Research report presented to SBL, Unisa, Midrand. / There is a dearth of literature on how buyer-supplier relationships are organised in industries in developing countries. In this study, we drew on the existing theoretical framework on buyer-supplier relationships to establish the nature of buyer-supplier relationships in the Zimbabwean tobacco industry. Managers may use these findings as a foundation for further research on how these relationships can be improved and to gauge their current position to enable planning for strategic positioning in global competitive markets.

<p>Globalization has made it easier for multinational companies (MNC) to expand theirmarkets and sell their products abroad by means of dealers. Different characteristicssuch as size, growth rate, and number of competitors determine profitability of thedifferent markets. When dealers belong to marginal markets, they can sometimesperceive discrimination from the MNC since they are considered less profitable thanthe large country markets. It is easy to find market and industry analyses,nevertheless, there are very few authors that bring up the issue about how the localdealer in a marginal market can motivate its supplier to co-operate as efficiently aswith the high profit market.  The aim of our study is to describe and analyze the network relationship between theMNC and its distributor, for this purpose chapter one gives a brief description of ourcase company, it describes our problematization, it states our research questions andthe purpose of our study. Chapter two describes the methodology used to conduct ourresearch and study. Chapter three introduces the theoretical approaches used as a basefor our analysis. Chapter four is an account of all our empirical findings. Chapter fiveis the analysis of the case study and chapter six contains our conclusions andrecommendations. Overall, we propose that although the dealers from marginal markets are often theones that frequently need big support from the MNC to grow and be more profitable,they also need to improve their internal operations in order to improve theirperformance and look more attractive for the MNC.</p>

No description available.

Globalization has made it easier for multinational companies (MNC) to expand theirmarkets and sell their products abroad by means of dealers. Different characteristicssuch as size, growth rate, and number of competitors determine profitability of thedifferent markets. When dealers belong to marginal markets, they can sometimesperceive discrimination from the MNC since they are considered less profitable thanthe large country markets. It is easy to find market and industry analyses,nevertheless, there are very few authors that bring up the issue about how the localdealer in a marginal market can motivate its supplier to co-operate as efficiently aswith the high profit market.  The aim of our study is to describe and analyze the network relationship between theMNC and its distributor, for this purpose chapter one gives a brief description of ourcase company, it describes our problematization, it states our research questions andthe purpose of our study. Chapter two describes the methodology used to conduct ourresearch and study. Chapter three introduces the theoretical approaches used as a basefor our analysis. Chapter four is an account of all our empirical findings. Chapter fiveis the analysis of the case study and chapter six contains our conclusions andrecommendations. Overall, we propose that although the dealers from marginal markets are often theones that frequently need big support from the MNC to grow and be more profitable,they also need to improve their internal operations in order to improve theirperformance and look more attractive for the MNC.

Until several years ago, organizations mainly focused on optimizing business processes within organizational boundary. Enterprise Resource Planning (ERP) software had been a hot issue for companies to improve their operations. Towards the end of last century however, organizations increasingly included supply chain management, customer relationship management, and supplier relationship management in their roadmap for implementing information technology. Business-to-business (B2B) transactions and collaboration between organizations have received increasing attention. E-Procurement is an important issue of B2B transaction and collaboration. Stiff competition, fast changing customer preferences, shortening product life cycle, and product variety proliferation have pushed modern manufacturing industries to be more flexible to cope with their environments. Along with dynamic capacity allocation, efficient material procurement forms a pillar to support flexible manufacturing. Therefore, the implementation of e-procurement system in enterprise is an inevitable trend. Then the next issue comes to what benefit occur from e-procurement system? Most past research have addressed the benefit issue based on the case study of single enterprise. Little investigation has conducted quantitative research to assess the performance with respect to supplier and buyer. How to estimate the impact on performance for both of buyer and supplier as a result of implementing e-procurement system is the research issue addressed in this project. Given the web-based e-procurement system as the enterprise procurement platform, this research attempts to address the direct impact on business processes for buyers and suppliers simultaneously, and subsequently to evaluate the impact on performance for them. In addition, this research also intends to investigate the impact on relationship between buyers and suppliers. In fact, the motivation of supplier in implementing e-procurement system might be different from that of buyer, leading to different results which might occur. The questionnaire survey conducted in this research can help to evaluate the performance for buyers and suppliers.

