Graduate School of Business Leadership / MBL

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: Purchasing strategies impact on the value added to operations by the items included in the specific purchasing strategy. In mechanised mining operations the mining equipment plays a significant role in the production process as it is the primary production tools. This study reviews literature on the application of buyer-supplier collaboration to purchasing strategies in order to improve the value added to operations and focus on mining equipment purchasing. Most authors agree that the origin of this type of relationship is the adoption of the production management concept of Just-in-Time. Models for buyer supplier collaboration include one dimensional models such as the Traditional and Advanced Supply Management model, Models on the automotive industry, and Supplier partnerships. The one dimensional models mainly compare traditional market type supplier relationships to advanced partnership or relational type relationships. The models reviewed also include multi-dimensional models such as the portfolio management models and the strategic supplier segmentation model. These multidimensional models propose the adoption of a variety of supplier management models based on certain contextual parameters relating to the purchase and expands on the one dimensional models. The benefits of buyer-supplier collaboration include reduced inventory, increased inventory turnover, reduced scrap, increased quality, reduced costs, improved delivery reliability, design and productivity, reductions in lead time, and additional effort from suppliers. The risks associated with buyer-supplier collaboration include significant resource requirements, lack of support from suppliers, shifting of inventory, industry type exclusivity, higher switching costs, and increase in supplier's power. Buyer-supplier collaboration has certain requirements to be successful. These include a fundamental change in the purchasing strategy relating to supplier selection criteria, number of sources and time horizon, multi-dimensional evaluations, a move to single-sourcing and long term relationships. The development of buyer-supplier collaboration is dependant on similarity in industry and technology, prior experiences change, effective communication and information sharing, and experiential learning. Other success factors include two-way information sharing, top management support, shared goals, early communication to suppliers of specification changes or new products, suppliers adding distinctive value, total quality management initiatives and Just-in-time initiatives. The models for buyer-supplier collaboration form the basis of most discussions on implementation. The main implementation guidelines reviewed include the implementation of operational links relating to design, logistics and quality. The more complete implementation models include the model for Five phases in the development and evolution of purchasing partnerships. The most complete models are the portfolio management models to supplier relationship management which includes contextual analysis as well as relationship analysis and implementation. Portfolio management models were found to be the most applicable to application in industries other than manufacturing. The final part of this study applies the theory to mining equipment purchases. The theory and application of buyer-supplier collaboration were developed for the manufacturing industry and therefore several issues arise in the application of these approaches in the mining industry. No significant literature was found relating to the application of buyer-supplier collaboration to mining equipment purchasing strategies. Applying the portfolio management approach to the mining equipment purchase and suppliers, reveals that mining equipment purchases are strategic in nature and buyer-supplier collaboration is the applicable management approach. Several areas of possible value add were identified and include acquisitions costs, replacement parts, efficiency and productivity of mining equipment. The initial review of the implementation of buyer-supplier collaboration at a mining operation reveals early performance improvements in terms of service levels. The review also indicates the existence of some of the risks associated with this type of relationship, mainly the shifting of inventory to the supplier.

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: This research report presents a framework for designing a procurement strategy using the concept of Power. Companies like Toyota have pioneered the use of the “lean thinking” concept of supply chain management to ensure that the entire supply chain co-operates to build a competitive advantage that saves money and provides a better product to the consumer. The basis of the “lean thinking” concept has been that buyers no longer treat suppliers as adversaries with the sole objective of leveraging the best price but engage with suppliers to develop long-term strategic relationships based on trust and collaboration. Power has always existed in business relationships. Power and the “lean thinking” concept appear to be unable to co-exist in the same supply chain relationships as one deals with trust and collaboration while the other deals with domination. This research reports shows that power and “lean thinking” can co-exist and that power has the potential to play a key role in understand the dynamics present in supply chain relationships both from the perspective of the buyer and the supplier. By mapping the power relationship between parties in the Supply Chain a company can understand the strategic options available to it to increase its impact on the supply chain and to use its position to leverage the best value possible both towards the other parties in the supply chain and to parties operating in competing supply chains. The power relationship between The South African Breweries Ltd and Consol Glass will be mapped to enable SAB to understand its available strategic options for the design of a 3 to 5 year procurement strategy. The strategies that crystallize from the power mapping process will be analysed with a view to selecting a single option that the SAB procurement function could adopt over the next 3 to 5 years. / AFRIKAANSE OPSOMMING: Hierdie navorsingsverslag bied 'n raamwerk vir die ontwerp van 'n verkrygingstrategie met behulp van die konsep van mag. Maatskappye soos Toyota het met die gebruik van die “soepel denke”-konsep met betrekking tot aanvoerkettingbestuur baanbrekerswerk gedoen om te verseker dat die algehele aanvoerketting saamwerk om 'n mededingende voordeel te skep wat geld spaar én 'n beter produk aan die verbruiker bied. Die grondslag van die “soepel denke”-konsep is dat kopers nie meer verskaffers as teenstanders beskou en ten alle koste bloot die beste prys wil bewerkstellig nie, maar dat kopers in der waarheid deesdae nouer by verskaffers betrokke raak om langtermyn- strategiese bande op grond van vertroue en samewerking te smee. Mag was nog altyd deel van sakeverhoudinge. Mag en die “soepel denke”-konsep kon tot op hede skynbaar nie naas mekaar in dieselfde aanvoerkettingverhouding bestaan nie – die een handel op stuk van sake oor vertroue en samewerking, en die ander oor oorheersing. Hierdie navorsingsverslag toon dat mag en “soepel denke” wél gelyktydig kan bestaan en dat mag 'n sleutelrol kan speel om die dinamiek in aanvoerkettingbestuursverhoudinge, uit die koper sowel as die verskaffer se oogpunt, te begryp. Deur die magsverhoudinge tussen verskillende partye in die aanvoerketting af te beeld, kan 'n maatskappy verstaan watter strategiese opsies beskikbaar is om sy impak op die aanvoerketting te vergroot en sy posisie te gebruik om vir die ander partye in die aanvoerketting, sowel as partye in mededingende aanvoerkettings, die beste moontlike waarde te bekom. Vervolgens sal die magsverhouding tussen Suid-Afrikaanse Brouerye (SAB) Bpk. en Consol Glass afgebeeld word sodat SAB sy beskikbare opsies vir die ontwerp van 'n drie- tot vyfjaarverkrygingstrategie kan verstaan. Die strategieë wat uit dié magafbeeldingsproses na vore kom sal ontleed word met die oog daarop om 'n enkele opsie te kies wat SAB oor die volgende drie tot vyf jaar kan aanvaar.

