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

100%

Ferreira A. C. , Silva Â.

Engineering Management in Production and Services

2022

tom Vol. 14, no. 4

47--60

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.

Early Supplier Involvement Challenges in New Product Development Projects: a Bibliographic Overview of Lean Production in the Automotive Industry

80%

Dourado J. P. , Ferreira A. C. , Silva R.

Engineering Management in Production and Services

2024

tom Vol. 16, no. 3

115--128

The research is based on a literature review focused on early supplier involvement in new product development processes while working towards Lean production, especially for the automotive industry, where all actors must be fast and accurate. For practitioners, early supplier involvement is a topic that deserves serious attention since it impacts on decentralisation, promoting gains in quality, quantity, and execution time, as well as cost reduction and/or the acquisition of technical knowledge in developing products and production processes. The authors first introduce the key concepts, issues, and theoretical foundations concerning early supplier involvement challenges and new product development within organisations that affect their core processes and outsourcing strategies when seeking collaboration to develop more sophisticated technologies that a new product requires. The authors critically explore these issues, especially concerning earlier supplier involvement and its connection to the Lean philosophy, pursuing process tunning, considering production quantity, quality, and time, as well as avoiding penalising interruption within the automotive industry. The study provides the first critical review of potential challenges for a successful early supply involvement and, consequently, a successful new product development process decentralisation and the acquisition of technical knowledge in developing products and production processes needed to satisfy customers.