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Model Design Supplier Relationship Performance Measurement

Year 2020, Volume: 19 , 11 - 22, 31.12.2020

Abstract

One way to maintain a position is how to meet customer satisfaction in a business-to-business context and build buyer-supplier relationships. There are many factors that influence customer satisfaction in the context of business to business and build buyer-supplier relationships. This paper aims to design a more comprehensive supplier relationship performance measurement (SRPM) model with the buyer's perspective and the supplier's perspective. The proposed SRPM model to make it easier for manufacturing companies to measure the performance of the established buyer-supplier relationship. The research method uses interviews and questionnaires to supply chain actors in manufacturing companies and validated by supply chain management experts. The resulting design model for measuring SRPM uses several factors including cost, quality, lead-time, flexibility, trust, power, transparency, communication, commitment, economic sustainable, social sustainable and environmentally sustainable. The proposed model is implemented directly into manufacturing companies using the Analitycal Hirarchy Process (AHP) method. The results obtained look at the total final value of the supplier-buyer relationship and do the mapping with the SRPM matrix model.

References

  • Amoako-Gyampah, K., Boakye, K, G. Adaku, E. & Famiyeh, S. (2019). Supplier relationship management and firm performance in developing economics: A moderated mediation analysis of flexibility capability and ownership structure. Production Economics. 208, pp. 160-170.
  • Asif, M., Jajja, M, S, S., & Searcy, C. (2019). Social compliance standarts: re-evaluating the buyer and supplier perspectives.Cleaner Production, 227, pp.457-471.
  • Bandara, S., Leckie, C., Lobo, A., & Hewege, C. (2017). Power and relationship quality in supply chains the case of Australian organics fruit and vegetable industry. Asia Pacific Journal of Marketing and Logistics. 29(3), pp. 501-518.
  • Boiko, A., Shendryk, V., & Boiko, O. (2019). Information systems for supply chain management: uncertainties risks and cyber security.Procedia Computer Science, 149, pp. 65-70.
  • Beikkhakhian, Y., Javanmardi, M., Karbasian, M., & Khayambashi, B. (2015). The application of ISM model in evaluating agile suppliers selection criteria and ranking suppliers using fuzzy TOPSIS-AHP methods. Expert Systems with Applications, 42(15–16), pp. 6224–6236.
  • Cerna, L., & Bukova, B. (2016). Supplier evaluation methodology in the logistic company. Procedia engineering, 134, pp. 377-385.
  • Damlin, A., Dietersdottir, K., Fornander, D., Brykt, J, M., Polyantseva, E., & Sundquist, D. (2012). Measuring buyer-supplier relationship performance. Retrieved from http://publications.lib.chalmers.se/records/fulltext/170612/local_170612.pdf
  • Gangurde, S, R., & Chavan, A, A. (2016). Benchmarking of purchasing practices using Kraljic approach. Benchmarking: An International Journal, 23(7), 1751-1779.
  • Gardner, T, A., Benzie, M., Borner, J., Dawkins, E., Fick, S., Garrett, R., Godar, J., Grimard, A., Lake, S., Larsen, R, K., Mardas, N., McDermott, C, L., Meyfroidt, P., Osbeck, M., Person, M., Sembers, T., Suavet, C., Strassburg, B., Trevisan, A., West, C., & Wolvekamp, P. (2019). Transparency and sustainability in global commodity supply chains. World Development. 121, 163-177.
  • Giannakis, M., Dubey, R., Vlachos, I., & Ju, Y. (2020). Supplier sustainability performance evaluation using the analytic network process. Cleaner Production. 247, 119439.
  • Graca, S, S., Barry, J, M., & Doney, P, M. (2015). Performance outcomes of behavioral attributes in buyer-supplier relationships. Journal of Business & Industrial Marketing, 30(7), 805-816.
  • Huang, S., Wang, C., & Chiou, C. (2014). FAHP application for green supplier selection in electronic industry. The Journal of Human Resource and Adult Learning, 10(2), 50-58.
  • Johnson, P, F., & Flynn, A, E. (2015). Purchasing and supply management, fifteenth edition. McGraw Hill.
  • Khan, S, A., Sarpong, S, K., Arhin, F, K., & Sarpong, H,K. (2018). Supplier sustainability performance evaluations and selection: a framework and methodology. Cleaner Production, 205, 964-979.
  • Kurniawan, R., Hasibuan., S., & Nugroho., R. E. (2017). Analisis Kriteria Dan Proses Seleksi Kontraktor Chemical Sektor Hulu Migas: Aplikasi Metode Delphi-Ahp. Jurnal Ilmu Manajemen, VII(2), 316–329.
  • Maestrini,V., Maccarrone, P., Caniato, F., & Luzzini, D. (2018). Supplier performance measurement systems: communication and reaction modes. Industrial Marketing Management, 74, 298-308.
  • Oghazi, P., Rad, F, F., Zaefarian, G., & Mortazavi, S. (2016). Unity is strength: A study of supplier relationship management integration. Business Research, 69, 4804-4810
  • Rajagopal., & Rajagopal, A. (2009). Buyer-supplier relationship and operational dynamics. Operation Research Society, 60, 313-320.
  • Taherdoost, H., & Brard, A. (2019). Analyzing the process of supplier selection criteria and methods. Procedia Manufaturing, 32, 1024-1034.
  • Thanh H, T. (2015). A case study of intergrative creation of supplier relationship management process. Master Thesis. Depertment of Information and Service Econmoy, Aalto University Espoo, Finland.
  • Vos, F, G, S., Schiele, H., & Huttinger, L. (2016). Supplier satisfaction: Explanation and out-of-sample prediction. Business Research, 69, 4613-4623.
  • Yoon, J., & Moon, J. (2019). The Moderating effect of buyer purchasing strategy on the relationship between supplier transaction-specific investment and supplier firm performance. Business Research, 99, 516-523.
Year 2020, Volume: 19 , 11 - 22, 31.12.2020

