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Buyer focus: evaluation of a new concept for supply chain integration

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  • Vaart, Taco van der
  • Donk, Dirk Pieter van

    (Groningen University)

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    Abstract

    The goal of integrated supply chains is to remove barriers to ease the flow of materials and information. This article concentrates on an important barrier: shared resources in a supply chain. The removal of these shared resources is closely related to the recently introduced concept of buyer focus. Buyer focus is described as the singling out of resources in order to supply one buyer along the whole range of its products. The value of buyer focus for supply chain integration is evaluated and in two cases illustrated. This article suggests that there are two extreme configurations in supply chains. On the one hand, suppliers with buyer-focused operations to enable high levels of integration in order to cope with uncertainty in volume, mix and leadtime. On the other hand, shared resources and low levels of integration, which are more likely in supply chains that are dominantly cost driven.

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    File URL: http://irs.ub.rug.nl/ppn/252292456
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    Bibliographic Info

    Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 03A25.

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    Date of creation: 2003
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    Handle: RePEc:dgr:rugsom:03a25

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    1. van der Vlist, Piet & Hoppenbrouwers, Jurgen J. E. M. & Hegge, Herman M. H., 1997. "Extending the enterprise through multi-level supply control," International Journal of Production Economics, Elsevier, vol. 53(1), pages 35-42, November.
    2. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    3. A. A. Tsay & W. S. Lovejoy, 1999. "Quantity Flexibility Contracts and Supply Chain Performance," Manufacturing & Service Operations Management, INFORMS, vol. 1(2), pages 89-111.
    4. Andy A. Tsay, 1999. "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, INFORMS, vol. 45(10), pages 1339-1358, October.
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