IJERT-Supplier-Buyer Relationships In Indian Manufacturing Environment: An Empirical Study (original) (raw)

Managing Relationship with Supplier(s): An Exploratory Study of Select Indian Manufacturing Firms

Manufacturing industry is said to be partially driven by the component/input suppliers. The idea of developing and managing relationships with suppliers has been intensified due to the occurrence of rapid globalization and technological innovation. A paradigm shift can be witnessed in firms' approaches towards supplier management which is gradually moving from a transaction-based arm's-length approach to a relationship-based cooperative approach. Firms apparently, have started adapting various practices to strengthen the relationship with their respective supplier(s) to ensure the smooth functioning without any operational difficulties. The present study explores various practices pertaining to Supplier Relationship Management (SRM) from Relationship Marketing(RM) perspective, in the context of Indian manufacturing sector. The study is exploratory in nature where in the unit of analysis is collaborative manufacturer-supplier relationship. Information was collected through a self-administered questionnaire-based survey from a sample of 206 executives across levels of purchase department from select manufacturing firms in India. Data analysis, both descriptive as well as inferential were carried out with SPSS. Subsequently, the theoretical and managerial implications of the study are discussed.

Framework for Study of Supplier Relationships in Indian Automotive Supply Chains

Indian automotive industry has increasingly adopted global supply chain best practices including supplier relationship as a management imperative, in the last two decades. Increased competition, globalisation, widespread outsourcing, use of information technology and rapid technological advances have contributed in supplier relationship development with the objective to achieve competitive advantage and a high level of performance. It is evident that only if mutual benefits accrue to both Vehicle Assemblers (VA) and their suppliers, the partnership between them would be meaningful and effective. Also, VAs have necessarily, to invest considerable resources and effort in achieving collaboration with their suppliers and cost-effectiveness becomes an issue which leads to supply base rationalisation and a segmented approach. Therefore understanding the issues involved and identifying focus areas for successful supplier relationships becomes an imperative. This paper , based on an exploratory study, delves into the VA-supplier interface in Indian automobile supply chains, examines various theoretical and practical dimensions, in order to identify strategic imperatives (key impact drivers), Supplier Management Orientation (SMO) of VAs, adoption of Supplier Development Practices, extent of VA-supplier partnerships and mutual benefits accruing to both entities. Based on this a framework for holistically studying the VA-supplier interface is proposed.

SUPPLIER RELATIONSHIP MANAGEMENT ISSUES AND CHALLENGES IN INDIAN AUTOMOBILE INDUSTRY

The main rationale for the Indian economy and the global economy's contributor is considered to be an automotive industry. An Organization's main & important role is played by the Supplier Relationship Management (SRM) as the suppliers decide the cost, quality, reliability, product's delivery, accessibility & services and hence the main focus and subject of this study are on the practices of the supplier relationship management that have been followed by the automobile industries and also on the difficulties faced in the pursuit of the practice of SRM to uplift the organization's performance. This study deals with an approach of explanatory design and the Questionnaires are used as an instrument to capture the main data. Furthermore, the study also uses Descriptive statistics with the help of Statistical Package for Social Scientists (SPSS) for the quantitative data analysis. To link the dependent and independent variables a conceptual framework is developed and SRM implementation results in either the complete rise of the organization's relationship with the suppliers or can also lead to a poor supplier's management inside the organization, but still there exists a lot of confusion about SRM and its implementations. The conclusion of the study reveals that the knowledge of the suppliers is a must to rise from the problems faced in Supplier Relationship Management, Suppliers cooperation, and Management of time is the key point to improve the SRM performance.

Effect of Trust , Satisfaction and Other Relationship Dimensions on Supplier Relationship Management

2014

Supplier relationship management is working collaboratively with those suppliers that are vital to the success of the organization, to maximize the potential value of relationships. This in turn increases the overall effectiveness of the organization as well as that of supplier that further on results in the overall value of the product/ service generated. Many growing companies focus on the price of their suppliers, along with the price there are many factors to be considered in the supplier relationship like trust, benevolence, satisfaction, communication and commitment. A questionnaire was prepared based on the literature review so select the most prevailing attributes in the Indian scenario, followed by a survey among the Indian organizations. This paper reports the findings of a survey carried out in 28 Indian organizations to ascertain the impact of various relationship dimensions in buyer-supplier relationship. The main findings of this survey are that in spite of the present...

An empirical study on supply chain management in India: the perspective of original equipment manufacturers and suppliers

European J. of Industrial Engineering, 2010

Supply Chain Management (SCM) is a key strategic approach for increasing organisational effectiveness and the realisation of organisational goals. Effectively selecting and evaluating suppliers and managing their involvement in the supply chain are some of the capabilities that enable Original Equipment Manufacturers (OEMs) to achieve customer satisfaction. At the same time, the suppliers have a significant and direct impact on the performance of buyers. A sustained supplier-manufacturer relationship cannot be possible without tangible benefits accrued to both the partners. The present study, by viewing the supply chain from the perspective of the OEMs and the suppliers, identifies the critical dimensions of SCM and the measures of performance. Reliable and validated instruments are developed. Conceptual models are proposed. The effect of the moderator, such as 'selection', 'long-term relationships', etc. (OEM's perspective) and 'supply chain orientation' (supplier's perspective) on the relationship between the critical dimensions of SCM and the performance measures, are investigated. The investigations reveal that from the perspectives of the OEM and supplier, the moderator has a significant and positive effect on the relationship between the critical dimensions of SCM and the performance measures. The simultaneous effect of all the moderators on the above relationship is also significant in the case of the OEM.

Buyer‐supplier relationships

International Journal of Physical Distribution & Logistics Management, 2006

PurposeTo analyze the impact of supplier selection and buyer‐supplier engagement on the performance benefits attributable to buyer‐supplier relationships, and the effect of these benefits on broader measures of buyer performance.Design/methodology/approachAnalysis is conducted using a structural equation model using survey data.FindingsResults demonstrate the positive influence of engagement and supplier selection on relationship performance. They also demonstrate that the success of the relationship directly and positively affects buyer performance.Research limitations/implicationsAdditional analysis is required to examine whether the results hold for specific industry or purchase scenarios, and to identify other dimensions of the constructs of interest.Practical implicationsBuyers should pay attention to selecting the right suppliers and developing the infrastructure that will enable successful buyer‐supplier relationships.Originality/valueThe paper provides empirical evidence of ...

Buyer supplier perspectives on supply chain relationships

International Journal of Operations & Production Management, 2010

Eamonn is on the academic staff of the National Institute of Technology Management (NITM) in University College Dublin (UCD), and is active in teaching, research and the business development activities of the Institute. Prior to joining UCD, he was Engineering Director for Bristol Myers Squibb, and was responsible for the design, installation and maintenance of process plants for developing and manufacturing anti-cancer drugs. He also worked as a consultant advising major multinationals and government agencies in asset management and procurement process improvement.

Buyer-supplier relationships: alternative research approaches

Buyer-supplier relationships have received considerable attention in both the purchasing and the marketing literature. This paper assesses the literature by describing a number of key articles and the research approach taken in the articles. The research approaches taken in the marketing literature, the purchasing literature and by the International Marketing and Purchasing Group (IMP Group) are compared, and advantages and disadvantages of these approaches are described. Gaps in the research are identified leading to suggestions for future research. Closer cooperation between researchers in the purchasing and the marketing field is suggested to capitalize on the relative strengths of each discipline. © 1997 Elsevier Science Ltd