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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Autores principales: André Luis de Castro Moura Duarte, Rafael Borges de Souza, Flávio Romero Macau, Leandro Januario de Souza
Formato: article
Lenguaje:EN
PT
Publicado: FUCAPE Business School 2017
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Acceso en línea:https://doaj.org/article/fcecfdb450c7497eaf10d759a89c93dc
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spelling oai:doaj.org-article:fcecfdb450c7497eaf10d759a89c93dc2021-11-11T15:48:07ZSupply Strategy: A Quasi-Experiment on the Number And Location of Suppliers1807-734Xhttps://doaj.org/article/fcecfdb450c7497eaf10d759a89c93dc2017-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123052461005https://doaj.org/toc/1807-734XObjective: 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.André Luis de Castro Moura DuarteRafael Borges de SouzaFlávio Romero MacauLeandro Januario de SouzaFUCAPE Business Schoolarticlesupply strategysingle suppliermultiple suppliersglobal supplyquasiexperimentBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 14, Iss 5, Pp 528-543 (2017)
institution DOAJ
collection DOAJ
language EN
PT
topic supply strategy
single supplier
multiple suppliers
global supply
quasi
experiment
Business
HF5001-6182
spellingShingle supply strategy
single supplier
multiple suppliers
global supply
quasi
experiment
Business
HF5001-6182
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
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
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
title 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_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_sort supply strategy: a quasi-experiment on the number and location of suppliers
publisher FUCAPE Business School
publishDate 2017
url https://doaj.org/article/fcecfdb450c7497eaf10d759a89c93dc
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AT rafaelborgesdesouza supplystrategyaquasiexperimentonthenumberandlocationofsuppliers
AT flavioromeromacau supplystrategyaquasiexperimentonthenumberandlocationofsuppliers
AT leandrojanuariodesouza supplystrategyaquasiexperimentonthenumberandlocationofsuppliers
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