Relationship between Supply Chain Structure Supplier Selection - Research Proposal Example

Contents Chapter One 3 1.Problem ment 3 2.Research objectives 3 3.Research questions 4 2.Chapter Two 5 2.1.Literature review 5 3.Chapter Three 10 3.0. Research method 10 3.1. Research design 10 3.2. Target group 10 3.3. Sample size 11 3.4. Data collection 11 3.5. Sources of data 11 3.6. Data analysis 12 References 13 Relationship between supply chain structure and supplier selection 1. Chapter One 1.1. Problem statement Supply chain management which is the process of managing the flow of supplies from the supplier to the manufacturers requires an efficient way. It is therefore, important to select the right supplier from the onset to ensure quality of products supplies is good, the supplies are damaged on the way to the way from the supplier and are delivered on time to avoid delays. For any manufacturer to ensure this then they must device a good criteria to select a supplier from the all the others. 1.2. Research objectives To find out how companies choose their suppliers to supply products To identify which criteria each company uses in its supplier selection and whether they work always or they have to change them from time to time To determine whether criteria chosen depends on the type of product sources, the industry the company is in or whether it is sources out of the country. To know whether manufacturers involve suppliers in their new developments since they are the ones responsible for supplying components for the end product. 1.3. Research questions What role do criteria play in supplier selection? How much does supplier selection impact on performance of manufacturers and suppliers? To what extent do manufacturers involve suppliers in continues development goals like designing new products? 2. Chapter Two 2.1. Literature review Supply chain structure is made up of several components which include, manufacturers, suppliers, warehouse, factories, distribution agents, transit etc (Abramowicz & zurada, 2000). the structure is a channel for supplying products that are raw for the purpose of reassembling to come with the a finished end product. Due to the important significant of the supply chain it is useful to ensure that the products are supplied in the right quantities, right moment, correct place and at a low cost to enhance manufacturer’s performance. Therefore supply chain management is the management of the physical path of these products and flow of communication from the purchasing level to distribution, delivery and production of the end product to be sold to the customers. This process requires strategizing and strengthening the relations between suppliers and purchasers and coming up with excellent criteria for choosing suppliers in order to reduce cost and increase supplier and manufacturing performance. According to the American journal of business titled building supply chains: a key to enhancing manufacturing performance, it shows the relationship that exists between using good criteria to select suppliers in the selection process and involving suppliers in inter-company product design and other activities on impacting on the supplier and purchasing company performance. These two elements which demonstrate the relationship between supply chain structure and supplier selection show how a manufacturer can achieve maximum performance and reduce the cost of purchasing supplies (Tracey & vonderembse, 2000). Supplier selection process which involves evaluating, reviewing and choosing the appropriate supply is an important part of the supply chain which should be considered very important. Manufacturers and purchasers should therefore, apply the most appropriate criteria when choosing suppliers to ensure they obtain the products that are of high quality, consistently available and delivered without delay. When effective supplier selection criteria are executed, suppliers are able to understand what it is the purchaser wants and respond to it by delivering the products needed. In addition the suppliers are able to improve on the quality of their products, reduce damages during transportation, and eliminate running out of stock at the manufacturing plants. This makes the selection process more competitive as suppliers have more understanding of what is expected from them and strive to achieve those requirements. These impacts directly on the performance of suppliers since they ensure their products are of high quality, efficient and available throughout. The total cost incurred by suppliers is also reduced due to the quality and available market hence no overstocking. Once the supplier performance is increased the performances of manufactures purchasing their product is also increased since they are able to produce quality products. They are able to deliver their products to customers on time because the suppliers deliver the supplies on time. This ensures that manufactures and customers also strengthen their relationship and build a trustworthy business network. The manufactures may achieve this by opting to advertise a supply tender with requirements listed in it. This will give the manufacturers an opportunity to select the most promising supplier from all those who will tender their bid. Involving suppliers in inter company activities like designing of products ensures continues improvements efforts are achieved since experts advice is sought from suppliers. Complex problems that affect both suppliers and manufacturers are able to be solved through sharing expertise and learning from each