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Gosling, J, Naim, M, Towill, D and Moone, B (2014) The impact of supplier development initiatives on key performance indicators. In: Raiden, A and Aboagye-Nimo, E (Eds.), Proceedings 30th Annual ARCOM Conference, 1-3 September 2014, Portsmouth, UK, Association of Researchers in Construction Management, 1049–58.
- Type: Conference Proceedings
- Keywords: supplier development; performance measure; relationship; supply chain management
- ISBN/ISSN: 978-0-9552390-8-3
- URL: http://www.arcom.ac.uk/-docs/proceedings/ar2014-1049-1058_Gosling_Naim_Towill_Moone.pdf
- Abstract:
It is frequently posited that supplier development and long term partnerships are an effective way of gaining a competitive edge. However, due to the lack of regularity in demand patterns in project based industries, some researchers have questioned the effectiveness of such initiatives. Exploiting a unique and interesting longitudinal dataset gathered from a global construction companyÕs archival records, the aim of this paper is to analyse the impact of supplier development initiatives on Key Performance Indicators (KPIs). Supplier KPIs, recorded on a database, are analysed for a range of suppliers from the 1990s to 2013. Suppliers are organised into relational categories for the analysis, including Ôlong term strategic partnersÕ, Ôsome partnerships arrangementsÕ and Ôlittle partnership arrangementsÕ. The highest performing group was the long term strategic partners, in both average performance scores and the consistency of those scores. We also conclude that suppliers with limitedÊpartneringÊarrangementsÊperformÊlessÊwellÊonÊthe project 'closeÊout'ÊKPI.