Dynapac GmbH is a manufacturer of road construction equipment and has historically been acquired and merged with several companies, resulting in an expansion of their supplier base. Currently, they are experiencing a large supplier base within direct material causing a decrease in the effectiveness and efficiency in the management of the suppliers. Dynapac GmbH therefore wishes to lower the number of suppliers in order to obtain desired effects, such as cost savings, reduction of administrative workload, higher control, higher quality and improved communication with suppliers. The purpose of the study is therefore to develop a methodology that describes all the activities needed to successfully reduce the number of suppliers. At the moment, approximately 80 percent of the total purchasing budget is allocated to only 14 percent of the supplier base. The supplier base can therefore be assumed to consist of a high number of suppliers supplying only a few products with a low turnover. Based on this, it can be concluded that the supplier base includes several opportunities for supplier base reduction. The action of reducing the supplier base is perceived as being in line with the sourcing strategy as well as the business strategy and the needed support is therefore believed to be present in order to succeed with performing supplier base reduction. Based on existing research, a conceptual model for supplier base reduction was created. The current situation at Dynapac GmbH was thereafter analysed in order to enable a customization of the model. Interviews were held to obtain input regarding the model and the activities. The overall view on the model was positive and all activities were considered to be relevant to include. Possible customizations of the activities were discussed during the interviews, which resulted in a customized model consisting of activities with either two types of customizations: (1) defined variables or (2) developed processes. Lastly, the model was validated in a pilot test before it was reconfigured and handed over as a methodology. The finalized methodology included a thorough description on how to conduct supplier base reduction from beginning to end, consisting of 14 activities corresponding to five different phases. The first two phases intend to lay the basis for enabling a reduction of the supplier base and the third phase aims at implementing it in practice. The fourth phase consists of analysing the result of the implementation followed by the last phase with focus on continuous improvement of the supplier base.

The automotive supplier industry and the relationship between car manufacturers and suppliers has been confronted with major changes resulting from OEMs' strategy of stronger product integration and the building of so-called systems, sub-systems and components and segmentation of the supplier industry. Former valid work processes, division of work, organisational structures and also, the general manufacturer-supplier relationship has been subject to intensive evaluation and appropriate adaptation to the changed circumstances. This research project aims to investigate these changes in the European car industry in greater detail, particularly: The OEMs' system-building strategy What requirements OEMs must meet at the individual supplier levels (system, sub-system, component) and The main factors involved in the development of a more efficient relationship between OEMs and suppliers. To achieve this object, various activities were undertaken including the collecting of information from previous studies, preparing standardised questionnaires and performing investigations within the European car industry and also at a major automotive supplier. The work is based on empirical investigations and personal interviews conducted with key persons in automobile companies and automotive suppliers with the aim of painting a picture of the future situation and developing a proposal based on the information compiled. Finding answers to the above-mentioned issues may be very important and useful in determining internal organisational structure and resource allocation and in making strategic decisions in respect of alliances and collaborations when preparing one's own business for the even fiercer competition that will face automobile suppliers in the future.

No description available.

M.Comm. / The primary objective of this dissertation is to perform an analysis of supplier relationship management practices in Eskom. Currently, Eskom is facing pertinent challenges such as a diminished reserve margin, increased unplanned generation plant outages as well as coal supply and quality constraints coupled with ever-rising primary energy costs. Since 1994, the demand for electricity has grown significantly on the back of robust economic growth. As a result, Eskom’s power system has an inadequate reserve margin which is at an all time low of around 8% and this does not compare well with the international standard of 15%. It is therefore evident that, as a national asset Eskom cannot overcome the current challenges successfully without strong partnerships with key suppliers. Impact of global expansion in the power sector has seen increased demand for utility specific commodities, and the resultant implication is the increased pressure on utilities to secure supply. Significant energy pressures are impacting on traditional procurement systems; as supply tightens it is vital for Eskom to intensify their efforts to build and sustain long-term collaborative relationships with key suppliers. With a more strategic view of procurement, companies are increasingly finding that different types of supplier relationships should be managed differently to achieve maximum value. Supplier relationship management has become increasingly sophisticated; buyer and supplier preferences are driven by circumstances in any relationship. The relationship portfolio analysis as explained by Cox, Sanderson and Watson (2000) demonstrates that buyer and supplier relationships centre on power, interdependence, and independence and they agree that relationships can be of an arms’ length, adversarial and collaborative nature depending on the power and style of management. Electricity is an important sector in the South African (SA) economy, despite its relatively small share of the Gross Domestic Product (GDP). Eskom has a capital expenditure budget of R800-billion for the next 20 years (Venter, 2007). An overview of the electricity industry in SA covering key highlights on the evolution of thinking on energy developments in the country and the resultant implication for supplier relationship management is discussed. Eskom supplies about 95 percent of South i Africa's electricity, and the recent power crisis had far-reaching implications for the economy. Some economists say that Eskom’s power crisis could slice two percentage points off SA’s growth rate, sending it below 3% for the first time in a decade.

Strategic procurement items, including complex engineered equipment and systems essential for project performance, are frequently designed, manufactured, and delivered by suppliers who are outside the circle of cooperation between owner, engineer, and contractor. When suppliers are excluded from the design and planning stages of a project, much of the knowledge needed for successful design and integration is lost or underutilized. This research was done as part of a Construction Industry Institute sponsored project to develop and quantify a step change to the EPC process that will bring the supplier into the circle of cooperation between the owner, engineer, and contractor. The result was a step change entitled PEpC (Procure, Engineer, procure, and Construct). This research also sought to provide implementation guidelines for the recommended step change. Through an examination of the literature, a survey of industry experts, and the review of four case studies, this research found that PEpC, the step change recommended by the Construction Industry Institute research team, may reduce both the time and cost required to complete a project. The anticipated savings in project duration is expected to fall between 10 and 15 percent, while the anticipated reduction in project direct labor cost is expected to fall between 4 and 8 percent. / Master of Science