case study of supplier relationship management

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Building Deep Supplier Relationships

• Jeffrey Liker
• Thomas Y. Choi

Two Japanese automakers have had stunning success building relationships with North American suppliers—often the same companies that have had contentious dealings with Detroit’s Big Three. What are Toyota and Honda doing right?

Reprint: R0412G

More and more businesses are counting on their suppliers to lower costs, improve quality, and develop innovations faster than their competitors’ suppliers can. To this end, many experts agree that American firms, like their Japanese rivals, should build supplier keiretsu: networks of vendors that learn, improve, and prosper in sync with their parent companies.

As history has shown, however, that’s easier said than done. Some U.S. corporations created supply chains that superficially resembled those of their Japanese competitors, but they didn’t alter the nature of their relationships with suppliers. As a result, relations between U.S. manufacturers and their suppliers have sunk to the lowest levels in decades.

But reports of keiretsu’s demise are overblown. The Japanese supplier-partnering model is alive and well—in North America as well as Japan. During the past ten years, automakers Toyota and Honda have struck successful partnerships with some of the same suppliers that are at odds with the Big Three and created effective keiretsu across Canada, the United States, and Mexico.

So how do Toyota and Honda do it? The authors, who have studied the American and Japanese automobile industries for more than 20 years, found that Toyota and Honda have built great supplier relationships by following six steps. First, they understand how their suppliers work. Second, they turn supplier rivalry into opportunity. Third, they monitor vendors closely. Fourth, they develop those vendors’ capabilities. Fifth, they share information intensively but selectively. And sixth, they help their vendors continually improve their processes.

Toyota and Honda succeed because they consistently follow all six directives. Thus, the automakers have not only stayed in the game with the Big Three but have also redefined the playing field.

No corporation needs to be convinced that in today’s scale-driven, technology-intensive global economy, partnerships are the supply chain’s lifeblood. Companies, especially in developed economies, buy more components and services from suppliers than they used to. The 100 biggest U.S. manufacturers spent 48 cents out of every dollar of sales in 2002 to buy materials, compared with 43 cents in 1996, according to Purchasing magazine’s estimates. Businesses are increasingly relying on their suppliers to reduce costs, improve quality, and develop new processes and products faster than their rivals’ vendors can. In fact, some organizations have started to evaluate whether they must continue to assemble products themselves or whether they can outsource production entirely. The issue isn’t whether companies should turn their arms-length relationships with suppliers into close partnerships, but how. Happily, the advice on that score is quite consistent: Experts agree that American corporations, like their Japanese rivals, should build supplier keiretsu: close-knit networks of vendors that continuously learn, improve, and prosper along with their parent companies. (Incidentally, we don’t mean that companies should create complex cross holdings of shares between themselves and their suppliers, the way Japanese firms do.)

• Jeffrey K. Liker is a professor of industrial and operations engineering at the University of Michigan and is author, with Timothy N. Ogden, of Toyota Under Fire .
• Thomas Y. Choi is professor of supply chain management at Arizona State University’s W. P. Carey School of Business. He is co-director of Complex Adaptive Supply Networks Research Accelerator (CASN-RA). His most recent book is The Nature of Supply Networks (Oxford University Press, 2023).

Partner Center

• Advanced Search

Supplier relationship management: a case study in the context of health care

New citation alert added.

This alert has been successfully added and will be sent to:

You will be notified whenever a record that you have chosen has been cited.

To manage your alert preferences, click on the button below.

New Citation Alert!

Please log in to your account

Information & Contributors

Bibliometrics & citations, view options.

• Mettler T (2018) Transformation of the Hospital Supply Chain International Journal of Healthcare Information Systems and Informatics 10.4018/jhisi.2011040101 6 :2 (1-13) Online publication date: 16-Dec-2018 https://dl.acm.org/doi/10.4018/jhisi.2011040101

Index Terms

Applied computing

Electronic commerce

Enterprise computing

Enterprise information systems

Enterprise resource planning

Life and medical sciences

Health care information systems

Operations research

Information systems

Information systems applications

World Wide Web

Online advertising

Web applications

Social and professional topics

Professional topics

Management of computing and information systems

Project and people management

Recommendations

E-procurement in hospital pharmacies: an exploratory multi-case study from switzerland.

Structural changes and increasing market dynamics in the health care sector intensify the hospitals' needs for cost-savings and process optimization. The adoption of new information and communication technology (ICT) is thereby seen as opportunity to ...

Transformation of the Hospital Supply Chain: How to Measure the Maturity of Supplier Relationship Management Systems in Hospitals?

Increased competition and market dynamics in healthcare have led to a stronger need for a strategy to amend customer relationships and for a clear understanding of how healthcare providers can improve their collaboration with key suppliers. Under the ...

SPA: a smart phone assisted chronic illness self-management system with participatory sensing

The medical system has not been able to effectively adapt to the dramatic transformation in public health challenges; from acute to chronic and lifestyle-related illnesses. Although acute illnesses can be treated successfully in an office or hospital, ...

Information

Published in.

Facultad de Ingeniería, Universidad de Talca

Talca, Chile

Publication History

Author tags.

• business networking
• e-collaboration
• e-procurement
• health care
• supplier relationship management
• supply management

Contributors

Other metrics, bibliometrics, article metrics.

• 1 Total Citations View Citations
• 0 Total Downloads
• Downloads (Last 12 months) 0
• Downloads (Last 6 weeks) 0

View options

Login options.

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

Share this publication link.

Copying failed.

Share on social media

Affiliations, export citations.

• Please download or close your previous search result export first before starting a new bulk export. Preview is not available. By clicking download, a status dialog will open to start the export process. The process may take a few minutes but once it finishes a file will be downloadable from your browser. You may continue to browse the DL while the export process is in progress. Download
• Download citation
• Copy citation

We are preparing your search results for download ...

We will inform you here when the file is ready.

Your file of search results citations is now ready.

Your search export query has expired. Please try again.

SupplyChainToolbox.com is your one-stop resource for all things related to supply chain management, offering in-depth articles, software reviews, and expert advice.

• Software Reviews
• Comparisons

Supplier Relationship Management: A Practical Guide to Building Strong Partnerships and Reducing Supply Chain Risks

Introduction:.

In the world of supply chain management, forging and maintaining strong supplier relationships is critical to achieving a resilient and responsive supply chain. This tutorial will discuss the importance of supplier relationship management (SRM) and provide practical strategies and examples for building successful partnerships that help reduce supply chain risks. We will explore various aspects of SRM, such as supplier segmentation, performance measurement, and collaboration, and discuss how to apply these concepts to your own supply chain.

Understanding Supplier Relationship Management

1.1. What is Supplier Relationship Management?

Supplier Relationship Management is a strategic approach to managing an organization’s interactions with its suppliers. The goal of SRM is to develop long-term, mutually beneficial relationships with suppliers that enable both parties to achieve their business objectives. By fostering strong supplier partnerships, organizations can improve their supply chain performance, reduce costs, and mitigate risks.

1.2. Why is SRM Important?

A well-executed SRM strategy can provide numerous benefits to an organization, including:

• Improved supplier performance
• Reduced supply chain risks
• Enhanced collaboration and innovation
• Greater cost savings and efficiencies
• Increased customer satisfaction

Key Strategies for Effective Supplier Relationship Management

2.1. Supplier Segmentation

One of the first steps in developing a successful SRM strategy is to segment your suppliers based on their strategic importance and the complexity of their products or services. By categorizing suppliers into different tiers, you can allocate resources and tailor your approach to managing each supplier relationship.

Example: A simple supplier segmentation model might include the following categories:

• Tier 1: Strategic suppliers that provide critical products or services and have a high impact on your business
• Tier 2: Tactical suppliers that offer important but not critical products or services, and have a moderate impact on your business
• Tier 3: Operational suppliers that provide non-critical products or services, and have a low impact on your business

Table 1: Example of Supplier Segmentation

2.2. Performance Measurement

Measuring supplier performance is essential for identifying areas of improvement and ensuring that suppliers are meeting your organization’s needs. Establish key performance indicators (KPIs) that align with your business objectives and monitor them regularly to track supplier performance.

Example: Common supplier performance KPIs might include:

• On-time delivery performance
• Order accuracy
• Cost reduction
• Quality metrics (e.g., defect rates, warranty claims)

Table 2: Example of Supplier Performance KPIs

2.3. Collaboration

Fostering a collaborative relationship with suppliers can lead to greater innovation, improved communication, and better overall performance. Engage with your suppliers regularly to share information, discuss challenges, and identify opportunities for improvement.

Example: A company might establish a collaborative forum with its strategic suppliers to discuss industry trends, share best practices, and jointly develop new products or services. By working together, both parties can benefit from shared knowledge and resources, leading to a more successful partnership.

2.4. Risk Management

Proactively managing supply chain risks is a critical aspect of SRM. Identify potential risks associated with each supplier, assess their likelihood and impact, and develop contingency plans to mitigate those risks.

Example: A company might conduct a risk assessment for its suppliers and identify potential risks such as supplier financial instability, natural disasters, or geopolitical instability. By understanding these risks, the company can develop strategies to minimize their impact, such as diversifying its supplier base or implementing backup plans in case of disruptions.

Table 3: Example of Supplier Risk Assessment

Real-Life Example : Toyota and Supplier Relationship Management

Toyota, one of the world’s leading automakers, has long been recognized for its commitment to strong supplier relationships. The Toyota Production System (TPS), which focuses on continuous improvement, efficiency, and collaboration, has been a key driver of the company’s success. Toyota’s approach to supplier relationship management is based on mutual trust, understanding, and collaboration.

3.1. Supplier Selection and Segmentation

Toyota is known for its rigorous supplier selection process, which emphasizes long-term relationships and shared growth. The company carefully evaluates suppliers based on criteria such as cost, quality, delivery, and technological capability. Once a supplier is selected, Toyota segments them based on their strategic importance and the level of collaboration required, ensuring that the most critical suppliers receive the highest level of attention.

3.2. Supplier Performance Measurement

Toyota’s supplier performance measurement system is centered on its philosophy of “jidoka,” which means automation with a human touch. This approach involves monitoring supplier performance closely and providing feedback to help suppliers improve their operations. Toyota’s system allows for continuous improvement and helps suppliers align their objectives with those of the automaker.

3.3. Collaboration and Communication

Toyota fosters close collaboration and open communication with its suppliers, often involving them in the early stages of product development. This approach not only helps ensure that suppliers are fully aligned with Toyota’s requirements but also promotes innovation and reduces the likelihood of supply chain disruptions. The automaker also hosts regular meetings and workshops with suppliers to facilitate the exchange of ideas, address potential issues, and share best practices.

By applying these principles, Toyota has been able to maintain strong supplier relationships, resulting in a more efficient and responsive supply chain. This example demonstrates how effective supplier relationship management can lead to long-term benefits for both the buyer and supplier.

Conclusion:

In conclusion, effective supplier relationship management is a critical aspect of supply chain management that can lead to reduced costs, improved performance, and reduced risks. By implementing strategies such as supplier segmentation, performance measurement, collaboration, and risk management, organizations can build strong supplier partnerships and ensure a resilient and responsive supply chain.

4. Interesting Links:

• The Importance of Supplier Relationship Management in Supply Chain
• Supplier Relationship Management Strategies for Success
• “Supplier Relationship Management: Unlocking the Hidden Value in Your Supply Base” by Jonathan O’Brien .
• “The Supply Chain Revolution: Innovative Sourcing and Logistics for a Fiercely Competitive World” by Suman Sarkar .

