Supplier selection and procurement in SMEs: insights from the literature on key criteria and purchasing strategies

• Autorzy: Ferreira Ana Cristina , Silva Ângela

Identyfikatory

DOI

10.2478/emj-2022-0030

• Języki publikacji: EN

Abstrakty

EN

Effective strategic purchasing and supplier selection in companies provides businesses with leverage in acquiring goods and services. Thus, companies are in a better position to negotiate prices, discounts, delivery times and logistic channels. Also, strategic purchasing allows for performing a risk assessment to ensure the company’s profitability. This research aimed to identify the key currently deliberated by SMEs for supplier selection, considering such purchasing strategies as (1) cost reduction, (2) risk management, (3) global sourcing, (4) total quality management, (5) sustainable management and (6) supplier management. Also, it aimed to identify the emerging issues related to purchasing strategies. This research work performed a content analysis following a literature review. The Scopus indexation database was selected to conduct the document search. After the refinement process, based on 59 analysed documents, bibliometric assessment tools were applied to identify the key criteria for supplier selection. The TOP6 highest ranked criteria, which corresponds to 80 % of the most referred criteria, include: (1) the quality of goods; (2) compliance with the delivery times; (3) price/cost; (4) supplier reputation and/or market positioning; (5) geographical location; and (6) supplier performance history. The goal of strategic purchasing is to support the companies in achieving long-term goals through its integration into the company’s strategic planning process. It should be identified by the managers as an important resource. Several factors elevate the importance of strategic purchasing, namely, environmental protection, technology advances related to logistics 4.0, and risk assessment related to global sourcing and sustainability. The present research is in line with the findings of the referred literature, i.e., the application of prioritised criteria for the procurement and supplier selection operations in the industrial context, aiming to reduce lead times and logistic costs. The criteria must be aligned with the purchasing strategies adopted by the companies. The manuscript aims to demonstrate that the fundamentals of strategic purchasing strategies can contribute to the improvement of the SME supply process with the application of simple and cost-effective approaches.

Słowa kluczowe

EN

supply chain management; strategic purchasing; supplier selection

PL

zarządzanie łańcuchem dostaw; zakup strategiczny; wybór dostawców

• Wydawca: Oficyna Wydawnicza Politechniki Białostockiej
• Czasopismo: Engineering Management in Production and Services
• Rocznik: 2022
• Tom: Vol. 14, no. 4
• Strony: 47--60
• Opis fizyczny: Bibliogr. 40 poz., tab., wykr.

Twórcy

autor

Ferreira Ana Cristina

• University of Minho, Portugal Universidade Lusíada, Portugal

• https://orcid.org/0000-0002-4775-5713

autor

Silva Ângela

• Instituto Politécnico de Viana do Castelo, Portugal University of Minho, Portugal