other. According to the American journal of business, in the past manufacturers made designs for new products without informing the suppliers yet these affected the suppliers directly. This is so since the new supplies that were used on the new designs were expected to be supplied by the suppliers. This created a crisis since the suppliers had to manufacture the supplies which would take time and cause a delay. However, involving suppliers in designing new products ensures that their expert knowledge is utilized in designing supplies which, will be used to make finished products with the new design. This ensures that all the components and assembling prior to supplying is delegated to the suppliers who are experts in designing these products. This increases efficiency, improves quality and performance of both suppliers and manufacturers. This cooperation makes it possible to accelerate the development process of products since the suppliers manufacture the supplies at ease. Also new technology is incorporated into the products manufacture which improves the performance of both suppliers and manufacturers. Lastly involving suppliers in designing new products reduces the cost of supplier selection process since they are working together and makes the order cycle short and quick. This ensures that supplier and purchaser relationship is strengthened and is long term for the improvement of both their performances (Ellegaard, 2002). It is evident that there is a co existence between the supply chain structure and supplier selection which determines the performance of a manufacturer to a great extent. The manufactures performance is dependent on the supplier supplying quality products, minimizing transit damage and delivering on time. Therefore, improving the supplier selection and involving suppliers in designing new products is vital in ensuring that supply chain chosen is the best. To ensure the right supply chain management, manufacturers must select the correct suppliers and involve them in their development plans. This minimizes the communication barriers which, exists between the suppliers and manufacturers since there is clear understanding on both parties. It also maximizes on technology use because suppliers who are experts in supplies offer their expertise and services to the manufacturers. The manufacturers are confident that they will deliver products to their customers without any delays because the suppliers they transact with are reliable and trustworthy. Due to the relationship they have fostered between them. 3. Chapter Three 3.0. Research method 3.1. Research design The research will be carried out in manufacturing companies who constantly source for supplies from suppliers in order to finish their products and deliver to their customers. The manufacturing companies will be chosen randomly from all regions of Austria and from different industries. The manufacturer companies will include multinationals, medium and small sized to ensure all categories are represented. The research will be conducted both quantitatively and qualitatively to come up with credible data which will be accurate. The companies’ names will not be released to the public rather the data will be used strictly for research to ensure confidentiality. The research findings will be presented in a report forms which will include figures, graphs and charts. 3.2. Target group The departments in charge of sourcing for the supplies will be the one which will be targeted since they are in charge of selecting suppliers and ensuring the company chooses the best supplier. They are also in charge of inviting suppliers to the company activities to meet with the engineers designing new products. This will ensure that the results analyzed will reflect the reality on ground. 3.3. Sample size The research will target 200 manufacturing companies that will be selected from different industries and categories. It will target 30 companies that are designing new products to find out if they are including any suppliers on this issue. 3.4. Data collection Data will be collected from the participating departments for the purpose of this research through questionnaires which will have standard questions on supply chain structure and supplier selection. Questions will have options which each company will pick the option that suits their procurement procedures. Interviews will be conducted and recorded too to ensure that the correct data is obtained. These methods of data collection will be quicker to collect data and good for reference later. 3.5. Sources of data The data will be from primary source which is the participating departments from all the manufacturing companies since they cannot give out their confidential documents for the research. 3.6. Data analysis Data that will be collected will be analyzed, documented, grouped together and represented in a report from using simple understandable English to make sure that all kind of people can access it. Data will be represented using charts, figures, percentages and tables which will be understandable by all people. References Abramowicz, W., & Zurada, J. (2000). Knowledge discovery for business information systems. Dordrecht, Kluwer Academic Publishers. Ellegaard, C. (2002), "Managing industrial buyer-supplier relations - the case for attractiveness", Integrated Manufacturing Systems, 14/4, 2003, pp. 346-356. Supply chain structure Tracey, M. & Vonderembse, M. A. (2000). Building Supply Chains: A Key to Enhancing Manufacturing Performance. Mid American Journal of Business. 15, 11-20. Read More