4.2. Professional Organizations and Certifications

• Chartered Institute of Procurement & Supply (CIPS)

By leveraging these additional resources and applying the strategies discussed in this tutorial, you can strengthen your supplier relationships, improve supply chain performance, and reduce risks.

case study collaboration performance measurement risk management supplier relationship management supplier segmentation Supply Chain Management

Geef een reactie Reactie annuleren

Het e-mailadres wordt niet gepubliceerd. Vereiste velden zijn gemarkeerd met *

Mijn naam, e-mail en site bewaren in deze browser voor de volgende keer wanneer ik een reactie plaats.

Recent Posts

• Revolutionizing Supply Chains: The Power of Demand Sensing in Modern Business
• The Role of Emerging Technologies in Modern Supply Chain Management: Spotlight on Artificial Intelligence
• Brexit and its Unforeseen Consequences on Global Supply Chains
• Going Lean: How to Implement Lean Principles in Your Supply Chain
• Blockchain Technology in Supply Chain Management: A Comprehensive Guide to Enhancing Transparency, Security, and Efficiency

Recent Comments

• januari 2024
• Inventory & Supply Chain Management
• Supply Chain and Logistics
• Supply Chain Management
• Supply Chain Planning
• Supply Chain Risk Management
• Sustainability in Supply Chain Management

© 2024 Supplychaintoolbox

Thema gemaakt door Anders Noren — Boven ↑

• More Networks

Import Page Template

• Our Strategy
• Celebrating 25 Years of WorldCC
• Sally Guyer
• Tim Cummins
• Julian Davis
• Julia Duryee
• Katheryn Lacey
• Nikki Mackay
• Our Governance
• Association Objectives
• Latest Research
• Commissioned & Partnered Research
• Capability Maturity Analysis & Benchmark
• Contract Design & Simplification
• Competency Management Program
• Contract Terms Analysis & Benchmark
• Contracting Health Check
• Contracting Standards
• Contracting Principles
• SaaS Contracting Guide
• Contract Design Pattern Library
• Software Comparison Tool
• Tips and Checklists
• Content Hub
• News from WorldCC
• Commitment Matters
• Stronger Together
• Contracting Excellence Journal
• Women and Negotiation
• Fundamentals of Commercial & Contract Management
• Commercial & Contract Management Certification Program
• Supplier Relationship Management Certification
• Modern Procurement Programs
• Business Ethics
• Commercial Awareness Program
• Contract Management MOOC
• Introduction to Relationship Management
• Managing Contracts Virtually
• Negotiation Master Classes
• Statement of Work
• Agile Contracting Workshop
• Agility Workshop
• Contract Design Workshops
• Modern Contracting Workshops
• Negotiation
• Post Award Excellence Workshops
• Relational Contracting Workshops
• Continuing Professional Development (CPD)
• Apprenticeships
• Why Choose Commerce and Contracting
• Career development
• Secure a job
• Americas 2024
• Virtual Events
• Member Meetings
• The Negotiation Room
• Innovation and Excellence Awards
• Leaders of the Future
• Events Calendar
• Student Connect
• Enterprise and Corporate
• Service Provider and Vendor
• Sponsorship and Partner Opportunities
• Academic Symposium
• Inspiring Women

Case study: optimising partnerships with supplier relationship management

In the ever-evolving procurement and supplier engagement landscape, North West London Procurement Services (NWLPS) has emerged as a frontrunner, pioneering a comprehensive Supplier Relationship Management (SRM) framework. This strategic initiative, meticulously aligned with the organisation's 2022 - 2025 “Stronger Together” strategy, aimed to strengthen partnerships, maximise value, and stimulate innovation with key suppliers. This case study explores the in-depth design, execution, and impact of NWLPS's SRM framework, outlining the key components and phases that propelled its success.

Why Supplier Relationship Management (SRM)?

In the past, NWLPS viewed suppliers through a narrow procurement lens, focusing solely on the transactional outcome of contracts, not on building long-term relationships with their suppliers. However, NWLPS recognised that strategic suppliers are increasingly crucial in enabling service user satisfaction and care delivery. It became clear that these partnerships needed to evolve beyond mere procurement into deeper, outcome-driven relationships capable of unlocking shared goals, driving innovation, and mitigating ecosystem risks.

Without effective SRM capabilities, exchanges were happening in isolation, with no comprehensive view of strategic supplier performance, continuity planning, or the ability to accelerate key growth initiatives. Formalising an SRM approach addresses these gaps by establishing a structured process for nurturing supplier relationships in alignment with the overall business strategy.

Project Objectives

At the heart of NWLPS SRM framework lies a set of well-defined objectives that aim to transform supplier relationships into strategic partnerships that drive business growth and operational excellence. This approach to SRM extends beyond transactional engagements to enable NWLPS to maximise the value derived from supplier relationships.

• Strengthening partnerships: Fostering mutually beneficial collaborations to maximise value.
• Enhancing innovation: Pursuing strategic collaboration with suppliers to develop cutting-edge solutions.
• Optimising cost efficiency: Leveraging economies of scale and streamlining processes to reduce expenditures.
• Improving operational efficiency: Fostering transparent communication to eliminate inefficiencies.

The A natomy of NWLPS's SRM Framework

• Supplier Segmentation: Effective segmentation facilitates decision-making and prioritisation of resources for improved scalability and flexibility.
• Relationship Management: Cultivating mutually beneficial partnerships through proactive engagement, collaboration and active communication.
• Supplier Performance Management: Monitor and develop their suppliers to ensure good service at the optimum total cost of ownership.
• Supplier Risk Management: Implement processes to monitor, evaluate, and mitigate supplier risks.

SRM Skills Academy

61% of Chief Procurement Officers highlight "Increasing level of supplier collaboration" as their top priority for 2023, (Deloitte, 2023).

A crucial pillar of the SRM framework is developing the skills and mindset across NWLPS to manage strategic supplier relationships effectively. To enable this, a dedicated SRM Academy has been designed to focus on strengthening SRM within the Category Divisions.

World Commerce & Contracting (WorldCC) SRM Certification

The development of a skilled team to steward long-term supplier partnerships is key to extracting and expanding the value delivered through the SRM approach. NWLPS opted to enrol staff on the WorldCC SRM Certification programs; the only industry-recognised accredited programs to provide a comprehensive, relevant, and flexible learning experience. The Certifications enabled NWLPS staff to build competencies to:

• Structure and lead collaborative supplier engagements
• Employ value-based supplier segmentation
• Set clear performance expectations
• Govern for risk and continuity Identify and execute innovation opportunities
• Demonstrate critical problem-solving and conflict resolution
• Understand data analytics to inform SRM
• Utilise digital tools and AI enablement Consider sustainable procurement best practices Improve contract and performance optimization

Lee Jackson, Managing Director – North West London Procurement Services commented, “The WorldCC SRM Certification ensures consistency in our supplier practices and provides our team with more knowledge to effectively manage supplier relationships. It serves as a tool for enhancing our procurement outcomes which in turn helps our patients at the NHS and local communities.”

Achievements to date

Since embarking on its SRM journey, NWLPS has achieved significant milestones, laying a solid foundation for strong, value-driven supplier relationships, from within its Manage & Enable division, led by Lynda Hopkins, Procurement Excellence Director. From identifying key strategic partners to establishing robust performance metrics and fostering innovation, the NWLPS team has made consistent progress in transforming its supplier ecosystem.

To download the case study in full please visit: https://www.worldcc.com/Portals/IACCM/Files/Case Study - NHS NWLPS.pdf  

• Excellence Journal

More resources

Information

• Author Services

Initiatives

You are accessing a machine-readable page. In order to be human-readable, please install an RSS reader.

All articles published by MDPI are made immediately available worldwide under an open access license. No special permission is required to reuse all or part of the article published by MDPI, including figures and tables. For articles published under an open access Creative Common CC BY license, any part of the article may be reused without permission provided that the original article is clearly cited. For more information, please refer to https://www.mdpi.com/openaccess .

Feature papers represent the most advanced research with significant potential for high impact in the field. A Feature Paper should be a substantial original Article that involves several techniques or approaches, provides an outlook for future research directions and describes possible research applications.

Feature papers are submitted upon individual invitation or recommendation by the scientific editors and must receive positive feedback from the reviewers.

Editor’s Choice articles are based on recommendations by the scientific editors of MDPI journals from around the world. Editors select a small number of articles recently published in the journal that they believe will be particularly interesting to readers, or important in the respective research area. The aim is to provide a snapshot of some of the most exciting work published in the various research areas of the journal.

Original Submission Date Received: .

• Active Journals
• Find a Journal
• Proceedings Series
• For Authors
• For Reviewers
• For Editors
• For Librarians
• For Publishers
• For Societies
• For Conference Organizers
• Open Access Policy
• Institutional Open Access Program
• Special Issues Guidelines
• Editorial Process
• Research and Publication Ethics
• Article Processing Charges
• Testimonials
• Preprints.org
• SciProfiles
• Encyclopedia

Article Menu

• Subscribe SciFeed
• Recommended Articles
• Google Scholar
• on Google Scholar
• Table of Contents

Find support for a specific problem in the support section of our website.

Please let us know what you think of our products and services.

Visit our dedicated information section to learn more about MDPI.

JSmol Viewer

Supplier relationship management: a case study in the context of health care.

Share and Cite

Mettler, T.; Rohner, P. Supplier Relationship Management: A Case Study in the Context of Health Care. J. Theor. Appl. Electron. Commer. Res. 2009 , 4 , 58-71. https://doi.org/10.4067/S0718-18762009000300006

Mettler T, Rohner P. Supplier Relationship Management: A Case Study in the Context of Health Care. Journal of Theoretical and Applied Electronic Commerce Research . 2009; 4(3):58-71. https://doi.org/10.4067/S0718-18762009000300006

Mettler, Tobias, and Peter Rohner. 2009. "Supplier Relationship Management: A Case Study in the Context of Health Care" Journal of Theoretical and Applied Electronic Commerce Research 4, no. 3: 58-71. https://doi.org/10.4067/S0718-18762009000300006

Article Metrics

Article access statistics, further information, mdpi initiatives, follow mdpi.

Subscribe to receive issue release notifications and newsletters from MDPI journals

Supplier relationship management: Guide and expert tips

It’s no secret that successful businesses are built on relationships. However, many organizations focus on developing and improving customer relationships, while overlooking the importance of supplier relationships. But, that’s changing. As businesses turn their attention to supply chain resilience, supplier relationship management provides a clear path to stability and value. As such, it’s a key part of \strategic sourcing.

Indeed, investing in supplier relationships can improve outcomes both for your business and your vendor partners. In this blog, we’ll explore supplier relationship management. First, we’ll define supplier relationship management, share its history and outline key benefits. Next, we’ll walk through how to get started and expert advice for improving supplier relationships. Finally, we’ll share additional resources for further exploration.

Supplier relationship management basics

How to implement a supplier relationship management program.

• 11 experts share supplier management best practices
• Resources for supplier relationship management

What is supplier relationship management?

Supplier relationship management, also called vendor relationship management or abbreviated to SRM, is the practice of proactively building collaborative, mutually beneficial partnerships with suppliers.

Sometimes shortened to SRM, the goal of supplier relationship management is to maximize the value of each vendor relationship. Indeed, the focus on value rather than cost is an important distinction of the practice. Gartner defines the ideal outcomes of vendor relationship management saying,

“[Vendor relationship management] enables organizations to optimally develop, manage and control vendor contracts, relationships and performance for the efficient delivery of contracted products and services. This can help clients meet business objectives, minimize potential business disruption, avoid deal and delivery failure, and ensure more-sustainable multisourcing, while driving the most value from their vendors.”

Despite these benefits, supplier relationship management is often viewed as non-essential. Consequently, the time invested in the practices falls short. In fact, recent RFP research suggests that before issuing an RFP, most procurement practitioners spend less than five hours on supplier communication. Additionally, out of five main procurement KPIs, only 26 percent of respondents identified maximizing the value of supplier relationships as a top priority.

