Managing and developing suppliers: can SCM be adopted by SMES?

Abstract

The aim of the research is to investigate whether it is possible for the smaller organization to undertake supplier development activities. A review of the literature identifies that the furniture industry, on which this paper focuses, has been overlooked in terms of supply-chain (SC) research. This research adopted a case-study approach, which included both with the lead organization (assembler/customer) and a number of their suppliers. Semi-structured interviews were conducted with various personnel within the lead organization and their suppliers. Company documentation and field notes were also employed. A three-stage model was used to communicate the different activities that the assembler employed in order to engage their suppliers. This model details the internal and external drivers for change and the outcomes in terms of approved suppliers and preferred suppliers, and eventually working towards strategic partners. The findings include the benefits of SC activities that the smaller organization can achieve, but also consider the issues around limited resources. The paper concludes that supply-chain management is appropriate for the smaller organization and recommends further testing of the generic model proposed by this study.

Keywords:

• Supply-chain management
• Small and medium-sized enterprises
• Supplier development
• Change

Acknowledgements

The author would like to thank the referees for their valuable comments and the organizations that participated in this study. Without their time and assistance, this research would not have been possible.