Abstract

References

  • Amoako-Gyampah, K., Boakye, K, G. Adaku, E. & Famiyeh, S. (2019). Supplier relationship management and firm performance in developing economics: A moderated mediation analysis of flexibility capability and ownership structure. Production Economics. 208, pp. 160-170.
  • Asif, M., Jajja, M, S, S., & Searcy, C. (2019). Social compliance standarts: re-evaluating the buyer and supplier perspectives.Cleaner Production, 227, pp.457-471.
  • Bandara, S., Leckie, C., Lobo, A., & Hewege, C. (2017). Power and relationship quality in supply chains the case of Australian organics fruit and vegetable industry. Asia Pacific Journal of Marketing and Logistics. 29(3), pp. 501-518.
  • Boiko, A., Shendryk, V., & Boiko, O. (2019). Information systems for supply chain management: uncertainties risks and cyber security.Procedia Computer Science, 149, pp. 65-70.
  • Beikkhakhian, Y., Javanmardi, M., Karbasian, M., & Khayambashi, B. (2015). The application of ISM model in evaluating agile suppliers selection criteria and ranking suppliers using fuzzy TOPSIS-AHP methods. Expert Systems with Applications, 42(15–16), pp. 6224–6236.
  • Cerna, L., & Bukova, B. (2016). Supplier evaluation methodology in the logistic company. Procedia engineering, 134, pp. 377-385.
  • Damlin, A., Dietersdottir, K., Fornander, D., Brykt, J, M., Polyantseva, E., & Sundquist, D. (2012). Measuring buyer-supplier relationship performance. Retrieved from http://publications.lib.chalmers.se/records/fulltext/170612/local_170612.pdf
  • Gangurde, S, R., & Chavan, A, A. (2016). Benchmarking of purchasing practices using Kraljic approach. Benchmarking: An International Journal, 23(7), 1751-1779.
  • Gardner, T, A., Benzie, M., Borner, J., Dawkins, E., Fick, S., Garrett, R., Godar, J., Grimard, A., Lake, S., Larsen, R, K., Mardas, N., McDermott, C, L., Meyfroidt, P., Osbeck, M., Person, M., Sembers, T., Suavet, C., Strassburg, B., Trevisan, A., West, C., & Wolvekamp, P. (2019). Transparency and sustainability in global commodity supply chains. World Development. 121, 163-177.
  • Giannakis, M., Dubey, R., Vlachos, I., & Ju, Y. (2020). Supplier sustainability performance evaluation using the analytic network process. Cleaner Production. 247, 119439.
  • Graca, S, S., Barry, J, M., & Doney, P, M. (2015). Performance outcomes of behavioral attributes in buyer-supplier relationships. Journal of Business & Industrial Marketing, 30(7), 805-816.
  • Huang, S., Wang, C., & Chiou, C. (2014). FAHP application for green supplier selection in electronic industry. The Journal of Human Resource and Adult Learning, 10(2), 50-58.
  • Johnson, P, F., & Flynn, A, E. (2015). Purchasing and supply management, fifteenth edition. McGraw Hill.
  • Khan, S, A., Sarpong, S, K., Arhin, F, K., & Sarpong, H,K. (2018). Supplier sustainability performance evaluations and selection: a framework and methodology. Cleaner Production, 205, 964-979.
  • Kurniawan, R., Hasibuan., S., & Nugroho., R. E. (2017). Analisis Kriteria Dan Proses Seleksi Kontraktor Chemical Sektor Hulu Migas: Aplikasi Metode Delphi-Ahp. Jurnal Ilmu Manajemen, VII(2), 316–329.
  • Maestrini,V., Maccarrone, P., Caniato, F., & Luzzini, D. (2018). Supplier performance measurement systems: communication and reaction modes. Industrial Marketing Management, 74, 298-308.
  • Oghazi, P., Rad, F, F., Zaefarian, G., & Mortazavi, S. (2016). Unity is strength: A study of supplier relationship management integration. Business Research, 69, 4804-4810
  • Rajagopal., & Rajagopal, A. (2009). Buyer-supplier relationship and operational dynamics. Operation Research Society, 60, 313-320.
  • Taherdoost, H., & Brard, A. (2019). Analyzing the process of supplier selection criteria and methods. Procedia Manufaturing, 32, 1024-1034.
  • Thanh H, T. (2015). A case study of intergrative creation of supplier relationship management process. Master Thesis. Depertment of Information and Service Econmoy, Aalto University Espoo, Finland.
  • Vos, F, G, S., Schiele, H., & Huttinger, L. (2016). Supplier satisfaction: Explanation and out-of-sample prediction. Business Research, 69, 4613-4623.
  • Yoon, J., & Moon, J. (2019). The Moderating effect of buyer purchasing strategy on the relationship between supplier transaction-specific investment and supplier firm performance. Business Research, 99, 516-523.
There are 22 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Rizki Prakasa Hasıbuan This is me

Elisa Kusrını This is me

Publication Date December 31, 2020
Published in Issue Year 2020 Volume: 19

Cite

APA Hasıbuan, R. P., & Kusrını, E. (2020). Model Design Supplier Relationship Performance Measurement. The Eurasia Proceedings of Educational and Social Sciences, 19, 11-22.