Work

The threat to core competence posed by developing closer supply chain relationships

Year: 2006

Type: article

Abstract: Supply bases have been rationalised and now fewer “preferred” suppliers are in direct contact with customers, who demand more personal attention and greater responsiveness from them. In developing closer supplier relationships, the exchange of proprietary information becomes more likely and also the potential loss of core competences. This paper assesses the applicability to UK aerospace companies of supplier models by Cox and Kraljic that link relationship types to core competence. During the research a method of procurement was uncovered in which the customer placed a team of engineers to work with competing suppliers to develop their bids. In doing so, the customer absorbed technical knowledge from the supplier. The customer's objective was to obtain acceptable technical offers from both suppliers. This method delivered best value to the customer, but may be in breach of competition law.

Source: International Journal of Logistics Research and Applications

DOI: 10.1080/13675560600859524

Authors: Glenn Parry, Andrew Graves, Mike James-Moore

Institutions: University of Bath, University of Warwick

Language: English

Topic: Quality and Supply Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

Funders: University of Warwick, Intelligent Manufacturing Research Center