To explore the latest in RFP research, download the request management report from Art of Procurement: RFP survey: Understanding the opportunities associated with better request management.

Supplier relationship management background

Supplier relationship management isn’t a new idea. Indeed, the Harvard Business Review first introduced the idea in 1983. Written by Peter Kraljic, the article, Purchasing must become supply management , warns that companies who ignore changing market complexities, only paying attention to costs open themselves up to risk.

Despite being written nearly 40 years ago, the perspective still resonates. Much of the article sounds familiar, particularly now, amid global supply chain challenges:

“Threats of resource depletion and raw materials scarcity, political turbulence and government intervention in supply markets, intensified competition, and accelerating technological change have ended the days of no surprises.”

The article emphasizes that purchasing must take all factors into account. From sharing business objectives to discussing market conditions, the way we interact with suppliers impacts business outcomes. Furthermore, Kraljic goes on to explore the benefits and importance of supplier management, saying,

“Whenever a manufacturer must procure a volume of critical items competitively under complex conditions, supply management is relevant. The greater the uncertainty of supplier relationships, technological developments, and/or physical availability of those items, the more important supply management becomes.”

While supplier management has evolved in the intervening years, the core message remains the same: Vendor relationships are most valuable when they are partnerships, not transactions.

Benefits of supplier relationship management

Treating vendors as partners means working more closely with them. Consequently, effective supplier relationship management requires regular collaboration, ongoing feedback and enhanced transparency. When strategically managed, these closer relationships yield benefits for both parties:

• Longer vendor relationships
• Reduced costs and improved predictability
• Highly-customized services and solutions
• Enhanced vendor risk management
• Better visibility to supplier capabilities
• Improved supplier responsiveness
• Enhanced vendor performance
• Innovative and collaborative problem solving
• Prioritization in times of scarcity
• Improved procurement data analytics

While a traditional procurement mindset is laser focused on reducing costs, the supplier relationship approach recognizes all of the ways a vendor can help improve your business. As you might expect, supplier relationship management is a highly sought after skill for procurement managers. Indeed, it requires a mixture of people skills, problem solving and attention to detail.

For those looking to undertake or improve their supplier relationship management, Gartner breaks down the process into four steps: design, align, launch and govern.

1. Design: Kickoff your supplier relationship program

As with any project, planning is key to the success of supplier relationship management. Inevitably, you’ll need buy-in from stakeholders in your organization. So, in this step, you’ll decide:

What are your overall goals for the program?

First, define your objectives and be as specific as possible. Are you hoping to reduce overall costs? Avoid going through the RFP process each year? Improve vendor performance? Certainly, all of these discussions will lay the groundwork for the next step.

Who in your business should be involved?

Stakeholders in your organization who interact with vendors are a good resource for feedback. Ask your finance, accounting and operations teams what challenges they’re facing. In addition, what are your organization’s plans for the future? How would better vendor relationships make it easier for you to achieve your goals?

How will you implement your plan?

Your vendor relationship management program will require action. How will you announce the plan to internal stakeholders? What will their involvement be? And, how will you roll the plan out to vendors?

Which suppliers should be considered?

Most organizations have hundreds of suppliers and vendors — from pens for the office to mission-critical software. Accordingly, you’ll need to prioritize which vendors should be included in the supplier relationship management program.

Make a list of characteristics that would indicate a valuable vendor relationship. For example, if your organization spends more than $100,000 annually with a vendor, or if the vendor provides a mission-critical service, they’re likely a good candidate.

How will you measure success?

Gathering starting data from vendors is crucial to measuring the impact of your efforts. Indeed, it’s particularly important if you’re implementing a vendor relationship management program for the first time. Furthermore, the data will become even more valuable when you want to optimize or expand the program to include additional vendors.

2. Align: Plan the details

Supplier relationship management is a team effort. If it depends on just one person, it’s bound to fail. So, gather your procurement team as well as other stakeholders and start planning. In this step, you’ll decide who is involved in what ways.

You may find a RACI matrix helpful because it helps assign roles to each person. For example, the matrix would assign duties according to who is responsible, accountable, consulted and informed during each step of the vendor relationship.

Stages of the vendor lifecycle

• RFP process and vendor selection
• Negotiation and contracting
• Vendor onboarding
• Managing ongoing deliverables
• Performance evaluations
• Renewal or renegotiation

Different people will be involved in each step of the overall vendor lifecycle. As you create your plan, try to view the process from your vendor’s point of view. What changes could make it easier for vendors to engage with your business? Which departments or employees would be involved?

Take the RFP process and vendor selection for example. What challenges do vendors face when answering RFPs? Typically, the concerns we hear are short deadlines, repetitive questions and unclear evaluation criteria. These factors are under your control. If you use RFP management software, you can improve all three, easily.

3. Launch: Take action

Now, this is where things get exciting. It’s time to put your plan to work.

Prioritize your vendor relationships

Make a list of vendors to be a part of your SRM pilot program. Generally, high-value, ongoing, strategic partners should take priority. Additionally, carefully consider the risk associated with each vendor — What is the likelihood that a poor relationship will lead to disruption? And, what is the overall impact of that disruption on your business if the worst were to happen.

Collaborate with vendors

Once you’ve selected your vendors, reach out to share your plan with them. For existing vendors, you’ll want to explain the process and discuss metrics for measuring progress. On the other hand, new partnerships are a clean slate. So, you can share the details of your process during onboarding.

No matter where you start in the vendor lifecycle, ensure all parties understand and agree with the goals so expectations are clear. In some cases, it’s helpful to conduct an initial vendor assessment to measure current performance.

Share what’s next

Supplier relationship management is about consistency and collaboration. So, plan to stay in touch. Let vendors know when you’ll reach out again. Additionally, let them know how to contact you in the meantime if they have any questions or concerns.

4. Govern: Review and optimize

Now, you’ve done the heavy lifting, but the job isn’t over. Maintaining supplier relationships requires ongoing, proactive action. Generally, meeting with key vendors quarterly strikes a balance between too little and too much contact. During your meetings, cover all aspects of your partnership including:

• Vendor performance metrics
• Updates on business goals and challenges
• Feedback on the SRM process
• Upcoming needs or projects
• New vendor offerings or opportunities

Try to keep the dialogue open and collaborative. As you invite ideas, encourage candid feedback and problem solve together, remember your ultimate goal — ensuring a mutually beneficial relationship.

11 procurement experts share supplier relationship advice

Investing in supplier relationships can improve outcomes for your business. Here are tips from procurement experts on how to improve your supplier relationships.

1. Improve supplier visibility

“It’s simply foundational thinking: you need good relationships with suppliers to get those preferential allocations when you need them.

“But you need more than that — you need visibility from your supplier, you need alerts on lateness, financial early warnings, status of critical components (like semiconductors of late). You simply will not know when your supplies will be available if you don’t have good SRM in place.” — Nancy Clinton, Spend Matters

2. Consider more than just cost

“The days of selecting vendors on cost alone are over. There are several other considerations. One that is often overlooked is the cultural fit between the organizations.

“Some items to keep in mind when evaluating cultural compatibility include time orientation, organization structure, decision-making processes, rate of change, and the age of the workforce.” — Lou Markstrom, CIO.com

3. View vendors as an extended part of your business

“Procurement organizations need to think of managed service providers and ecosystem partners as their extended enterprise and put stakeholder/customer management at the center of their strategy.

“They can build collaborative muscle by flipping their linear sourcing-centric approach to third-party/partner management and developing a holistic supplier management approach.” — Deloitte CPO research

4. Define the relationship and put supplier KPIs in writing

“Incorporate appropriate service levels and metrics into agreements. A relationship based on a handshake is far more likely to encounter problems than one in which expectations are clearly established and agreed upon.” — Dave Blanchard, Industry Week

5. Involve suppliers in strategic discussions

“If a vendor supplies a key part or service to your operation, invite that vendor to strategic meetings that involve the product they work with.

“Remember, you brought in the vendor because they could make the product or service better and/or cheaper than you could. They are the experts in that area, and you can tap into that expertise to gain a competitive edge.” — James Bucki, TheBalanceSMB.com

6. Get internal buy in from your suppliers

“Recognize that a supplier usually cannot be successful without internal support. The primary reason I see engagements fail is a lack of backing.

“For instance, abandoning the supplier after the contract is signed, leaving them to implement and manage their services without giving any direction on navigating client needs, or in driving the change necessary for an engagement to be successful.” — Philip Ideson, Art of Procurement

7. Evaluate suppliers’ performance regularly

“At Eaton, we use a supplier dashboard to understand cost, quality, and delivery performance as the key agenda items in our quarterly or annual business reviews with suppliers. These supplier dashboards also serve the basis for supplier negotiation in terms of pricing.” — Muddassir Ahmed, Ph.D., Spend Matters

8. Use technology to enable

“Information technology is often seen as the Holy Grail of supplier-related issues. However, only implementing software, which is already complex by nature, does not add value in complete isolation … IT is an important enabler for value creation as it creates transparency and process efficiencies while improving knowledge management..” — Hubert Verweij and Linda Peck, PwC

9. Treat suppliers with respect

“The purpose of such relationships is to build an effective, long-term relationship. As such, buyers must communicate with the suppliers on the basis of an equal partnership. Threats, aggression, and negotiation stunts will likely undermine the degree of supplier trust into the relationship. Consider, rather, the supplier, as an extension of the internal organization and therefore subject to the professional respect afforded to co-workers.” — Jonathan Webb, Forbes

10. Keep supplier information easily accessible

“Having detailed, accurate and centralized supplier information is a foundational part of managing relationships with suppliers — from product scoping to payment processing. This information can include quotes, contracts, contact details, locations, remittance information, certifications, performance ratings, risk scores, capabilities, and category coverage.

“Tactically, collecting, verifying, cleansing, and managing supplier information can drive significant cost savings. Strategically, supplier information management can drive greater collaboration and innovation with enterprise suppliers.” — Andrew Bartolini, CPO rising

11. Use technology to simplify the SRM process

“The key to effective SRM [supplier relationship management] is having a system in place that makes it easy to view your suppliers and analyze all of the risk factors. Using SRM technology provides you with full and unparalleled visibility into your supplier base, giving you a detailed picture of what is impacting your supply chain and making it easy to mitigate the risk.” — Mickey North Rizza, CIPS.org

Resources for additional vendor relationship management research

In addition to the articles cited above (Gartner, Harvard Business Review, Art of Procurement research), there are countless other helpful resources to improve vendor relationship management.

Supplier relationship management: Unlocking the hidden value in your supply base — Book by Jonathan O’Brien

While this book focuses primarily on supplier relationship management, the knowledge shared has a far-reaching impact. A Spend Matters review of the book says, “This deserves to become THE standard book on this topic.” Not a bad place to start.

Supplier relationship management example — Gartner case study

Looking for a real-world supplier relationship management example to include in your own business case? Check out this article that explores the positive impact of supplier management on profit and innovation.

Vendor relationship management software

Leveraging technology has the potential to make a huge impact on buyer-seller relationships. Indeed, there are many procurement technology solutions designed specifically for improving vendor relationships.

Supplier relationship management training — Institute for Supply Management (ISM)

While this blog gives a good overview of supplier relationship management, there’s so much more to learn. If you’re ready to give your procurement skill set a boost, consider an online training or certification program. In addition to the ISM course above, the Chartered Institute of Procurement and Supply (CIPS) and World Commerce & Contracting also offer online supplier relationship certifications.

Supplier relationship management example — Health care case study, University of St. Gallen

Detailed and meticulous, this case study explores supplier relationship management in action. With data and charts, you can explore the real-life application and results of SRM principles.

