The topic of the journal article is the classification of supply chain (Ahmed et al. 2017). The relationships of supply chain have significant theoretical as well as practical uses. Moreover, the relationships of supply chain are not homogenous as organisations use different process, metrics, people, and mentalities in order to manage different supply chain relationships. Managers deal with thousands of supply chain relationships and they have to decide at the level of relationship; so, the classification of relationships into practicable types is the very necessary.
Sillanpaa et al. (2014) wrote the journal article on the topic supplier development and stratigies of buyer-supplier relationship. They identified that supplier development is the determination of producers in order to improve the performance of suppliers and well as enahnce their number. This study has significance fo the competitive market as proper management of suppliers is essentail to gain the competitive advantage. Companies need to have the strategic viewpoint for suppliers before making the decisions for making purchases.
The topic at which Loppacher et al. (2011) wrote is important drivers of buyer-supplier relationships in startegies of global soucring. Purchase centarlization, as well as supply source internatioanlisation define the Startegies of global sourcing. Moreover, coordination and additional mechanism used with suppliers and development progarms of supplier for the success of startgies for global sourcing. Particularly, supplier developemnet strategy is identified as the important competitive action in order to improve the performance of supply, to improve the abilities of supplier, and to develop the relationship with suppliers. This journal article has significance in showing how behaviour patterns of global sourcing startegy is relavant to the purchasing centralisation and suplly source globalisation and how it consitute the important factor at paly with startegies of suplier management. This research shows how global sourcing strategy behaviour patterns, related to supply source globalisation and purchasing centralisation, constitute a key factor at play with supplier management strategies.
Literature Critique
The work of Ahmed et al. (2017) is important in identifying the relationships of supply chain and is considered as very significant activity for the organisation in order to be competitive. Lee and Whang (2000) argued that organisation rely on supply chain partners in order meet the expectation of customers. Moreover, two kinds of relationships, process-focused as well as NPD-focused were identified by the authors that they are similar in ralational requirements. Further, this article provide the insight to managers how to classify the relationships of supply chain. Sunasekaran et al. (2001) aslo identifed that classification of supply chain relationship is the necessary to evaluate the relationships at each category to develop the standardized processes.
The work of Sillanpaa et al. (2014) has many strengths as he identifed that strategic management of suppliers is necessary for the organisation to be in the competitive market. The startegic view point is important for the organisations for suppliers that reflects the purchasing function. Theoretical point of view for the development of supplier and relationship of buyer-supplier is elaborated by the author. Moreover, author argued that social exchange theory is beneficial for the comprehensive view of supplier development, constancy of reltionship between buyer and supplier. Cropanzano et al. (2002) social exchange theory descibe the trust level and commitement between suplluer and buyer in the procurement.
The work of Loppacher et al. (2011) has some weaknesses such as there is less support of study to the effectiveness of buyer-supplier coordination and supplier development strategy. Moreover, the author could not measure the effect of supplier development strategy on the buyer-supplier relationships performance. Further, the outdated longitudinal analyses on the development of relationship of buyer-supplier is used. The work of author has positive outcomes in the describing the importance of global sourcing strategies. Global sourcing strategies have been developed by the multinational companies since long to improve the efficiency as well as efficacy in the activities of global purchasing, therefore, Global sourcing strategies are helpful for the organisations safe the competitive advantage.
Kotabe and Murray (2004) identified that global sourcing strategies are significantly important for the exploitation the benefits of purchases of products in order to find best available source. Quintens et al. (2006) Global sourcing strategies are important for purchase centralisation to combine processes, technologies and polices that are by the procurements units. This article used the multiple case study in research to seek the complex understanding of variables, and dynamics.
Impact on Procurement
The work of Ahmed et al. (2017) is of great importance in the context of procurement as it provide insights to relationship of buyer–supplier. Organisations as well as practitioners can use information of archetypes in making portfolio of relationship for effective decisions at the buyer-supplier relationship. The relationship of buyer-supplier is important in the process of procurement.
The work of Sillanpaa et al. (2014) has positive impact on the prcurement as author identified some important ideas. He identified that in developemnt process of supplier, bothe suppliers and buyers hould consider the alignment process, and investment amount as well as cultures to enhace the performance and capabilities of supplier. Moreover, he identified that buyers should understand the sturucture in order to maintein the appropriate long-term relationship with good suppliers. Further, he identifie that suppliers should focused on the buyer developemnt process for effective decisions.
The work of Loppacher et al. (2011) has significant impact in the context of procurement as it offers a healthier understanding of supplier development strategies. Multinational companies implement the strategies for supplier management for the development of supplier, and cooperation to improve the work practices. Moreover, author identified that MNCs that implement local purchasing strategies having domestic sourcing practices prefer informal as well as uncompetitive management strategies.
