Just-in-time purchasing: an empirical study of operational practices, supplier development and performance
This paper examines the role of supplier development in establishing and managing efficient buyer-supplier operational links. The paper develops and assesses a measurement instrument for "operational" and "supplier development" just-in-time purchasing practices, followed by an examination of the relationships between the two sets, and an investigation into whether the use of "operational" and "supplier development" practices has a bearing on higher plant performance. A plant-level survey was carried out on a sample of electronics and machinery plants. The study empirically: - documents the close connection between the buyer-supplier operational link and the buyer's practices for supplier development; - demonstrates that recourse to supplier development programs and their nature depend on the kind of vendor-vendee operational connection; - test whether different plant performance outcomes result from the implementing of different "operational" and "supplier development" practices. It demonstrates that better-performing plants exhibit more advanced design and logistic links with sources, more formalised vendor-rating and ranking procedures, greater use of organisational devices for supplier-organisational integration and place greater importance on supplier assistance and training.
Volume (Year): 28 (2000)
Issue (Month): 6 (December)
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References listed on IDEAS
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- Nassimbeni, Guido, 1996. "Factors underlying operational JIT purchasing practices: Results of an empirical research," International Journal of Production Economics, Elsevier, vol. 42(3), pages 275-288, April.
- Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
- Weber, Charles A. & Current, John R. & Benton, W. C., 1991. "Vendor selection criteria and methods," European Journal of Operational Research, Elsevier, vol. 50(1), pages 2-18, January.
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