Authors: Mortensen, Mads Hovmøller; Freytag, Per Vagn; Arlbjørn, Jan Stentoft

Source: International Journal of Physical Distribution & Logistics Management, Volume 38, Number 10, 2008 , pp. 799-815(17)

Publisher: Emerald Group Publishing Limited

Abstract:

<B>Purpose</B> - Companies engage in several business relationships ranging from arm's length to close relationships based on trust and commitment. Several companies have recognized that their supply chain capabilities give them a competitive edge for delivering what customers want. However, often customers are not a homogeneous group requiring the same physical products and services. From a manufacturer's perspective, this demands that the issue of customer and supplier attractiveness should be considered. How can a company work with a differentiated approach: to be more attractive to selected customers or to suppliers? The purpose of this paper is to address this issue by proposing a process and maturity model for customer attractiveness in supply chains. <B>Design/methodology/approach</B> - The paper is based on two in-depth explorative case studies of Danish business-to-business manufacturers. The cases report both seller and buyer perspectives on attractiveness. <B>Findings</B> - The literature review on attractiveness reveals that the explanation of attractiveness has been described differently by a range of authors who are divided into three levels. This challenge calls for the development of a maturity model. Based on the developed maturity model, different sets of managerial implications are deducted. It is found that the parameters used at different attractiveness stages have to differ both in scope and in actual usage. <B>Research limitations/implications</B> - The research is explorative in nature and rests on two case studies. This does not provide a basis for statistical generalization. Future research should test the maturity model, through both more case studies and more questionnaire surveys. <B>Practical implications</B> - The maturity model helps companies manage their resources more efficiently. It provides a structured framework showing where to start and a foundation for an assessment of companies' current customer and supplier attractiveness. <B>Originality/value</B> - The paper is the first to develop a maturity model for customer and supplier attractiveness from a supply chain management perspective.

Keywords: Customers; Denmark; Suppliers; Supply chain management

Document Type: Research article

DOI: http://dx.doi.org/10.1108/09600030810926501

Publication date: 2008-11-07

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