings.     

Order allocation in purchasing management: a review of state-of-the-art studies from a supply chain perspective

Supplier selection (SS) and order allocation (OA) are strategic decisions that have a substantial effect on a company’s performance. However, order allocation is often neglected, since it results from supplier selection and is considered supplementary: little attention has been paid to its specific nature and complexity. Consequently, the authors conducted a systematic literature review specifically regarding order allocation methods. The research aimed to evaluate how often and when the issue has been dignified with an individual focus, independently of the supplier selection problem. This study conducted a comprehensive examination of the order allocation models and solutions, criteria for order quantity allocation, features of suppliers, items, planning periods, and demand most commonly considered in the literature. Finally, it aimed to discover whether supply chain configurations and trends have been considered in efforts to find a solution to the problem. The scientific contribution of this study is threefold: (i) to expand the review of scientific literature regarding order allocation models, (ii) to identify research gaps and highlight research opportunities, and (iii) to suggest a research agenda for the development of order allocation models according to the requirements of current trends in supply chain management.     

Strategic purchasing,supply management practices and buyer performance improvement: an empirical study of UK manufacturing organisations

Purchasing is increasingly seen as an important strategic activity of the firm. However, there is little evidence examining the effects of strategic purchasing on a firm's inter-organisational supply management practices and performance. The purpose of this paper is to examine the effect of strategic purchasing on the supply management practices of socialisation, supplier integration and supplier responsiveness, together with relationship performance. Using empirical data collected from 111 United Kingdom purchasing executives, a structural equation model is used to test the theoretical framework. The results provide support for four of the six hypotheses developed. Strategic purchasing was found to have an indirect, significant effect on improving buyer performance, acting through supplier integration. Strategic purchasing also had a significant effect on the use of socialisation mechanisms, but not on supplier responsiveness. Our research indicates that close, long-term supplier relationships can lead to the creation of relational rents. Implications for future research and suggestions for improving the rigour of strategic purchasing research are made.     

Nationalisation of electricity supply 1947: reasons and problems

It is widely known that the electricity supply industry in Great Britain was nationalised (Electricity Act, 1947) by a Labour government in accordance with Clause 4 of the Party's then Constitution but there are other reasons why a large-scale reorganisation was needed. It is well-known, too, that the newly nationalised industry had problems in engineering, but there were also other problems. In this paper, the author discusses some of these other problems in which he was involved. Firstly, however, he gives a brief word about the industry's history     

A note on an industrial strategy for stock management in supply chains: modelling and performance evaluation

An analytic formulation of consignment stock (CS) policy has been proposed in Braglia and Zavanella (2003 Braglia M Zavanella L 2003 An industrial strategy for stock management in Supply Chains: modelling and performance evaluation International Journal of Production Research 2003 41 3793 3808  , International Journal of Production Research, 41, 3793) where an implicit analytical solution is given. In this note it is shown that this solution has properties that enable it to be developed into a completely explicit form, allowing for a joint optimization of all decision variables governing the delivery management.     

Modelling an industrial strategy for inventory management in supply chains: The 'Consignment Stock' case

Stock control in Supply Chain management is of concern here, particularly an industrial practice observed in the automotive manufacturing context and defined as 'Consignment Stock' (CS). To understand the potentiality of CS policy, an analytical modelling is offered that refers to the problem of a single-vendor and single-buyer productive situation. A comparison with the optimal solution available in the literature is also shown. The conclusion proposes a method that is useful in identifying those productive situations where CS might be implemented successfully. Results show how CS policy might be a strategic and profitable approach to stock management in uncertain environments, i.e. where delivery lead times or market demand vary over time.     

The impact of total quality management on supply chain management and firm's supply performance

This research investigates the relationships among total quality management practices (TQMP), supply chain management practices (SCMP) and firm's supply performance (FSP) in the automotive industry in Thailand. The measurement instruments for SCMP, TQMP and FSP were developed based on an extensive literature review and verified by experts, pilot test and various statistical techniques to ensure reliability and validity in structural equation modeling constructs. The hypothesized model was tested through a path analysis. Qualitative case studies of two large first-tier automotive suppliers were conducted to obtain more in-depth information. We found that the set of SCMP, TQMP and FSP measures are reliable and valid for Thailand's automotive industry. TQMP not only has a significant direct positive impact on SCMP and on FSP but also a significant indirect positive impact on FSP through SCMP.     

Science and precaution in the appraisal of electricity supply options

The technological risks associated with electricity generating options are a crucial consideration in the governance of energy strategies. Conversely, many central issues in the broader social debate over the governance of environmental risk (such as acid gas emissions, radioactive waste management, nuclear safety and global climate change) relate very strongly to technology choice in the electricity supply sector. The particularities of this field, therefore, offer a topical and pertinent case with which to explore the relationship between science and precaution in the governance of technological risk. By reference to the electricity sector, the present paper examines the contrasts between 'risk-based' and 'precautionary' approaches to the governance of risk, paying particular attention to the problems of intractable uncertainties and divergent values. A number of theoretical and methodological issues in conventional risk-assessment and cost-benefit analysis are examined and their practical implications for appraisal explored. Attention then turns to the form that might be taken by approaches to the governance of energy risks that are at the same time scientifically well-founded and precautionary. Conclusions are drawn for decision and policy making in this area.     