How better RFPs improve your supplier relationships

Ultimately, supplier relationship management is all about time. It comes down to investing time in connecting with suppliers, asking questions and offering transparency. However, time is one thing that’s scarce for many procurement professionals.

While the RFP process represents a small part of the overall vendor lifecycle, it’s one of the first touchpoints in that relationship. Unfortunately, more than 66 percent of RFP issuers use Word and Excel for the process which leads to a lot of challenges. From poor collaboration to endless copying and pasting, it’s inefficient and cumbersome for the buyer. At the same time, it’s repetitive and time consuming for the vendor.

So, centralizing and automating the process with an RFP management system delivers tremendous value to RFP issuers and vendors alike.

“RFP360 helps us automate and focus on core business. Now, we can categorize, search, and profile providers, which helps us understand who would be the most appropriate vendors to invite to a particular RFP,” said Mark Rieder, SVP of HR technologies and benefits administration at NFP. “We’re shortlisting faster, and we’re being a true partner to our vendors. It’s a win-win.”

Learn more about how you can improve supplier relationships with RFP360 in this case study: NFP -Transforming vendor evaluation and management with RFP software.

• Vendor selection process: Reduce stress with these pro tips
• How to issue an IT RFP: Tips, templates and examples
• The RFQ: A request for quotation how-to guide with template

Graham McConnell

Graham lives in the B2B marketing space. He dabbles in writing, usually about digital marketing, but has other interests like the Portland Trail Blazers, the Portland Timbers, sci-fi films, video games and of course, response management.

Ready to see Responsive in action?

Find out why leading response teams across the world turn to Responsive for their Strategic Response Management and RFP software needs.

Learn more about RFP software

• Privacy Overview
• Strictly Necessary Cookies
• Marketing Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

To learn more read our Cookie Policy .

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. By choosing to leave these enabled, you consent to our use of cookies.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

• Search for:

Home       Resources       Case studies       Toyota

Few companies have as solid a reputation for supplier relationship management as Toyota does. The world’s biggest auto maker has developed longterm, collaborative and close partnerships with its key Japanese suppliers over a period of several decades. In its European operations, like those of North America, supplier relationship management (SRM) is also a major focus area, albeit one with a shorter history.

We asked Jean-Christophe Deville, general manager, purchasing, at Toyota Motor Europe about its approach.

How do you define srm at toyota and how do srm specific activities with strategic suppliers differ from the way you manage supplier relations in general, what impact, if any, has the economic downturn and toyota’s recent quality issues had on your srm activities, what challenges do you face internally from an srm perspective, what other roles does purchasing, and the supplier relationship managers within the function, play in srm, innovation is a key driver of srm at toyota. how do you manage the process of capturing, assessing and either progressing or rejecting supplier ideas and proposals, to date, the financial benefits you’ve achieved from srm activity are relatively small (0-2% of annual spend with each supplier), but you expect these to grow significantly in future. how will you achieve that, toyota generally shares savings with suppliers, typically on a 50:50 basis. why do you consider this important, what do you see as the most important ingredients for success in srm and what should you avoid doing, reports and publications, case studies, newsletter sign-up, stay connected on linkedin, lang: en_us, enjoy customer of choice benefits.

Find out what your key suppliers really think of you and how to become their customer of choice. 

Find out more

Stay in touch

2020 global srm research report - supplier management at speed..

Now in its 12th year, this year we have seen an increase of 29% in the number of companies responding compared to 2019. In addition, the proportion of respondents at CPO/EVP level or equivalent has increased to over 50%. Learn how now, more than ever before, procurement has the opportunity to make the case for SRM to ensure organisations don’t just survive but thrive.

Sign up below to get our insight emails direct to your inbox.

• DOI: 10.4067/S0718-18762009000300006
• Corpus ID: 15214771

Supplier Relationship Management: A Case Study in the Context of Health Care

• Tobias Mettler , P. Rohner
• Published in Journal of Theoretical and… 1 December 2009
• Business, Medicine

Figures and Tables from this paper

65 Citations

Transformation of the hospital supply chain: how to measure the maturity of supplier relationship management systems in hospitals, a holistic view on the adoption and cost-effectiveness of technology-driven supply chain management practices in healthcare, hospital-supplier integration and hospital performance: evidence from saudi arabia, development of a purchasing portfolio model: an empirical study in a brazilian hospital.

• Highly Influenced

A Comparative Study on Supply Chain Management Practices among Production and Service Sector – Theoretical Prospective.

Benefits and barriers of e-sourcing and e-purchasing in the healthcare sector: a case study, e-procurement adoption barriers in retrospect: a structural equation analysis of ghanaian hospitals, lead time improvement by supplier relationship management with a case study in pompaj company, american journal of social and management sciences the promise of the services sector: a united arab emirates perspective- case study, best practices in supplier management worldwide, applicable to supplier relationship management (srm) system of the head of logistics operations of the colombian air force 2, 72 references, an analysis of the factors influencing networkability in the health-care sector, e-procurement in hospital pharmacies: an exploratory multi-case study from switzerland, performance management in health care: the past, the present, the future, beyond the hype: a taxonomy of e-health business models., supply‐chain strategy: organizational influence through supplier alliances, relationship marketing in health care., why innovation in health care is so hard., a systems perspective of performance management in public sector organisations, organizational concepts for purchasing and supply management implementation, supply chain management: relationships, chains and networks, related papers.

Showing 1 through 3 of 0 Related Papers

To read this content please select one of the options below:

Please note you do not have access to teaching notes, an enterprise collaborative management system – a case study of supplier relationship management.

Journal of Enterprise Information Management

ISSN : 1741-0398

Article publication date: 1 June 2004

In this paper, a server‐based enterprise collaborative management system using enterprise application integration technology is developed for trial implementation at Honeywell Consumer Products (Hong Kong) Limited, in the area of supplier relationship management. The system facilitates supplier selection using an integrative case‐based supplier selection and help desk approach to select the most appropriate suppliers, based on their past performance records from a case‐based warehouse. Discusses a case study to integrate Honeywell's supplier rating system and product coding system by case‐based reasoning technique to select preferred suppliers during the new product development process. Finds that the outsource cycle time from the searching of potential suppliers to the allocation of orders is greatly reduced while performance of suppliers can be monitored simultaneously.

• Management techniques
• Manufacturing resource planning
• Supply chain management
• Buyer‐seller relationships

Choy, K.L. , Lee, W.B. and Lo, V. (2004), "An enterprise collaborative management system – a case study of supplier relationship management", Journal of Enterprise Information Management , Vol. 17 No. 3, pp. 191-207. https://doi.org/10.1108/17410390410531443

Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

Related articles

All feedback is valuable.

Please share your general feedback

Report an issue or find answers to frequently asked questions

Contact Customer Support

What Is Supplier Relationship Management (SRM)?

If your company is regularly purchasing goods or services from suppliers, you’re probably looking to optimize your purchasing processes. Who wouldn’t want improved efficiency, lower costs, higher visibility, and better relationships with suppliers?

This is where Supplier Relationship Management (SRM) comes into the picture.

Supplier relationship management is a strategic approach to managing the relationships and interactions between you and your suppliers. It involves a structured process of planning, implementing, and monitoring the interactions to ensure the effective and efficient delivery of goods and services.

Traditionally, procurement focused on transactional activities, like negotiating prices and managing contracts. However, as businesses have become more interconnected and dependent on their supply chains , the role of procurement has evolved into developing long-term, collaborative relationships with suppliers. This shift towards strategic supplier management involves a deeper understanding of supplier capabilities, aligning supplier goals with your company’s objectives, and leveraging supplier expertise to drive innovation.

So it’s quite clear that developing and maintaining good relationships with suppliers is crucial for business success. But before we dive into the nitty gritty of supplier relationship management, let’s take a look at its benefits.

Benefits of supplier relationship management

A good SRM program can help you foster strong, collaborative relationships with suppliers. The benefits of this include:

• Improved operational efficiency stemming from reduced administrative overhead, increased speed and responsiveness, and better inventory management.
• Gaining insight into the supplier's operations, inventory, and delivery capabilities, which can foster innovation and enable the co-development of new products or services.
• Building trust and loyalty with suppliers, which can lead to better pricing, discounts, and more favorable contract terms as the suppliers are more invested in the success of the relationship.
• Enhanced visibility into all aspects of the supply chain via a centralized location to refer to supplier data, contracts, performance metrics.
• Better quality of goods and services as a result of reliable supply chain, supplier collaboration, and performance monitoring. All of which leads to improved customer satisfaction.
• The ability to identify supply chain risks early, respond to them quickly and effectively by closely monitoring supplier performance and financial health. Stronger relationships with suppliers also ensures you can meet your procurement needs during market disruptions.
• Ensures all your suppliers are compliant with all relevant legal, environmental, and ethical standards.

Overall, effective supplier relationship management can give you a competitive edge by building a sustainable, resilient, and mutually beneficial supplier ecosystem.

So the next question you might have is how to implement a robust supplier relationship management system. Let’s dive into it.

How to implement an effective supplier relationship management program

Maintaining strong relationships with suppliers is crucial for any organization. An effective supplier relationship management (SRM) program can help you optimize costs, improve quality, and ensure reliable delivery. Here is how to implement an effective supplier relationship management program in four phases:

Design Phase

The design phase of a supplier relationship management program involves:

• Defining the objectives of the SRM program. This includes identifying the specific goals of your company, such as cost reduction, risk mitigation, innovation, or improved service levels. By establishing clear objectives, the SRM program can be tailored to address your unique needs and challenges.
• Engaging with key stakeholders from procurement, operations, finance, and other relevant departments. By involving stakeholders, you can gather valuable insights, align expectations, and ensure the SRM program is integrated with your overall business strategy.
• Prioritizing vendors based on their strategic importance, risk profile, and potential for value creation. This process helps you focus your resources and efforts on the most critical supplier relationships, ensuring the SRM program delivers the greatest impact. Factors such as spend, supply criticality, performance history, and innovation potential can be used to categorize vendors and help with the prioritization process.

Alignment Phase

The alignment phase of a supplier relationship management program involves establishing clear roles, responsibilities, and collaboration among the cross-functional team. This includes establishing clear communication channels, setting shared goals and metrics, and defining the decision-making process. This collaborative approach will help your team navigate the complexities of supplier relationship management and ensure that everyone is working towards the same objectives.

One of the key tools you can use in this phase is the RACI (Responsible, Accountable, Consulted, Informed) matrix.

Image source link

The RACI matrix helps define the participation and accountability of various team members in the SRM program. It clearly delineates who is Responsible for completing a task, who is Accountable for the overall outcome, who needs to be Consulted for their expertise, and who needs to be Informed about the progress and decisions.

By using the RACI matrix, the SRM team can ensure that each stakeholder understands their role and the level of involvement required from them. This promotes effective collaboration, reduces the risk of confusion or duplication of efforts, and helps the team stay aligned throughout the SRM program.

Your goal in the alignment phase is to foster cross-functional teamwork, establish role clarity, and develop a shared understanding of the SRM program's objectives and responsibilities.

Launch Phase

The launch phase of a supplier relationship management program involves:

• Ensuring that the SRM plans developed during the previous phases are clearly communicated to all relevant stakeholders, including internal teams and external suppliers. This helps align expectations and ensure that all parties understand their roles and responsibilities within the SRM program.
• Working closely with suppliers to establish collaborative working relationships. This involves setting up regular communication channels, such as joint business reviews and performance feedback sessions, to foster transparency and open dialogue. By involving suppliers in the decision-making process and actively seeking their input, you can build trust and foster a sense of partnership.
• Executing specific SRM initiatives and activities outlined in the SRM plans. This may include implementing joint improvement projects, conducting supplier audits, and establishing supplier development programs. These collaborative efforts help identify and address any gaps or areas for improvement, ultimately strengthening the relationship between you and your suppliers.
• Monitoring and measuring the performance of the SRM program, using key performance indicators (KPIs) to track progress and identify areas for optimization. This data-driven approach will allow you to continuously refine your SRM strategies and ensure that the program is delivering the desired outcomes.

