Buyer‐focused operations as a supply chain strategy

Taco van der Vaart · Dirk Pieter van Donk

46 citations0/0 files storedInternational Journal of Operations & Production Management

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Quality and Supply Management Supply Chain and Inventory Management Outsourcing and Supply Chain Management

Abstract

Purpose Buyer‐focused operations aim at a high level of supply chain alignment by singling out resources for one buyer in order to serve this buyer optimally. The purpose of this paper is to identify what business characteristics make suppliers choose buyer‐focused operations as a supply chain strategy in their relationships with key buyers. Design/methodology/approach A broad range of qualitative and quantitative data was collected during interviews and plant visits in a multi‐case study research design. Nine units and 42 supply links with key buyers were investigated and analysed. Findings The suppliers choose buyer‐focused operations for different reasons. As expected, some of them choose buyer‐focused operations to fulfil the buyer's requirements in terms of flexibility (mix, volume, specification and timing). However, in other situations, buyer‐focus is used for other reasons: mostly to perform additional assembly operations. Suppliers rarely consider buyer‐focus of core production technology in relationships with buyers for which cost and speed are the main order‐winners. Research limitations/implications The study is based on a relatively small number of cases. Although the findings confirm the theoretical framework, more empirical work is needed to better understand different forms of buyer‐focus. Further research should also point out if and how mutual trust and risk dispersal influence decisions to invest in buyer‐focused resources. Practical implications The results of this paper help managers in choosing between different forms of buyer‐focus, based on the specific characteristics of a supply chain link. Originality/value The paper introduces focus into the domain of supply chain management and shows that striving for close cooperation in a supply relationship needs to be carefully considered and depends on the business characteristics. The paper contributes also to a better understanding of the concept of buyer‐focus and distinguishes different types.

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References

2004Case Study Research 1976Markets and Hierarchies: Analysis and Antitrust Implications.2002Case research in operations management 1997What is the Right Supply Chain for Your Product 2001Arcs of integration: an international study of supply chain strategies 2010Operations management 1998Building operations management theory through case and field research 1989Integrating the Supply Chain

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