New graphical tools for process changes via load shifting for hybrid power systems based on Power Pinch Analysis

A hybrid power system (HPS) generates electrical power by a combination of several renewable energy and fossil fuel generators. The Power Pinch Analysis concept has been recently implemented for the optimal design of a HPS. This work introduces a new graphical tool known as the ‘outsourced and storage electricity curves’ (OSEC) to visualise the required minimum outsourced electricity and the current storage capacity at each time interval during HPS startup and continuous operation. Heuristics for load shifting for the integrated HPS system that can lead to further reductions of the maximum storage capacity and the maximum power demand (MPD) have also been introduced in this work. Note that the routine load shifting strategies in energy management cannot be used without the knowledge on how the integrated HPS components interact with one another. Application of the new approach on case studies demonstrates that the OSEC can provide vital insights for designers to perform the correct load shifting. The results show that up to 50 % reduction in the maximum storage capacity and the MPD is achieved.     

计算机软件的日常管理及其维护策略分析

近年来,随着网络时代的不断发展,计算机已经成为人们生活、工作以及学习等重要的工具。当前,计算机的使用已经渗透到人们生活的各个领域当中,并对人们生活产生极大的影响。但是,人们在使用计算机的时候经常会发现,计算机由于各种原因会出现不同的故障,严重的影响到了人们的正常工作。为此,在使用计算机的过程中,一定要注意对计算机软件的日常管理与维护工作,确保计算机能够正常的工作,为我们的日常生活以及正常工作做贡献。     

Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility

The paper examines the mediating effect of supply chain (SC) practices on the relationship between agile supply chain (ASC) strategy and SC performance. It further examines the moderating effect of information systems (IS) capability for agility on this mediated relationship. Using the theoretical lenses of complementarity and the information processing view of the supply chain, we hypothesise that strategic supplier partnership, customer relationship, postponement and lean practices, mediate the relationship between ASC strategy and SC performance. We further hypothesise that IS capability for agility moderates each of these mediated relationships. We empirically test the hypotheses using survey data from members of senior and executive management in the logistics/supply chain functions of 205 firms. The paper contributes to the literature on ASCs by theoretically explaining and empirically demonstrating how SC practices and IS capability for agility act together to effect a positive relationship between ASC strategy and supply chain performance.     

Empirical research on supply chain management: A critical review and recommendations

Despite the growing interest in supply chain management (SCM), our understanding of the subject issue is still limited, largely due to inadequate attention being placed to theory building. To address this problem, this paper highlights some major weaknesses of the extant literature with respect to the conceptualization, operationalization, and modelling of SCM, identifies potential causes underlying these shortcomings, and gives some recommendations to improve theory development in this area. Specifically, it demonstrates that (1) the SCM construct has been perceived narrowly from the perspective of a particular traditional function of a firm; (2) the construct validity is threatened due to inadequate pre-operational explication of the content domain, among other operationalization problems; and (3) the dominant conceptual SCM models focus mainly on the practices-performance relationship, overlooking the context-practices relationship. A greater advance in theory development is possible if researchers adopt a process-based view of SCM, develop conceptual SCM models based on a context-practices-performance framework, and synthesize theories and research of SCM and those of related fields such as organization studies.     

Pinch Roller Failure Analysis and Resulting Enhancement of Rebar Mechanical Properties

Reinforcing bars, popularly termed “rebars,” are used to impart tensile strength to concrete structures. Concrete has high resistance to weathering and fire and high compressive strength but almost no tensile strength, hence rebars are used to provide the latter to concrete. Property consistency along the length of rebars is an important prerequisite. When the finished product is subjected to thermomechanical treatment (TMT), proper control of rolling and water box parameters and efficient pinch rolling are needed to achieve acceptable properties. Variation of yield strength (YS) along TMT bars from the front to back end has been observed within the same heat treatment. In the presented investigation, it was observed that pinch rolling ineffectiveness is the main reason for the poor mechanical properties at the back end. The pinch roller was unable to support the back end of the TMT bars properly to maintain the speed and tension of the bars, resulting in nonuniform cooling of the back end through the water box and subsequent mechanical property failure. Due to the substandard material of the pinch roller, it was unable to hold the back end of the bar properly. Based on analysis of the roller it was concluded that it failed due to improper microstructure, resulting in inadequate hardness and toughness for the stringent operating conditions. AISI H13 is a better material to use in such high-service-temperature conditions. Moreover, proper heat treatment is needed to achieve adequate hardness and microstructure properties. After proper heat treatment of pinch rollers, their service life was increased twofold, minimizing the YS variation along the rebars.     

Understanding supply chain management: critical research and a theoretical framework

Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigation on the critical constructs of SCM, and the exploration of their impacts on supply chain performance. To this end, we analyse over 400 articles and synthesize the large, fragmented body of work dispersed across many disciplines such as purchasing and supply, logistics and transportation, marketing, organizational dynamics, information management, strategic management, and operations management literature.     

The effects of integrated supply management practices and environmental management practices on relative competitive quality advantage

Superior quality continues to be central to a manufacturing company's success, and firms are constantly striving for quality advantage over their competition. It is therefore crucial for companies to ensure the sound practice of quality management principles. However, companies must also seek additional avenues to enhance the relative competitive quality advantage of their product offerings. In this context, we examine the role of integrated supply management practices (SMP) and environmental management practices (EMP) as drivers of actual and perceived quality. We suggest that these groups of practices, in addition to quality management practices, are crucial in an increasingly transparent, competitive and global business environment. As such, SMP can be leveraged with suppliers providing expertise, capabilities and high quality inputs for the final product, resulting in higher actual quality, but also via the suppliers’ more intangible reputation, generating higher perceived quality. Similarly, EMP can result in process improvements impacting actual quality, but can also create a favourable image of the company among customers, enhancing the perceived quality of the firm's products. Overall, we suggest SMP and EMP as key strategic drivers aiding in the further differentiation of firms. Our hypotheses are grounded in the resource-based view of the firm, and are tested with survey data collected from 434 manufacturing plants.