A successfully implemented launch phase can lay the foundation for a robust and sustainable SRM program that drives long-term value and competitive advantage for you.

Governance Phase

The governance phase of a supplier relationship management program involves:

• Establishing a framework for regularly reviewing the performance of supplier relationships, identifying areas for improvement, and implementing necessary changes. This may include conducting periodic assessments of key performance indicators (KPIs), gathering feedback from stakeholders, and analyzing the impact of SRM initiatives on your overall business outcomes.
• Facilitating the adaptation of SRM practices to address your evolving business needs, changes in the market, or new supplier capabilities. By continuously monitoring and adapting the SRM program, you can ensure that your supplier relationships remain agile, responsive, and capable of supporting your company's strategic priorities.
• Setting up governance committees or steering groups responsible for overseeing the SRM program, making strategic decisions, and driving continuous improvement. These governance structures help maintain alignment, facilitate cross-functional collaboration, and ensure that the SRM program remains a strategic priority.

The governance phase helps sustain the long-term value and effectiveness of supplier relationships, enabling you to stay ahead of the curve and adapt to changing business needs and market fluctuations.

But keeping track of all the moving parts of a robust supplier relationship management program is not just challenging; it’s almost impossible for you or any employee. That’s why you need to leverage technology to implement a successful SRM program.

Technology and supplier relationship management

From cloud-based platforms to data analytics tools can help you streamline communication, enhance visibility, and make more informed decisions when it comes to supplier selection, performance evaluation, and contract negotiation.

One of the key benefits of leveraging technology in supplier relationship management is the ability to gather and analyze vast amounts of data. By integrating data from various sources, such as procurement systems, enterprise resource planning (ERP) software, and supplier portals, you can gain a comprehensive understanding of your supplier base, including their capabilities, delivery performance, and financial stability. This data-driven approach can aid you in making more strategic decisions, identifying potential risks, and optimizing supplier relationships.

In addition, cloud-based SRM platforms provide a centralized hub for managing all supplier-related activities, from onboarding and contract management to performance monitoring and collaboration. These tools facilitate seamless communication, document sharing, and task coordination, enabling cross-functional teams to work more efficiently and effectively with suppliers.

By embracing tools like these, you can enhance your supply chain, drive cost savings, and foster stronger, more collaborative relationships with their suppliers.

Next, let’s look at some of the key features of SRM software that make these tools so valuable.

Key features of supplier relationship management software

Here are some key features of supplier relationship management (SRM) software which can help you streamline supplier-related operations:

• A centralized dashboard which gives you enhanced visibility into supplier data, like contact information, performance metrics, and contract details. This enhanced visibility enables better decision-making and strategic planning when it comes to supplier selection and management.
• Seamless, organized communication channels, which can help you track conversations, share documents, and set reminders for important deadlines or follow-ups. This functionality helps maintain strong, transparent relationships with suppliers and ensures timely information exchanges.
• Improved supplier risk mitigation capabilities via continuous monitoring of supplier performance and compliance requirements. This risk management feature can help you make informed decisions, implement contingency plans, and minimize disruptions to your supply chain.

If you’d like to take advantage of these key features – supplier data visibility, communication management, and risk mitigation – in a single SRM software, you should definitely take a look at Ramp’s procurement software.

Ramp’s dashboard helps centralized intake to capture any type of spend request, collect the right details upfront, and gain earlier visibility into spend. It integrates with your existing communication channels (like Teams or Slack) and review/approve documents within the app itself. You can unify all your SRM needs with Ramp’s all-in-one platform.

Check out Ramp in action today!

Finally, let’s wrap up this article with some best practices for a successful SRM program.

Best practices for successful supplier relationship management

Here are some best practices for successful supplier relationship management (SRM):

• Define specific goals for the SRM program, such as cost savings, quality improvements, or risk reduction.
• Clearly define contract terms, deliverables, and service-level agreements (SLAs).
• Assess supplier risks, including financial, operational, and reputational factors. And also ensure that suppliers comply with relevant regulations, standards, and ethical codes of conduct.
• Segment suppliers based on factors like spend, criticality, and strategic importance.
• Allocate more resources and attention to strategic or high-impact suppliers.
• Develop key performance indicators (KPIs) to measure the success of supplier relationships.
• Monitor supplier adherence to contractual obligations and address any non-compliance issues.
• Encourage open and transparent communication with suppliers by regularly reviewing performance, sharing feedback, and addressing any issues collaboratively.
• Build trust and mutual understanding with suppliers by involving them in product development, process improvements, and strategic planning.
• Offer training, resources, and guidance to help suppliers improve their capabilities. Also, provide opportunities to collaborate to enhance supplier performance and sustainability.
• Utilize SRM software like Ramp to centralize supplier information and automate processes
• Regularly review and update SRM strategies and processes based on changing business needs.

By implementing these best practices, you can build strong, collaborative relationships with your suppliers and derive greater value from your supplier relationship management program.

Don't miss these

How Dragonfly Pond Works leveled up expense management with Ramp

How Girl Scouts of the Green & White Mountains saved 20+ hours per month with Ramp

How 8VC resolved accounting coding challenges, increased spend visibility, and cut time to close with Ramp

How Studs consolidated expense management, travel, and bill pay into Ramp’s single efficient platform

How Mindbody & Classpass saved time, enhanced visibility, and improved usability with Ramp

How Rarebreed Veterinary Partners prepared for scale with Ramp

How Tomo drove efficiency and slashed time to close with Ramp

• Higher credit limit than traditional business credit cards
• Spend management tools
• Give an unlimited number of physical and virtual cards to employees
• Spending controls and limits for employees
• Average savings of 5% from rewards and expense-reducing features
• More than $350,000 in offers from Ramp’s partners
• No annual fees, foreign transaction fees, or card replacement fees
• No credit check or personal guarantee is required
• No interest accumulation on your balance
• Seamless integration with numerous accounting software
• You must pay back the balance in full at the end of each month
• No elevated cashback rewards for specific categories
• You need $50,000 in your business bank account to qualify
• Cashback rewards
• Issue an unlimited number of employee cards
• Access to over $350,000 in offers from multiple partners
• Automated expense management software
• Track vendors and receive pricing insights from one dashboard
• Automated accounts payable
• Zero fees or interest
• No interest or fees
• No personal guarantee
• Balances do not carry over, so you must pay them by the end of each month
• Your business must be incorporated to qualify for a card
• You need at least $50,000 in a business bank account to qualify
• Average net savings of 5% due to cost-reducing features
• Unlimited physical and virtual employee cards
• Access to $350,000 in deals from various partners
• View vendor information and pricing on a single dashboard
• Automate accounts payable
• No fees or interest
• Cashback rewards with flexible redemption options
• Built-in expense management software
• No credit check or personal guarantee required
• Must be a registered business to qualify
• Must have most of your business spend in the US
• Get cashback on purchases
• Provide unlimited physical and virtual employee card
• Access more than $350,000 in deals from various partner
• Use automated software for expense management
• Cashback rewards on purchases
• No personal guarantee or credit check required

• The Ramp Card is ideal for incorporated businesses
• Comes with automated expense management tools
• Provides 5% net savings on average
• Features AI-powered tools for detailed spending insights and cost-cutting recommendations
• Integrates seamlessly with accounting software to aid financial tracking and reporting
• Best for businesses aiming to streamline financial operations and enhance savings
• Offers 5% net savings on average through expense-cutting features
• No personal guarantee or credit check required for eligibility
• Automated expense management features like spending limits and receipt-matching
• Integration with accounting platforms including NetSuite, Quickbooks, and Xero
• Offers AI-powered cost-saving insights
• Not available to sole proprietors or unregistered small businesses
• Requires $50,000 in a business bank account to qualify

Card Details

The Ramp Card is an innovative corporate card, particularly suited for LLCs, that combines automated expense management features with cashback rewards. It offers detailed spending insights with AI-powered recommendations for cutting costs, and integrates seamlessly with accounting software to simplify financial tracking and reporting. Cards come with no annual fees, foreign transaction fees, or card replacement fees. Ramp is an excellent choice for businesses that want to streamline their financial operations while saving money.

• Primarily focused on cost-cutting, which might not suit all business needs
• Geared mainly towards U.S. businesses, which may limit its appeal for international transactions

Ramp’s charge card program comes with the additional perk of tools designed to help your business track and reduce its spending.

• No annual fee
• Valuable cash back
• Additional tools to track spending 
• Unlimited physical and virtual employee cards with custom limits
• Not available to sole proprietors
• Must have $50,000 in liquid assets
• Unlimited free virtual and physical employee cards
• Customizable spending limits for employees
• Real-time transaction visibility
• Connects with accounting systems like QuickBooks and NetSuite
• Automates bill payments and invoice processing
• Provides a comprehensive audit trail and expert support for negotiations
• Unlimited virtual cards
• Real-time expense tracking
• Integration with accounting software
• Automated bill payments and invoice processing
• Requires full balance payments monthly
• Limited to businesses with most of their operations in the U.S.
• Corporate card and spend management platform
• Free employee cards with custom spending limits
• Cashback rewards on all purchases with no fees
• Built-in fraud protection ensures that your organization's finances are always secure
• Offers an average savings of 5% by identifying cost-saving opportunities
• No annual fees or interest
• Custom spend and vendor controls
• High credit limits
• Automatic receipt matching and expense categorization
• As a corporate charge card, balance can't be carried monthly
• Must have $50,000 in a business bank account to qualify
• Unlimited employee cards with custom spending limits
• Assists with software price negiotations
• Accounts payable software
• Uses business revenue to determine eligibility and credit limit
• Only available to corporations, LLCs, and LPs
• As a charge card, balance can't be carried monthly
• Automated receipt matching
• Balance must be paid in full each month
• Integrates with accounting platforms like NetSuite, Quickbooks, and Xero
• No annual fee or foreign transaction fees
• Must be a corporation, LLC, or LP to qualify
• Must have most of your operations and business spending in the US to qualify
• Corporate card with built-in spend management
• Automated expense reports on fuel spending
• Advanced financial management features
• Unlimited free employee cards
• Requires a registered business and $50,000 in a U.S. business bank account to qualify
• B‍alance must be paid in full monthly
• Corporate card with customizable spending controls
• Unlimited free physical and virtual employee cards
• No personal guarantee or credit check required to qualify
• Advanced expense management automations and accounting integrations
• Must be a corporation, limited liability company, or LP to qualify
• Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
• Credit limits up to 30 times higher than traditional credit cards
• Sales-based underwriting makes for an easier qualification process
• No credit check or personal guarantee required for eligibility

The Ramp Corporate Card is ideal for startups without a credit history. You just need an EIN number and $50,000 in a business bank account to qualify, and there's no credit check or personal guarantee required. Ramp's corporate card offers cashback on purchases and built-in expense management software to streamline your business finances.

Some of its features include receipt matching, subscription management, and AI-powered spending insights. Ramp is an excellent choice for startups that are aiming to earn rewards on business purchases while managing expenses.

• Ramp Corporate Card includes built-in spend management and travel-specific features
• Ability to set and enforce your company's travel spending policy on employee cards
• Features a travel dashboard displaying complete trip itineraries and flight information for each employee
• Offers cashback on purchases, including those made through travel booking platforms
• Provides AI-powered finance automation and insights
• Real-time expense reporting, customizable spending controls, and card templates for efficient financial management
• Seamless integration with over 100 applications, including travel management platforms
• No annual, application, or late payment fees
• Universal cashback reward applicable to all types of travel expenses
• Advanced financial management features suitable for tracking travel spending
• Compatibility with 100+ applications for streamlined travel expense management

The Ramp Card is an innovative corporate card, particularly suited for LLCs, that combines automated expense management features with cashback rewards on purchases. It offers detailed spending insights with AI-powered recommendations for cutting costs, and integrates seamlessly with accounting software to simplify financial tracking and reporting. Cards come with no annual fees, foreign transaction fees, or card replacement fees. Ramp is an excellent choice for businesses that want to streamline their financial operations while saving money.

