Managing suppliers: when fewer can mean more

Authors: Goffin, Keith; Szwejczewski, Marek; New, Colin

Source: International Journal of Physical Distribution & Logistics Management, Volume 27, Number 7, 1997 , pp. 422-436(15)

Publisher: Emerald Group Publishing Limited

Buy & download fulltext article:

Price: $38.00 plus tax (Refund Policy)

Abstract:

Shows that manufacturing companies place a strong emphasis on the role of supply-chain management - the management of supplies, suppliers, inventory and distribution. Much of the literature talks about the trend to reduce supplier base. Database analysis gave empirical evidence of this trend in UK manufacturing companies - 201 companies from different industrial sectors cut their supplier base over the last four years, by 9 per cent in the household products sector and approximately 35 per cent in the process, engineering and electronics sectors. Reports on further research at four companies, looking at their experiences with suppliers and establishes that a key reason for supplier base reduction is to free time to manage the remaining suppliers more effectively. Identifies the criteria used for supplier selection and reasons why single-sourcing was avoided. Suggests that these findings on supplier management have implications for both researchers and managers in industry.

Keywords: Manufacturing; Supplier Relations; Suppliers; Supply-Chain Management

Document Type: Research article

DOI: http://dx.doi.org/10.1108/09600039710188486

Publication date: 1997-07-01