A multinomial modeling approach to assess supplier delivery performance for buyer-supplier alignment

Kuntal Bhattacharyya, Alfred L. Guiffrida, Milton Rene Soto-Ferrari, Paul Schikora
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Abstract

Purpose Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling is focused on penalizing suppliers for late deliveries built into a contractual transaction, which eventually erodes trust. As such, a holistic modeling technique focused on long-term relationship building is missing. This study aims to design a supplier evaluation model that analytically equates supplier delivery performance to cost realization while replicating a core attribute of successful supply chains – alignment, leading to long-term supplier relationships. Design/methodology/approach The supplier evaluation model designed in this paper uses delivery deviation as a unit of measure as opposed to delivery duration to enhance consistency with enterprise resource planning protocols. A one-sided modified Taguchi-type quality loss function (QLF) models delivery lateness to construct a multinomial probability penalty cost function for untimely delivery. Prescriptive analytics using simulation and optimization of the proposed mathematical model supports buyer–supplier alignment. Findings The supplier evaluation model designed herein not only optimizes likelihood parameters for early and late deliveries for competing suppliers to enhance total landed cost comparisons for on-shore, near-shore and off-shore suppliers but also allows for the creation of an efficient frontier toward supply base optimization. Research limitations/implications At a time of systemic disruptions such as the COVID pandemic, global supply chains are at risk of business continuity. Supplier evaluation models need to focus on long-term relationship modeling as opposed to short-term contractual penalty-based modeling to enhance business continuity. The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. Practical implications The results from this analytical approach offer flexibility to a supply manager toward building redundancies in the supply chain using an efficient frontier within the supply landscape, which also helps to manage disruption and maintain end-to-end fulfillment. Originality/value The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. The authors offer a rational solution by creating an evaluation model that uses penalty cost modeling as an internal quality measure to rate suppliers and uses the outcome as a yardstick for negotiations instead of imposing penalties within contracts.
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基于采购-供应商结盟的供应商交付绩效评估的多项建模方法
货物和服务的不及时交付,特别是在疫情后的情况下,是端到端履行的重要预兆。供应商交付建模的现有文献关注的是对合同交易中延迟交付的供应商进行惩罚,这最终会侵蚀信任。因此,缺乏一种专注于长期关系建立的整体建模技术。本研究旨在设计一个供应商评估模型,分析地将供应商交付绩效等同于成本实现,同时复制成功供应链的核心属性-一致性,从而导致长期的供应商关系。本文设计的供应商评估模型使用交付偏差作为度量单位,而不是交付持续时间,以增强与企业资源规划协议的一致性。利用单侧修正的田口质量损失函数(QLF)对交货延迟进行建模,构造了交货不及时的多项概率惩罚成本函数。使用模拟和优化所提出的数学模型的规定性分析支持买方-供应商对齐。本文设计的供应商评估模型不仅优化了竞争供应商的提前和延迟交付的可能性参数,从而增强了陆上、近岸和离岸供应商的总到岸成本比较,而且还允许为供应基础优化创造一个有效的边界。在新冠疫情等系统性中断时期,全球供应链面临业务连续性的风险。供应商评估模型需要关注长期关系建模,而不是基于短期合同惩罚的建模,以增强业务连续性。本文中提供的模型以一致性为基础,一致性是成功的供应链集成的基石,并且提供了与这一类型的传统建模技术的有趣区别。这种分析方法的结果为供应经理提供了灵活性,使他们能够利用供应领域内的有效边界在供应链中建立冗余,这也有助于管理中断并保持端到端的履行。本文中提供的模型以一致性为基础——一致性是成功的供应链集成的基石,并且提供了与这一类型的传统建模技术的有趣区别。作者通过创建一个评估模型提供了一个合理的解决方案,该模型使用惩罚成本模型作为对供应商进行评级的内部质量度量,并使用结果作为谈判的尺度,而不是在合同中施加惩罚。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
9.40
自引率
0.00%
发文量
31
期刊介绍: The Journal of Global Operations and Strategic Sourcing aims to foster and lead the international debate on global operations and strategic sourcing. It provides a central, authoritative and independent forum for the critical evaluation and dissemination of research and development, applications, processes and current practices relating to sourcing strategically for products, services, competences and resources on a global scale and to designing, implementing and managing the resulting global operations. Journal of Global Operations and Strategic Sourcing places a strong emphasis on applied research with relevant implications for both knowledge and practice. Also, the journal aims to facilitate the exchange of ideas and opinions on research projects and issues. As such, on top of a standard section publishing scientific articles, there will be two additional sections: "The Industry ViewPoint": in this section, industrial practitioners from around the world will be invited (max 2 contributions per issue) to present their point of view on a relevant subject area. This is intended to give the journal not just an academic focus, but a practical focus as well. In this way, we intend to reflect a trend that has characterised the past few decades, where interests and initiatives in research, academia and industry have been more and more converging to the point of collaborative relationships being a common practice. "Research Updates - Executive Summaries". In this section, researchers around the world will be given the opportunity to present their research projects in the area of global sourcing and outsourcing by means of an executive summary of their project. This will increase awareness of the on-going research projects in the area and it will attract interest from industry.
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