• Corporate card particularly suited for LLCs
• Combines automated expense management features with cashback rewards on purchases
• Offers detailed spending insights with AI-powered recommendations for cutting costs
• Integrates seamlessly with accounting software to simplify financial tracking and reporting
• Excellent choice for businesses that want to streamline their financial operations while saving money

• Earn a $250 statement credit after spending $5,000 within the first three months of card membership
• Introductory rate of 0% APR for the first 12 months
• 2% cashback for the first $50,000 in purchases each year. Then, unlimited 1% cashback
• Expanding Buying Power lets you exceed your credit limit while still receiving rewards
• 3% balance transfer fee
• No overlimit fees
• 0% intro APR for the first 12 months
• Access to more capital
• No annual fees
• You only get 2% cashback for the first $50,000 before going down to unlimited 1% cashback
• $39 penalty fee for late payments and returned payments

The Role of Top Management Involvement and Supply Chain Integration on Smes’ Innovation Performance: Moderation Impact of Firm Experience Capability

• Published: 28 June 2024

Cite this article

• Timothy Amoako   ORCID: orcid.org/0000-0001-6669-6344 1 ,
• Hao Chen 1 ,
• Stephen Abiam Danso 1 &
• Edem Segbefia 1  

37 Accesses

Explore all metrics

Top management involvement (MVV) is acknowledged to be a critical factor in enhancing firm performance. As a result, we evaluated the mediation role of supply chain integration (SCI) in the relationship between MVV and innovation performance. Again, the study evaluated the moderation role of firm experience capability (FEXCAP) in the association between MVV and SCI (internal, customer, and supplier). To this end, we conducted a quantitative empirical study in Ghana enterprise agency. Data was gathered from 685 manufacturing and service small and medium enterprises’ top managers and analyzed using the Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences version 26 software. The results revealed that SCI (internal, customer, and supplier) partially mediated the relationship between MVV and innovation performance.

Additionally, FEXCAP positively moderated the association between MVV and SCI (internal, customer, and supplier). The study is critical as it endorses the significant role of MVV in improving the effectiveness of SCI and FEXCAP in firm innovation performance. We evaluated our model in a small and medium context.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or Ebook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime

Price includes VAT (Russian Federation)

Instant access to the full article PDF.

Rent this article via DeepDyve

Institutional subscriptions

Similar content being viewed by others

Artificial intelligence-driven innovation for enhancing supply chain resilience and performance under the effect of supply chain dynamism: an empirical investigation

Competitiveness Through Development of Strategic Talent Management and Agile Management Ecosystems

Customer experience management: toward implementing an evolving marketing concept, data availability.

The research data will be made available upon request.

Afshan, N., Mandal, P., & Gunasekaran, A. (2022). Mediating role of immediate performance outcomes between supply chain integration and firm performance. Asia Pacific Journal of Marketing and Logistics, 34 (4), 669–687. https://doi.org/10.1108/APJML-11-2020-0841

Article   Google Scholar  

Alfalla-Luque, R., Marin-Garcia, J. A., & Medina-Lopez, C. (2015). An analysis of the direct and mediated effects of employee commitment and supply chain integration on organisational performance. International Journal of Production Economics, 162 , 242–257. https://doi.org/10.1016/j.ijpe.2014.07.004

Amoako, T., Huai Sheng, Z., & Dogbe, C. S. K. (2022a). Effect of internal integration on SMEs’ performance: The role of external integration and ICT. International Journal of Productivity and PerformaNce Management, 71 (2), 643–665. https://doi.org/10.1108/IJPPM-03-2020-0120

Amoako, T., Sheng, Z. H., & Dogbe, C. S. K. (2022b). Assessing the moderation role of ICT in the relationship between supply chain integration and SME performance. Journal of Industrial Integration and Management, 7 (02), 203–233. https://doi.org/10.1142/S2424862221500160

Amoako-Gyampah, K., Meredith, J., & Loyd, K. W. (2018). Using a social capital lens to identify the mechanisms of top management commitment: A case study of a technology project. Project Management Journal, 49 (1), 79–95. https://doi.org/10.1177/875697281804900106

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103 (3), 411. https://doi.org/10.1037/0033-2909.103.3.411

Attrams, A. S., & Tshehla, M. (2022). Challenges of services sector SMEs in a developing country: A case of Ghana. Journal of the International Council for Small Business, 3 (3), 228–236. https://doi.org/10.1080/26437015.2021.1982369

Bagozzi, R. P., Yi, Y., & Phillips, L. W. (1991). Assessing construct validity in organizational research. Administrative science quarterly , 421–458.  https://doi.org/10.2307/2393203

Balsmeier, B., & Czarnitzki, D. (2013). How important is industry-specific managerial experience for innovative firm performance? In Academy of Management Proceedings (Vol. 2013, No. 1, p. 12060). Briarcliff Manor, NY 10510: Academy of Management

Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource-based theory. Journal of Supply Chain Management, 48 (2), 3–6. https://doi.org/10.1111/j.1745-493X.2012.03265.x

Barrales-Molina, V., Montes, F. J. L., & Gutierrez-Gutierrez, L. J. (2015). Dynamic capabilities, human resources, and operating routines: A new product development approach. Industrial Management & Data Systems, 115 (8), 1388–1411. https://doi.org/10.1108/IMDS-02-2015-0058

Ben Slimane, S., Coeurderoy, R., & Mhenni, H. (2022). Digital transformation of small and medium enterprises: A systematic literature review and an integrative framework. International Studies of Management & Organization, 52 (2), 96–120. https://doi.org/10.1080/00208825.2022.2072067

Ben Slimane, S. (2021). Absorption–technological absorptive capacity and innovation: The primacy of knowledge.  Innovation Economics, Engineering and Management Handbook 2: Special Themes , 43–49. https://doi.org/10.1002/9781119832522.ch3

Bengtsson, M., Raza-Ullah, T., & Vanyushyn, V. (2016). The coopetition paradox and tension: The moderating role of coopetition capability. Industrial Marketing Management, 53 , 19–30. https://doi.org/10.1016/j.indmarman.2015.11.008

Boonstra, A. (2013). How do top managers support strategic information system projects and why do they sometimes withhold this support? International Journal of Project Management, 31 (4), 498–512. https://doi.org/10.1016/j.ijproman.2012.09.013

Brusset, X., & Teller, C. (2016). Supply Chain Capabilities, Risks, and Resilience. International Journal of Production Economic, 184 , 59–68. https://doi.org/10.1016/j.ijpe.2016.09.008

Campbell, D. T., & Fiske, D. W. (1959). Convergent and discriminant validation by the multitrait-multimethod matrix. Psychological Bulletin, 56 (2), 81. https://doi.org/10.1037/h0046016

Caroline, N., Harriet, K., & Anne, N. (2016). Top management commitment for successful small and medium enterprises (SMEs): a hoax or a reality? European Scientific Journal , 12(4). https://doi.org/10.19044/esj.2016.v12n4p259

Chang, W., Ellinger, A. E., & Kim, K. K. (2016). Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors. European Management Journal, 34 (3), 282–295. https://doi.org/10.1016/j.emj.2015.11.008

Chen, H., Amoako, T., Quansah, C. E. Danso, S. A., & Jidda, D. J. (2023). Assessment of the impact of management commitment and supply chain integration on SMEs’ innovation performance: Moderation role of government support. Heliyon, 9(5). https://doi.org/10.1016/j.heliyon.2023.e15914

Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Management, 22 (2), 119–150. https://doi.org/10.1016/j.jom.2003.12.007

Colbert, B. A. (2004). The complex resource-based view: Implications for theory and practice in strategic human resource management. Academy of Management Review, 29 (3), 341–358. https://doi.org/10.5465/amr.2004.13670987

Danese, P., Romano, P., & Formentini, M. (2013). The impact of supply chain integration on responsiveness: The moderating effect of using an international supplier network. Transportation Research Part e: Logistics and Transportation Review, 49 (1), 125–140. https://doi.org/10.1016/j.tre.2012.08.002

Dong, L. (2008). Exploring the impact of top management support of enterprise systems implementations outcomes: Two cases. Business Process Management Journal, 14 (2), 204–218. https://doi.org/10.1108/14637150810864934

Doty, D. H., & Glick, W. H. (1998). Common methods bias: Does common methods variance really bias results? Organizational Research Methods, 1 (4), 374–406. https://doi.org/10.1177/1094428198140

Easterby-Smith, M., Lyles, M. A., & Peteraf, M. A. (2009). Dynamic capabilities: Current debates and future directions. British Journal of Management, 20 , S1–S8. https://doi.org/10.1111/j.1467-8551.2008.00609.x

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21 (10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11%3c1105::AID-SMJ133%3e3.0.CO;2-E

Farzaneh, M., Ghasemzadeh, P., & Nazari, J. A. (2021). Contributory role of dynamic capabilities in the relationship between organizational learning and innovation performance. European Journal of Innovation Management, 24 (3), 655–676. https://doi.org/10.1108/EJIM-12-2019-0355

Fawcett, S. E., & Magnan, G. M. (2002). The rhetoric and reality of supply chain integration. International Journal of Physical Distribution & Logistics Management, 32 (5), 339–361. https://doi.org/10.1108/09600030210436222

Flynn, B. B., & Huo, & B., Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28 (1), 58–71. https://doi.org/10.1016/j.jom.2009.06.001

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics . Sage Publications Sage CA. https://doi.org/10.1177/002224378101800313

Book   Google Scholar  

Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19 (2), 185–200. https://doi.org/10.1016/S0272-6963(00)00055-3

Gaskin, J., & Lim, J. (2016). Master Validity Tool, AMOS Plugin: Gaskination's StatWiki.

Gaskin, J., James, M., & Lim, J. (2020). Indirect Effects, AMOS Plugin. Gaskination's StatWiki.

GEA. (2020). Ghana Enterprise Agency. Available: https://gea.gov.gh/ , 2020.

Gounaris, S., & Tzempelikos, N. (2012). Conceptualization and measurement of key account management orientation. JBM-Journal of Business Market Management, 5(3): 173–194. https://hdl.handle.net/10419/66011

Hair, J. F., William, C. B., Babin, B. J., et al. (2010). Multivariate Data Analysis . Prentice Hall.

Google Scholar  

Harmancioglu, N., Grinstein, A., & Goldman, A. (2010). Innovation and performance outcomes of market information collection efforts: The role of top management team involvement. International Journal of Research in Marketing, 27 (1), 33–43. https://doi.org/10.1016/j.ijresmar.2009.09.005

Helfat, C. E. (2007). Stylized facts, empirical research, and theory development in management. Strategic organization, 5 (2), 185–192. https://doi.org/10.1177/1476127007077559

Hermano, V., & Martín-Cruz, N. (2016). The role of top management involvement in firms performing projects: A dynamic capabilities approach. Journal of Business Research, 69 (9), 3447–3458. https://doi.org/10.1016/j.jbusres.2016.01.041

Hooshangi, M., Sadaghiani, J. S., & Astaneh, M. R. (2017). The mediation role of supply chain integration in the relationship between employee commitment with organisational performance. International Journal of Business Information Systems, 24 (2), 210–226. https://doi.org/10.1504/IJBIS.2017.081447

Horn, P., Scheffler, P., & Schiele, H. (2014). Internal integration as a pre-condition for external integration in global sourcing: A social capital perspective. International Journal of Production Economics, 153 , 54–65. https://doi.org/10.1016/j.ijpe.2014.03.020

Hsu, L. C., & Wang, C. H. (2012). Clarifying the effect of intellectual capital on performance: The mediating role of dynamic capability. British Journal of Management, 23 (2), 179–205. https://doi.org/10.1111/j.1467-8551.2010.00718.x

Huang, M. C., Yen, G. F., & Liu, T. C. (2014). Reexamining supply chain integration and the supplier's performance relationships under uncertainty. Supply Chain Management: An International Journal, 19 (1), 64–78. https://doi.org/10.1108/SCM-04-2013-0114 .

