Collaborative and ethical consideration in the vendor selection process

Few doubt the importance of supplier collaboration and integration decisions faced by management, as both supply chain management (SCM) and inventory management are critical to operations efficiency and global competitiveness. These strategic variables include extent of coordination from suppliers, the degree of information sharing with suppliers, and the level of organisational integration. Lean production principles alone may fail to synchronise with customer demand when companies need to develop long-term supplier relationships. Underpinning these relations is an expectation of socially and ethically responsible behaviour on the part of suppliers. Using a qualitative case-study method, the present study explored the importance of supplier relationships with H.J. Heinz and American Eagle Outfitters, as both firms have worked with their partners to ensure social and ethical responsibility.