3. Partnering as opposed to traditional purchasing3
4. Total quality management and supplier partnerships4
5. Research hypotheses and design.4
6. The Case Study5
1. Period A:- The initial operating period using traditional purchasing7
2. Period B:- The Partnership8
3. Period C:- A Change in suppliers.9
4. Period D:- Re-establishing the partnership10
LIST OF FIGURES & TABLES
1. Case output by time period6
2. Case output by timeline with slope profiles6
TABLE 1. Comparison of means6
Many North American have established partnering arrangements with their suppliers for the purpose of improving the quality of product or service offerings. Using longitudinal field study, the results of one firm use of supplier partnerships is examined from the perspective of continuous improvement in quality and productivity. This case study is unusual cause both partnering and no partnering approaches were employed during the course of this study, providing data for contrasting statistical analysis. The study shows the actual benefits achieved in productivity and quality from the firm’s supplier partnering activities. The implications for management along with the difficulties encountered in relating to traditional purchasing philosophy are discussed.
Terms like quality management and partnering, or strategic relationship with suppliers are unavoidably linked. Quality guru Dr. Edward Deming has recommended limiting the supply base and forming single source relationships to reduce the sources of variance in incoming product quality. In past several case studies have appeared in the literature that highlight the benefits of that can accumulate from the supplier partnerships. For example Cambell Soup Company case study, but unfortunately those case studies do not necessarily prove that supplier partnerships are the cause of improvement.
The purpose of this study is to examine the interrelationship between Total Quality Management (TQM) and supplier partnering activities outside of the automotive sector. In this study a carton manufacturer was involved in a TQM program that included supplier partnering activity with a buyer. In this study, carton supplier was subjected to traditional purchasing practices by the buyer when the alternate supplier was temporarily utilized. The implications of utilizing traditional purchasing practices are explored, as are the difficulties in developing purchasing partnerships without the commitment of top management.
PARTNERING AS OPPOSED TO TRADITIONAL PURCHASING
Partnership involves elements such as the use of long term contracts, a reduced number of supply sources, and a high degree of mutual trust between two parties. One researcher has defined strategic partnership as a “ mutual ongoing relationship involving a commitment over an extended period, and a sharing information and the risk and rewards of the relationships.”
There are five attributes of buyer-supplier relationships as researched by some scholars, as given below:-
1. A supply pool consisting of one or a preferred few suppliers.
2. An alliance incorporating a credible commitment between the buying and selling firms.
3. Joint problem solving activities.
4. An extensive exchange of information between firms.
5. Joint adjustment to marketplace conditions.
In contrast with the partnering approach, for a number of reasons, traditional purchasing methods typically involve the use of multiple sources for major materials, with relatively short term contracts awarded on the basis of competitive bidding. Multiple sources can provide quick recovery in the event of supply...