Huo, B. (2012). The impact of supply chain integration on company performance: An organizational capability perspective. Supply Chain Management: An International Journal, 17 (6), 596–610. https://doi.org/10.1108/13598541211269210

Huo, B., Ye, Y., & Zhao, X. (2016). The impact of human capital on supply chain integration and competitive performance. International Journal of Production Economics, 178 , 132–143. https://doi.org/10.1016/j.ijpe.2016.05.009

Jajja, M. S. S., Chatha, K. A., & Farooq, S. (2018). Impact of supply chain risk on agility performance: Mediating role of supply chain integration. International Journal of Production Economics, 205 , 118–138. https://doi.org/10.1016/j.ijpe.2018.08.032

Kline, P. (2015). A handbook of test construction (psychology revivals): introduction to psychometric design. Routledge. https://doi.org/10.4324/9781315695990

Kozlenkova, I. V., Samaha, S. A., & Palmatier, R. W. (2014). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42 , 1–21. https://doi.org/10.1007/s11747-013-0336-7

Kwon, I. W. G., & Suh, T. (2004). Factors affecting the level of trust and commitment in supply chain relationships. Journal of Supply Chain Management, 40 (1), 4–14. https://doi.org/10.1111/j.1745-493X.2004.tb00165.x

Lee, H. L., & Whang, S. (2000). Information sharing in a supply chain. International Journal of Manufacturing Technology and Management, 1 (1), 79–93. https://doi.org/10.1504/IJMTM.2000.001329

Leuschner, R., Rogers, D. S., & Charvet, F. F. (2013). A meta-analysis of supply chain integration and firm performance. Journal of Supply Chain Management, 49 (2), 34–57. https://doi.org/10.1111/jscm.12013

MacKenzie, S. B., & Podsakoff, P. M. (2012). Common method bias in marketing: Causes, mechanisms, and procedural remedies. Journal of Retailing, 88 (4), 542–555. https://doi.org/10.1016/j.jretai.2012.08.001

Marchet, G., Melacini, M., & Perotti, S. (2018). Business logistics models in omni-channel: A classification framework and empirical analysis. International Journal of Physical Distribution & Logistics Management, 48 (4), 439–464. https://doi.org/10.1108/IJPDLM-09-2016-0273

Menguc, B., Auh, S., & Yannopoulos, P. (2014). Customer and supplier involvement in design: The moderating role of incremental and radical innovation capability. Journal of Product Innovation Management, 31 (2), 313–328. https://doi.org/10.1111/jpim.12097

Merrilees, B., Rundle-Thiele, S., & Lye, A. (2011). Marketing Capabilities: Antecedents and implications for B2B SME performance. Industrial Marketing Management, 40 (3), 368–375. https://doi.org/10.1016/j.indmarman.2010.08.005

Napolitano, L. (1997). Customer-supplier partnering: A strategy whose time has come. Journal of Personal Selling & Sales Management, 17 (4), 1–8. https://doi.org/10.1080/08853134.1997.10754105

Naranjo-Gil, D. (2009). Management information systems and strategic performances: The role of top team composition. International Journal of Information Management, 29 (2), 104–110. https://doi.org/10.1016/j.ijinfomgt.2008.05.009

Narasimhan, R., & Kim, S. W. (2002). Effect of supply chain integration on the relationship between diversification and performance: Evidence from Japanese and Korean firms. Journal of Operations Management, 20 (3), 303–323. https://doi.org/10.1016/S0272-6963(02)00008-6

Nunnally, J. C. (1978). An overview of psychological measurement. Clinical diagnosis of mental disorders: A handbook , 97–146. https://doi.org/10.1007/978-1-4684-2490-4_4

Ouakouak, M. L., Ouedraogo, N., & Mbengue, A. (2014). The mediating role of organizational capabilities in the relationship between middle managers’ involvement and firm performance: A European study. European Management Journal, 32 (2), 305–318. https://doi.org/10.1016/j.emj.2013.03.002

Pakurár, M., Haddad, H., & Nagy, J. (2019). The impact of supply chain integration and internal control on financial performance in the Jordanian banking sector. Sustainability, 11 (5), 1248. https://doi.org/10.3390/su11051248

Petit, Y. (2012). Project portfolios in dynamic environments: Organizing for uncertainty. International Journal of Project Management, 30 (5), 539–553. https://doi.org/10.1016/j.ijproman.2011.11.007

Podsakoff, P. M., MacKenzie, S. B., & Lee, J.-Y. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88 (5), 879. https://doi.org/10.1037/0021-9010.88.5.879

Ponsignon, F., Smith, J. S., & Smart, A. (2020). Development and validation of a measurement scale for the experience capability construct. Journal of Service Managemen, t, 32 (3), 315–345. https://doi.org/10.1108/JOSM-11-2019-0353

Robertson, J., Caruana, A., & Ferreira, C. (2021). Innovation performance: The effect of knowledge-based dynamic capabilities in cross-country innovation ecosystems. International Business Review . https://doi.org/10.1016/j.ibusrev.2021.101866.101866

Rodríguez, N. G., Pérez, M. J. S., & Gutiérrez, J. A. T. (2008). Can a good organizational climate compensate for a lack of top management commitment to new product development? Journal of Business Research, 61 (2), 118–131. https://doi.org/10.1016/j.jbusres.2007.06.011

Ruel, S., El Baz, J., Ivanov, D. & Das, A. (2021). Supply chain viability: Conceptualization, measurement, and nomological validation. Annals of Operations Research ,  335 , 1107–1136. https://doi.org/10.1007/s10479-021-03974-9

Schoenherr, T., & Swink, M. (2012). Revisiting the arcs of integration: Cross-validations and extensions. Journal of Operations Management, 30 (1–2), 99–115. https://doi.org/10.1016/j.jom.2011.09.001

Shou, Y., Li, Y., & Park, Y. (2018). Supply chain integration and operational performance: The contingency effects of production systems. Journal of Purchasing and Supply Management, 24 (4), 352–360. https://doi.org/10.1016/j.pursup.2017.11.004

Siagian, H., & Tarigan, Z. J. H. (2021). The impact of top management commitment, green purchasing, and supply chain management practices on operational performance  (Doctoral dissertation: Petra Christian University).  https://repository.petra.ac.id/id/eprint/19181

Song, G., & Song, S. (2021). Fostering supply chain integration in omni-channel retailing through human resource factors: Empirical study in China’s market. International Journal of Logistics Research and Applications, 24 (1), 1–22. https://doi.org/10.1080/13675567.2020.1713305

Sood, A., James, G. M., & Tellis, G. J. (2012). Predicting the path of technological innovation: SAW vs. Moore, Bass, Gompertz, and Kryder. Marketing Science, 31 (6): 964–979. https://doi.org/10.1287/mksc.1120.0739

Staeh, L. (2010). Understanding the role of managerial agency in achieving business benefits from ERP systems. Information Systems Journal, 20 (3), 213–238. https://doi.org/10.1111/j.1365-2575.2008.00316.x

Swink, M. (2000). Technological innovativeness as a moderator of new product design integration and top management support. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association, 17 (3), 208–220. https://doi.org/10.1111/1540-5885.1730208

Takase, M., Maude, P., & Manias, E. (2005). Nurses’ job dissatisfaction and turnover intention: Methodological myths and an alternative approach. Nursing & Health Sciences, 7 (3), 209–217. https://doi.org/10.1111/j.1442-2018.2005.00232.x

Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28 (13), 1319–1350. https://doi.org/10.1002/smj.640

Teece, D. J. (2019). A capability theory of the firm: An economics and (strategic) management perspective. New Zealand Economic Papers, 53 (1), 1–43. https://doi.org/10.1080/00779954.2017.1371208

Teece, D. J., Pisano, G., & Shuen, A. (1990). Firm capabilities, resources and the concept of strategy,. Economic analysis and policy working paper EAP 38, University of California .

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management , 18(7): 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

Teece, D. J. (2017). Dynamic capabilities and (digital) platform lifecycles. Entrepreneurship, innovation, and platforms . Emerald Publishing Limited, pp.211–225. https://doi.org/10.1108/S0742-332220170000037008

Thanh Nhon, H., Van Phuong, N., & Quang Trung, N. (2020). Exploring the mediating role of dynamic capabilities in the relationship between intellectual capital and performance of information and communications technology firms. Cogent Business & Management, 7 (1), 1831724. https://doi.org/10.1080/23311975.2020.1831724

Thun, J. H., & Müller, A. (2010). An empirical analysis of green supply chain management in the German automotive industry. Business Strategy and the Environment, 19 (2), 119–132. https://doi.org/10.1002/bse.642

Tian, H., Dogbe, C. S. K., & Pomegbe, W. W. K. (2021a). Organizational learning ambidexterity and openness, as determinants of SMEs’ innovation performance. European Journal of Innovation Management, 24 (2), 414–438. https://doi.org/10.1108/EJIM-05-2019-0140

Tian, H., Otchere, S. K., & Coffie, C. P. (2021b). Supply chain integration, interfirm value co-creation and firm performance nexus in Ghanaian SMEs: Mediating roles of stakeholder pressure and innovation capability. Sustainability, 13 (4), 2351. https://doi.org/10.3390/su13042351

Tzempelikos, N. (2015). Top management commitment and involvement and their link to key account management effectiveness. Journal of Business & Industrial Marketing, 30 (1), 32–44. https://doi.org/10.1108/JBIM-12-2012-0238

Visamitanan, K., & Assarut, N. (2021). Impact of green supply chain management practices on employee engagement and organizational commitment: Mediating role of firm performance. Global Business Review., 10 (1177/09721509211018569), 09721509211018569. https://doi.org/10.1177/09721509211018569

Wong, C. Y., Boon-Itt, S., & Wong, C. W. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29 (6), 604–615. https://doi.org/10.1016/j.jom.2011.01.003

Wu, L., Chuang, C.-H., & Hsu, C.-H. (2014). Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective. International Journal of Production Economics, 148 , 122–132. https://doi.org/10.1016/j.ijpe.2013.09.016

Ye, X., Ren, S., & Li, X. (2020). The mediating role of psychological capital between perceived management commitment and safety behavior. Journal of Safety Research, 72 , 29–40. https://doi.org/10.1016/j.jsr.2019.12.004

Yen, H. R., & Niehoff, B. P. (2004). Organizational citizenship behaviors and organizational effectiveness: Examining relationships in Taiwanese banks. Journal of Applied Social Psychology, 34 (8), 1617–1637. https://doi.org/10.1111/j.1559-1816.2004.tb02790.x

Young, R., & Poon, S. (2013). Top management support—almost always necessary and sometimes sufficient for success: Findings from a fuzzy set analysis. International Journal of Project Management, 31 (7), 943–957. https://doi.org/10.1016/j.ijproman.2012.11.013

Yu, Y., & Huo, B. (2018). Supply chain quality integration: Relational antecedents and operational consequences. Supply Chain Management: An International Journal, 23 (3), 188–206. https://doi.org/10.1108/SCM-08-2017-0280

Zhang, M., Guo, H., & Huo, B. (2019). Linking supply chain quality integration with mass customization and product modularity. International Journal of Production Economics, 207 , 227–235. https://doi.org/10.1016/j.ijpe.2017.01.011

Zhao, X., Huo, B., & Flynn, B. B. (2008). The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. Journal of Operations Management, 26 (3), 368–388. https://doi.org/10.1016/j.jom.2007.08.002

Zhao, X., Huo, B., & Selen, W. (2011). The impact of internal integration and relationship commitment on external integration. Journal of Operations Management, 29 (1–2), 17–32. https://doi.org/10.1016/j.jom.2010.04.004

Zhu, Y., Quansah, P. E., & Obeng, A. F. (2022). High-performance work systems and safety performance in the mining sector: exploring the mediating influence of workforce agility and the moderating effect of safety locus of control. Current Psychology, 42, 25100–25126 (2023). https://doi.org/10.1007/s12144-022-03606-w

Download references

The research was supported by the National Social Science Foundation of China (NSSFC;18BGL255).

