Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers
Objective: Evaluate the impact of a second supply source on price, quality and stock levels at the purchasing company. Relevance: The supply strategy defines how many suppliers an item should have and where it should be located. If working with a single supplier may bring relational benefits, workin...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2017-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123052461005 |
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| author | André Luis de Castro Moura Duarte Rafael Borges de Souza Flávio Romero Macau Leandro Januario de Souza |
| author_facet | André Luis de Castro Moura Duarte Rafael Borges de Souza Flávio Romero Macau Leandro Januario de Souza |
| author_sort | André Luis de Castro Moura Duarte |
| collection | DOAJ |
| description | Objective: Evaluate the impact of a second supply source on price, quality and stock levels at the purchasing company. Relevance: The supply strategy defines how many suppliers an item should have and where it should be located. If working with a single supplier may bring relational benefits, working with multiple sources may reduce opportunism risks. If a local supplier reaps benefits on account of its proximity, a global supplier may result in lower costs. Methodology: The quasi-experimental method was used to follow-up a purchasing policy change at an auto parts company, which took on a second supply source for low complexity items. The research collected data on costs, quality and stock coverage for 1,480 items between 2007 and 2012, analysing new supplier’s entrance and location. Results: Introducing a second supplier reduced the price, especially when a new international supplier was introduced. Decreases in quality or increases in stock coverage were not observed. |
| format | Article |
| id | doaj-art-fcecfdb450c7497eaf10d759a89c93dc |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2017-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-fcecfdb450c7497eaf10d759a89c93dc2025-02-06T23:39:31ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2017-01-01145528543Supply Strategy: A Quasi-Experiment on the Number And Location of SuppliersAndré Luis de Castro Moura DuarteRafael Borges de SouzaFlávio Romero MacauLeandro Januario de SouzaObjective: Evaluate the impact of a second supply source on price, quality and stock levels at the purchasing company. Relevance: The supply strategy defines how many suppliers an item should have and where it should be located. If working with a single supplier may bring relational benefits, working with multiple sources may reduce opportunism risks. If a local supplier reaps benefits on account of its proximity, a global supplier may result in lower costs. Methodology: The quasi-experimental method was used to follow-up a purchasing policy change at an auto parts company, which took on a second supply source for low complexity items. The research collected data on costs, quality and stock coverage for 1,480 items between 2007 and 2012, analysing new supplier’s entrance and location. Results: Introducing a second supplier reduced the price, especially when a new international supplier was introduced. Decreases in quality or increases in stock coverage were not observed.http://www.redalyc.org/articulo.oa?id=123052461005supply strategysingle suppliermultiple suppliersglobal supplyquasiexperiment |
| spellingShingle | André Luis de Castro Moura Duarte Rafael Borges de Souza Flávio Romero Macau Leandro Januario de Souza Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers BBR: Brazilian Business Review supply strategy single supplier multiple suppliers global supply quasi experiment |
| title | Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers |
| title_full | Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers |
| title_fullStr | Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers |
| title_full_unstemmed | Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers |
| title_short | Supply Strategy: A Quasi-Experiment on the Number And Location of Suppliers |
| title_sort | supply strategy a quasi experiment on the number and location of suppliers |
| topic | supply strategy single supplier multiple suppliers global supply quasi experiment |
| url | http://www.redalyc.org/articulo.oa?id=123052461005 |
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