• https://orcid.org/0000-0001-7448-291X

Bibliografia

• Adeinat, H., & Ventura, J. A. (2018). Integrated pricing and supplier selection in a two-stage supply chain. International Journal of Production Economics, 201, 193-202. doi: 10.1016/j.ijpe.2018.03.021
• Aminoff, A. (2007). Global Purchasing and Supply Management: A Research Agenda. IPSERA German Node conference, Wiesbaden, Germany.
• Azambuja, M. M., Ponticelli, S., & O’Brien, W. J. (2014). Strategic procurement practices for the industrial supply chain. Journal of Construction Engineering and Management, 140, 1-4. doi: 10.1061/(ASCE) CO.1943-7862.0000851
• Bai, C., Dallasega. P., Orzes, G., & Sarkis, J. (2020) Industry 4.0 technologies assessment: A sustainability perspective. International Journal of Production Economics, 229, 107776. doi: 10.1016/j.ijpe.2020.107776
• Banaeian, N., Nielsen, I. E., Mobli, H., & Omid, M. (2014). Green Supplier Selection in Edible oil Production by a Hybrid Model Using Delphi Method and Green Data Envelopment Analysis (GDEA). Management and Production Engineering Review, 5, 3-8. doi: 10.2478/mper-2014-0030
• Brewer, B., Ashenbaum, B., & Blair, C. W. (2019). Cross‐ Functional Influence and the Supplier Selection Decision in Competitive Environments: Who Makes the Call? Journal of Business Logistics, 40, 105-125. doi: 10.1111/jbl.12199
• Cho, M., Bonn, M. A., Giunipero, L., & Divers, J. (2019). Restaurant purchasing skills and the impacts upon strategic purchasing and performance: The roles of supplier integration. International Journal of Hospitality Management, 78, 293-303. doi: 10.1016/j.ijhm.2018.09.012
• Florez-Lopez, R. (2007). Strategic supplier selection in the added-value perspective: A CI approach. Information Sciences, 177, 1169-1179. doi: 10.1016/j.ins.2006.08.009
• Gao, H., Ju, Y., Santibanez Gonzalez, E. D. R., & Zhang, W. (2020). Green supplier selection in electronics manufacturing: An approach based on consensus decision making. Journal of Cleaner Production, 245, 118781. doi: 10.1016/j.jclepro.2019.118781
• Garzon, F. S., Enjolras, M., Camargo, M., & Morel, L. (2019) A green procurement methodology based on Kraljic Matrix for supplier`s evaluation and selection: a case study from the chemical sector. Supply Chain Forum, 20, 185-201. doi: 10.1080/16258312.2019.1622446
• Gualandris, J., Golini, R., & Kalchschmidt, M. (2014). Do supply management and global sourcing matter for firm sustainability performance? Supply Chain Management: An International Journal, 19, 258-274. doi: 10.1108/SCM-11-2013-0430
• von Haartman, R., & Bengtsson, L. (2015). The impact of global purchasing and supplier integration on product innovation. International Journal of Operations & Production Management, 35, 1295-1311. doi: 10.1108/IJOPM-03-2015-0128
• Haeri, S. A. S., & Rezaei, J. (2019). A grey-based green supplier selection model for uncertain environments. Journal of Cleaner Production, 221, 768-784. doi: 10.1016/j.jclepro.2019.02.193
• Haldar, A., Banerjee, D., Ray, A., & Ghosh, S. (2012). An Integrated Approach for Supplier Selection. Procedia Engineering, 38, 2087-2102. doi: 10.1016/j.proeng.2012.06.251
• Hasan, M. M., Jiang, D., Ullah, A. M. M. S., & Noor-EAlam, M. (2020). Resilient supplier selection in logistics 4.0 with heterogeneous information. Expert Systems with Applications, 139. doi: 10.1016/j.eswa.2019.07.016
• Hawkins, T. G., Gravier, M. J., & Muir, W. A. (2020). The role of supplier performance evaluations in mitigating risk: Assessing evaluation processes and behaviors. Industrial Marketing Management, 87, 2-17. doi: 10.1016/j.indmarman.2020.03.004
• Hosseini, S., Morshedlou, N., Ivanov, D., Sarder, M. D., Barker, K., & Khaled, A. A. (2019). Resilient supplier selection and optimal order allocation under disruption risks. International Journal of Production Economics, 213, 124-137. doi: 10.1016/j.ijpe.2019.03.018
• Huemer, L. (2006). Supply Management: Value Creation, Coordination and Positioning in Supply Relationships. Long Range Planning, 39, 133-153. doi: 10.1016/j.lrp.2006.04.005
• Kannan, D., Mina, H., Nosrati-Abarghooee, S., & Khosrojerdi, G. (2020) Sustainable circular supplier selection: A novel hybrid approach. Science of The Total Environment, 722, 137936. doi: 10.1016/j.scitotenv.2020.137936
• Konys, A. (2019). Methods supporting supplier selection processes - Knowledge-based approach. Procedia Computer Science, 159, 1629-1641. doi: 10.1016/j.procs.2019.09.333