Author information

Authors and affiliations.

Jiangsu University, School of Management, Zhenjiang, China

Timothy Amoako, Hao Chen, Stephen Abiam Danso & Edem Segbefia

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Timothy Amoako .

Ethics declarations

Conflicting interests.

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Additional information

Publisher's note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Amoako, T., Chen, H., Danso, S.A. et al. The Role of Top Management Involvement and Supply Chain Integration on Smes’ Innovation Performance: Moderation Impact of Firm Experience Capability. J Knowl Econ (2024). https://doi.org/10.1007/s13132-024-02166-7

Download citation

Received : 15 April 2024

Accepted : 14 June 2024

Published : 28 June 2024

DOI : https://doi.org/10.1007/s13132-024-02166-7

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Top management involvement
• Supply chain integration
• Firm experience capability
• Innovation performance
• Find a journal
• Publish with us
• Track your research

Critical Factors in Supply Management of Industrialised Building System Components for Island Construction Project: A Case Study of Perhentian Island

• Abu Hanifah Yusof Civil Engineering Department, Politeknik Kota Bharu, KM 24 Kok Lanas 16450 Ketereh, Kelantan, Malaysia.
• Mohd Hanizun Hanafi Faculty of Architecture and Ekistics, Universiti Malaysia Kelantan, Karung Berkunci No. 01, 16300, Bachok, Kelantan, Malaysia.
• Muhammad Hadi Mustafa Centre for Building, Construction & Tropical Architecture (BuCTA), Faculty of Built Environment, Universiti Malaya, Jalan Profesor Diraja Ungku Aziz, 50603, Kuala Lumpur, Malaysia.
• Shardy Abdullah Faculty of Architecture and Ekistics, Universiti Malaysia Kelantan, Karung Berkunci No. 01, 16300, Bachok, Kelantan, Malaysia.
• Anita Rauzana Civil Engineering Department, Universitas Syiah Kuala, Banda Acheh, 50603, Nanggroe, Acheh Darul Salam, Indonesia

The importance of construction based on the industrialised building system (IBS) approach in accelerating the achievement of development objectives cannot be denied, including in countries such as Malaysia. In fact, this system has been given a new lease of life in the construction industry development plan lately to strengthen its contribution to the country. The availability of building materials from the mainland of Peninsular Malaysia is a crucial factor for the successful installation of IBS components at construction sites. Therefore, the objective of this study is to identify the critical factors in the supply management of IBS components at the Pulau Perhentian, Terengganu’s construction site. In order to achieve the objective of this study, a qualitative study that is a structured interview with sixteen (16) construction contractors, three (3) each from supplier companies and transport ships/vessel or ‘barges’ that are directly involved in the supply of this IBS components have been carried out. Seven (7) critical factors have been identified which are: 1) compliance with government directives; 2) accuracy of work planning and scheduling; 3) the contractor’s current financial position is good; 4) good relationship (tolerance) between contractor and supplier; 5) availability of components; 6) availability of transport ship/vessel or ‘barge’ and machinery; and 7) able to predict weather conditions. These critical factors can be used as a useful basis in providing a more effective industrialised building system-based project implementation environment in the future on Perhentian Island in particular and other islands in general. The findings of this study have opened up a new research space towards providing a more perfect environment for the implementation of management activities for the supply of IBS components at the construction site.

Most read articles by the same author(s)

• Mustafa, M.H., Mohd-Rahim, F.A., Chia, L.K., The Role of 5D Building Information Modelling in Construction Project Cost Management: An Overview and Future Directions , Journal Of Project Management Practice (JPMP): Vol. 3 No. 1 (2023)
• Hanafi, M.H., Abdullah, S., Hasan, R., Ahmad, H., Rauzana, A., Critical Success Factors of Building Materials Availability at Construction Sites Using a Qualitative Approach , Journal Of Project Management Practice (JPMP): Vol. 3 No. 1 (2023)
• Faizul Azli Mohd Rahim, Noor Hidayati Ismail, Shazanur Qistina, Nurul Safwah Mohd Yusoff, Muhammad Hadi Mustafa, Mazura Mahdzir, Contributing Factors on the Effectiveness of Green Building Using the GBI Tool: A Case Study of Putrajaya Energy Commission Building , Journal Of Project Management Practice (JPMP): Vol. 4 No. 1 (2024)

Information

• For Readers
• For Authors
• For Librarians

Make a Submission

JOURNAL OF PROJECT MANAGEMENT PRACTICE (JPMP)

FACULTY OF BUILT ENVIRONMENT, UNIVERSITI MALAYA,

KUALA LUMPUR

Email : [email protected]

E-ISSN : 2805-4768

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Supplier Relationship Management: A Case Study in the Context of Health Care

2009, Journal of Theoretical and Applied Electronic Commerce Research

Related Papers

Journal of Theoretical and Applied Electronic Commerce Research

Tobias Mettler

Structural changes and increasing market dynamics in the health care sector intensify the hospitals' needs for cost-savings and process optimization. The adoption of new information and communication technology (ICT) is thereby seen as opportunity to improve not only efficiency and effectiveness but also the quality of health services. As costs for drugs continuously increase, especially hospital pharmacies will be in

Journal of theoretical and applied electronic …

María Verónica Alderete

International Journal of Healthcare Information Systems and Informatics

Journal of theoretical and applied electronic commerce research

ABSTRACT The design of business models is of decisive importance and as such it has been a major research theme in service and particularly electronic markets. Today, different definitions of the term and ideas of core constructs of business models exist. In this paper we present a unified vocabulary for business models that builds upon the elementary perception of three existing, yet very dissimilar ontologies for modeling the essence of a business. The resulting unified business model vocabulary not only condenses existing knowledge, but also tries to concatenate and (thematically) group the identified constructs into domain, enterprise, and value concepts. The resulting vocabulary helps business model designers in shaping the basic notions of their businesses.

Shubhashis Kumar Shil

Auctioning multi-dimensional items is a key challenge, which requires rigorous tools. This study proposes a multi-round, first-score, semi-sealed multi-attribute reverse auction system. A fundamental concern in multi-attribute auctions is acquiring a useful description of the buyers’ individuated requirements: hard constraints and qualitative preferences. To consider real requirements, we express dependencies among attributes. Indeed, our system enables buyers eliciting conditional constraints as well as conditional preferences. However, determining the winner with diverse criteria may be very time consuming. Therefore, it is more useful for our auction to process quantitative data. A challenge here is to satisfy buyers with more facilities, and at the same time keep the auctions efficient. To meet this challenge, our system maps the qualitative preferences into a multi-criteria decision rule. It also completely automates the winner determination since it is a very difficult task for buyers to estimate quantitatively the attribute weights and define attributes value functions. Our procurement auction looks for the outcome that satisfies all the constraints and best matches the preferences. We demonstrate the feasibility and measure the time performance of the proposed system through a 10-attribute auction. Finally, we assess the user acceptance of our requirements specification and winner selection tool.

Raul Valverde , Raafat Saadé

The paper examines the effect of E-Supply Chain Management Systems in the North American electronics manufacturing services industry. A causal and descriptive research study was conducted based on a survey applied to thirty six individuals in electronic manufacturing services firms in order to determine the impact of e-supply chain management on their key supply chain operations. Results of the research revealed that e-supply chain management had a positive effect in the electronic manufacturing services industry as these showed that the profits of the firm increased and internal communications were improved due to the implementation of e-supply chain management. The research also showed that e-supply chain management systems have many technical issues such as problems with process automation and transmission of supply chain data, e-procurement effectiveness, integration with existing systems and the monitoring of inventory systems and purchasing process. Several recommendations are made to overcome these challenges including employee training and re-engineering of business processes for better system integration.

carlos cares

Yulissa Anguis Fuster * Industria y Negocios *

Dr. Hatice CALIPINAR

E-procurement is a deriving benefit attained from technological enhancements rather than using traditional a paper based method in procurement operations. The main objectives of this study are observing the usage ratio of technological equipment in operations which are closely related with e-procurement activities and potential methods for improving the general performance in hospitals. A case study strategy is taken as a research strategy for attaining information from the investigated hospitals and data collection methods of semi structured interviews and nonparticipant observations are used. From the perspective of e-procurement, more technological tools can be used for activities in pharmacies, and drug flow from doctor to patient can be improved. Application of the proposed advice given to pharmacies operating in hospitals can ensure significant time and money savings without too much time or financial investment. Presenting the situation of e-procurement adoption for pharmacie...

ENTERPRISE INFORMATION SYSTEMS

Kyung Jin Cha

Nowadays, information technology (IT) outsourcing companies face enduring demands to reduce cost while increasing productivity. This pressure leads many IT outsourcing companies to rely on outsourcing arrangements with IT personnel suppliers. In order to maximise efficiency, outsourcing companies have focused on fostering high-performing suppliers through improved collaboration and mutual relations. However, it is very difficult to advance to a long-term partnership using the existing outsourcing process because of insufficient collaboration between IT outsourcing companies and their suppliers. Based on collaboration perspective of supply chain management (SCM), this study identifies the critical success factors for collaborative strategic partnerships and presents an evaluation framework for assessing and managing suppliers. We have developed an organisational process model for Supplier relationship management (SRM)-based collaboration which includes some of the key constructs from the previous studies and interviews with the IT outsourcing industry people. In this study, we will identify four types of strategic suppliers and suggest approaches for improving collaborative relationship between an IT outsourcing company and its partner companies. In addition, to validate the feasibility of the proposed model, we applied it to a well-known Korean IT outsourcing company ‘A’.

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

Dawn Gregg , Steven Walczak

Iris Junglas

Alejandro Valencia-Arias , Luis German Ruiz Herrera

Virpi Tuunainen

Mariela Rico , Maria Laura Taverna

Andreja Pucihar

Ian Macinnes

Proceedings of the 4th International Conference on Design Science Research in Information Systems and Technology - DESRIST '09

pamela marendi

Sergio Godoy

Lakshman Krishnamurthi

Nicolás M . Somma , Claudia Labarca , Sergio -etcheverry

Fredrick Muema

Celia Fabiola Vásquez García

Tanja Kaurin

Silvana Dakduk

Josefin Lassinantti

Andrea Resca , Paolo Spagnoletti , Stefano Za

Martin Otundo Richard

Syed Saburul Alam

Avinash Shukla

E+M Ekonomie a Management

Julita Markiewicz-Patkowska

Piers Campbell

Gianluigi Viscusi

Efthymios Constantinides

Luigi Mittone

Ahmad Samed Al-Adwan

Samuel Fosso Wamba

Arnold Kamis

riyanti isaskar

Nikolaos Matsatsinis

Prof A. Selvarasu

Efthymios Constantinides , María del Carmen Alarcón del Amo

Yao-hua Tan

Delfina Soares

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024