Title: Supply supplier integration, procurement, and outsourcing: case study of SCM social capital benefits

Authors: Alan D. Smith; William T. Rupp

Addresses: Department of Management and Marketing, Robert Morris University, Pittsburgh, PA 15219-3099, USA ' Austin Peay University, Clarksville, TN 37044, USA

Abstract: Supplier selection and integration are important decisions faced by management, as supply chain management (SCM) and inventory management are both integral to efficient operations and the ability to compete in the global marketplace. The nature of supplier selection forces managers to choose between conflicting criteria, such as quality and cost, in order to evaluate the decision. As such, this problem can become increasingly complex as multiple criteria and multiple suppliers become involved. Using a case-study method, as on stakeholder theory, the present study explored the importance of SCM and review how Heinz has worked with Ariba to further enhance its capability to approach this important operations management topic. It was found that through collaborative relationships between the two Pittsburgh-based firms, they were able to share risks, access complementary resources, reduce transaction costs, and enhance productivity.

Keywords: case study; operations strategy; supply chain management; SCM; supplier collaboration; supplier integration; stakeholder theory; supplier selection; procurement; outsourcing; social capital benefits; Heinz; Ariba; operations management; collaborative relationships; risk sharing; complementary resources; transaction costs; productivity.

DOI: 10.1504/IJLSM.2013.051340

International Journal of Logistics Systems and Management, 2013 Vol.14 No.2, pp.221 - 241

Published online: 28 Jun 2013 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article