published_or_final_version / Industrial and Manufacturing Systems Engineering / Doctoral / Doctor of Philosophy

published_or_final_version / Real Estate and Construction / Master / Master of Science in Construction Project Management

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / abstract / toc / Industrial and Manufacturing Systems Engineering / Master / Master of Philosophy

This study deals with the Distributed Buying Problem, that is, the problem faced by geographically distributed businesses when it comes to optimising buyer time and global businesses resources. It adopts a software agent-based approach to the problem. A literature survey was carried out to review the relatively new field of software agents and mobile agents in particular. The role of agents in electronic commerce was also studied. A mobile agent system was then designed and implemented to serve as a proof-ofconcept system for an agent-based solution to the problem. The design and implementation are then discussed. / Thesis (M.Sc.)-University of Natal, Durban, 2002.

Graduate School of Business Leadership / MBL

by Fung Kwok-on, Patrick. / Thesis (Ph.D.)--Chinese University of Hong Kong, 1994. / Includes bibliographical references (leaves 177-195). / ABSTRACT --- p.i / TABLE OF CONTENTS --- p.iv / LIST OF FIGURES --- p.vii / LIST OF TABLES --- p.ix / ACKNOWLEDGEMENTS --- p.x / Chapter CHAPTER ONE --- INTRODUCTION / Analysis of Competitiveness at Different Levels --- p.2 / Firm- in- environment --- p.6 / Cooperative Relationships Between Firms --- p.10 / Supplier Relationship as a Context of Study --- p.14 / Electronics Firms in Hong Kong as a Study Sample --- p.17 / Chapter CHAPTER TWO --- REVIEW OF LITERATURE / Perspectives of Environment-organisation Interface and Inter-organisational Relationship --- p.22 / Development of the Studies of Inter-organisational Relationship --- p.29 / Governance of Inter-firm Relationship --- p.34 / Cost-oriented Inter-firm Relationship --- p.34 / Structural Dependence as Governance --- p.37 / Social Governance Structure --- p.39 / "Norms, Relationalism and Relational Performance" --- p.49 / "Norms, Transorganisational Structure and Performance" --- p.54 / Supplier Relationship and Relational Performance --- p.62 / Chapter CHAPTER THREE --- RESEARCH DESIGN / Purpose of Study --- p.70 / Scope of the Study --- p.74 / Conceptual Framework --- p.77 / Dependent Variable --- p.77 / Explanatory Variables --- p.83 / Moderating Variables --- p.90 / Research Setting --- p.96 / Sample and Informants --- p.99 / Hypotheses --- p.105 / Measures Development --- p.117 / Chapter CHAPTER FOUR --- DATA ANALYSIS / Measure Validations --- p.122 / Testing of Hypotheses --- p.130 / Interpretations of Findings --- p.136 / Cost and Centralisation --- p.136 / Quality and Centralisation --- p.138 / Innovation and Connectedness --- p.139 / Responsiveness and Formalisation --- p.140 / Responsiveness and Connectedness --- p.140 / Chapter CHAPTER FIVE --- CONCLUSION / Contribution of the Study --- p.146 / Limitations --- p.150 / Future Research --- p.155 / APPENDIX A Some Data about Hong Kong's Electronics Industry --- p.158 / APPENDIX B List of Products Classified in Electronics Industry of Hong Kong (Product Code :383) --- p.160 / APPENDIX C Summary of Five Representative Company Cases in Helping to Set Hypotheses for the Study --- p.162 / "APPENDIX D Questionnaire Used for the Project ""Buyer- Seller Relationship & Relational Performance for Competitors""" --- p.168 / BIBLIOGRAPHY --- p.177