• Lammgård, C., & Andersson, D. (2014). Environmental considerations and trade-offs in purchasing of transportation services. Research in Transportation Business & Management, 10, 45-52. doi: 10.1016/j.rtbm.2014.04.003
• Manavalan, E., & Jayakrishna, K. (2019). A review of Internet of Things (IoT) embedded sustainable supply chain for industry 4.0 requirements. Computers & Industrial Engineering, 127, 925-953. doi: 10.1016/j.cie.2018.11.030
• Marufuzzaman, M., & Ekşioğlu, S. D. (2017). Managing congestion in supply chains via dynamic freight routing: An application in the biomass supply chain. Transportation Research Part E: Logistics and Transportation Review, 99, 54-76. doi: 10.1016/j. tre.2017.01.005
• Matthess, M., Kunkel, S., Xue, B., & Beier, G. (2022). Supplier sustainability assessment in the age of Industry 4.0 – Insights from the electronics industry. Cleaner Logistics and Supply Chain, 4, 100038. doi: 10.1016/j.clscn.2022.100038
• Oroojeni, M. J. M., Darvishi, M., & Oroojeni, M. J. A. (2020) Green supplier selection for the steel industry using BWM and fuzzy TOPSIS: A case study of Khouzestan steel company. Sustainable Future, 2, 100012. doi: 10.1016/j.sftr.2020.100012
• Rashidi, K., Noorizadeh, A., Kannan, D., & Cullinane, K. (2020). Applying the triple bottom line in sustainable supplier selection: A meta-review of the state-of-theart. Journal of Cleaner Production, 269, 122001. doi: 10.1016/j.jclepro.2020.122001
• Resende, C. H. L., Geraldes, C. A. S., & Junior, F. R. L. (2021), Decision Models for Supplier Selection in Industry 4.0 Era: A Systematic Literature Review. Procedia Manufacturing, 55, 492-499. doi: 10.1016/j.promfg.2021.10.067
• Sánchez-Rodríguez, C., & Martínez-Lorente, Á. R. (2004). Quality management practices in the purchasing function: An empirical study. International Journal of Operations & Production Management, 24, 666- 687. doi: 10.1108/01443570410541984
• Saengchai, S., & Jermsittiparsert, K. (2019). Supply chain and firm performance: examining the moderating role of supply chain information strategy. Polish Journal of Management Studies, 20(2), 454-465.
• Schütz, K., Kässer, M., Blome, C., & Foerstl, K. (2020). How to achieve cost savings and strategic performance in purchasing simultaneously: A knowledge- based view. Journal of Purchasing and Supply Management, 26, 100534. doi: 10.1016/j.pursup.2019.04.002
• Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16, 1699-1710. doi: 10.1016/j.jclepro.2008.04.020
• Silva, Â., & Ferreira, A. C. (2021). Impact of Lean Tools on Companies During Industrial Engineering Projects Implementation: A Correlation Study. In Tavares Thomé, A. M., Barbastefano, R. G., Scavarda, L. F., Gonçalves dos Reis, J. C., & Castro Amorim, M. P. (Eds.), Industrial Engineering and Operations Management (pp. 79–91). Springer Nature Switzerland.
• Stekelorum, R., Laguir, I., & Elbaz, J. (2020). Cooperation with international NGOs and supplier assessment: Investigating the multiple mediating role of CSR activities in SMEs. Industrial Marketing Management, 84, 50-62. doi: 10.1016/j.indmarman.2019.04.001
• Szpilko, D. & Ejdys, J.(2022). European Green Deal – research directions. a systematic literature review. Economics and Environment, 81(2), 8-38. doi: 10.34659/eis.2022.81.2.455
• Taherdoost, H., & Brard, A. (2019) Analyzing the Process of Supplier Selection Criteria and Methods. Procedia Manufacturing, 32, 1024-1034. doi: 10.1016/j.promfg.2019.02.317
• Tunca, T. I., & Zenios, S. A. (2006). Supply auctions and relational contracts for procurement. Manufacturing & Service Operations Management, 8, 43-67. doi: 10.1287/msom.1060.0097
• Winter, S., & Lasch, R. (2016). Environmental and social criteria in supplier evaluation – Lessons from the fashion and apparel industry. Journal of Cleaner Production, 139, 175-190. doi: 10.1016/j.jclepro.2016.07.201
• Wong, A. S.-H. (1995). Total quality in purchasing. In Total Quality Management (pp. 181-184). Dordrecht: Springer Netherlands.
• Wong, J. T. (2020) Dynamic procurement risk management with supplier portfolio selection and order allocation under green market segmentation. Journal of Cleaner Production, 253, 119835. doi: 10.1016/j.jclepro.2019.119835
• Zimon, D., & Zimon, G. (2019). The Impact of Implementation of Standardized Quality Management Systems on Management of Liabilities in Group Purchasing Organizations. Quality Innovation Prosperity, 23, 60. doi: 10.12776/qip.v23i1.1210s

Uwagi

Opracowanie rekordu ze środków MEiN, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2022-2023).