Sub-Supplier Management: A Buyer-Centric, Low-Tier Supply Chain Perspective (Contributions to Management Science)

This book highlights the latest research on sub-supplier management while also discussing its current state and related managerial challenges. It provides a process framework for managing sub-suppliers and an overview of the various buyer / sub-supplier relationships and their key characteristics. Furthermore, the respective chapters address essential capabilities to successfully manage sub-suppliers and to discuss how to overcome barriers and challenges associated with sub-supplier management. Concrete examples and cases are also provided, and, in closing, potential research opportunities are outlined and demonstrated. About the Book Contents Contributors Status Quo in Sub-supplier Management 1 Challenges and Risks Induced Through Sub-suppliers 1.1 A Step-by-Step Analysis of Current and Future Issues 1.2 A Broad Range of Typical Issues with Sub-suppliers 1.3 Supply Chain Risks: Extending the Scope of a Familiar Approach 1.4 Future External Developments and Their Effect on a Company ́s Supply Chain 1.5 Industry Case: An Airplane Manufacturer ́s Specific Challenges with Its Sub-suppliers 1.5.1 Background 1.5.2 Sub-supplier Challenges Encountered in the Past 1.5.3 General Risks in Supply Chains, not Encountered so Far 1.5.4 External Developments with the Anticipated Effect on the Supply Chain 2 Towards a Project Initiative in Sub-supplier Management 2.1 Creating Momentum for Sub-supplier Management 2.2 Objectives for Companies to Engage in a Sub-supplier Management Project Initiative 2.3 Creating a Broader Picture: Adding a General Supply Chain or Company Objectives 2.4 Consideration of Time and Budget Constraints 2.5 Case: Specific Objectives for Sub-supplier Project Initiative from a Swiss-Based Watch Manufacturer 2.5.1 Background 2.5.2 Objectives for Sub-supplier Management Projects 2.5.3 Matching Challenges and Objectives and Building a Business Case 2.5.4 Building a Business Case for Sub-supplier Management to Ensure Project Funds and Commitment Reference Buyer-Sub-supplier Relationships 1 Different Ways of Interacting with Sub-suppliers 1.1 Characteristics of Buyer-Sub-supplier Relationships 1.2 Analyzing Buyer-Sub-supplier Relationships Step by Step 1.3 Recommendation: Analysis of Current Interaction with Sub-suppliers 1.4 Three Industry Cases: Analysis of Interaction Types and Buying Power as Major Determining Factors 1.5 Case 1: SFS 1.5.1 Background Information on the SFS Group 1.5.2 SFS ́ Supplier Relationships 1.5.3 SFS ́ Buyer Relationships 1.6 Case 2: ThyssenKrupp Presta Steering 1.6.1 Background Information on ThyssenKrupp Presta Steering 1.6.2 TK Presta ́s Supplier Relationships 1.6.3 TK Presta ́s Buyer Relationships 1.7 Case 3: Weidenhammer 1.7.1 Background Information on Weidenhammer Packaging Group 1.7.2 Weidenhammer ́s Supplier Relationships 1.7.3 Weidenhammer ́s Buyer Relationships 2 Sub-supplier Management Practices 2.1 Three Main Categories of Sub-supplier Management Practices 2.2 The Most Common Sub-supplier Management Practices in Place 2.3 Analysis of Practices: Identify Success Factors 2.4 Existing Sub-supplier Management Practices: How Effective Are They and Do They Reach the Lower Tiers? 2.5 Case: Evaluation of the Delegation Practice in the Cacao Supply Chain upon Effectiveness and Reach 2.5.1 Background 2.5.2 Case Explanation References Introducing the Sub-supplier Management Framework 1 Current Sub-supplier Management Structures and Practices 1.1 Out-Sub-supplier Management Process 1.2 In-Sub-supplier Dissolution Management Process 2 Customization of the Future Sub-supplier Management Process Framework for the Implementation in Your Company 3 Case: Summarizing the Approach from Chapters 1 to 3 in an Example: Weleda (Fig. 3) 3.1 Background 3.2 Upcoming Challenges Regarding Sub-supplier Management and Sustainability 3.3 Weleda ́s Sustainability Objectives Are Closely Related to Sub-supplier Performance 3.4 Already Implemented Processes to Handle Challenges and Achieve Objectives 3.5 Potential and Requirements Regarding Improvement and Development of Practices and Processes 4 Customizing the Future Sub-supplier Management Process Framework at Weleda Reference Sub-supplier Management Capabilities 1 Core Capabilities for the Successful Management of Sub-suppliers 1.1 Organizational Structure and Competences 1.2 Industry Competence 1.3 IT Systems and Processes 1.4 Soft Skills 2 Recommendations: The Road to Sub-supplier Management Capabilities References The Concept of Sub-supplier Specific Investments as a Development Tool 1 The Concept of Placing Sub-supplier Specific Investments as a Buyer 1.1 Incident-Driven Sub-supplier Specific Investments 1.2 Proactive Sub-supplier Specific Investments 2 Classification of Sub-suppliers for Proactive Sub-supplier Specific Investments 2.1 The Criticality of the Sub-supplier 2.2 The Probability of Success when Placing Sub-supplier Specific Investments 2.3 Type I: Reduce 2.3.1 Recommendation for Action 2.4 Type II: Increase 2.4.1 Recommendation for Action 2.5 Type III: Analyze 2.5.1 Recommendation for Action 2.6 Type IV: Act 2.6.1 Recommendation for Action 3 Choice of Interaction Type in the Triad with According Safeguarding Mechanisms 3.1 Cooperation 3.2 Parallel 3.3 Backdoor 3.4 Double Agency 3.5 Bypass 3.6 Single Soldier 3.7 Ambush 3.8 Joint Purpose 3.9 Formal Safeguards 3.10 Informal Safeguards 4 Internal and External Barriers for Placing Sub-supplier Specific Investments as a Buyer 4.1 Internal Barriers 4.2 External Barriers References Sub-supplier Management and Sustainability 1 Introduction 2 Characterization of Sustainability with Regard to Supply Chains 3 Relevance of Sub-supplier Management for Sustainable Supply Chains 4 Empirical Investigation of Reasons for Sub-supplier Management: Research Methodology 5 Empirical Investigation of Reasons for Sub-supplier Management: Results 6 Outlook References Digitalization and Sub-supplier Management 1 Digitalization/Industry 4.0 and Supply Chains 1.1 Introduction 1.2 Key Drivers of Changes in Supply Chains 1.3 Digitalization of the Supply Chain 1.4 Necessary Competencies 1.5 Implications for the Management of Digital Supply Networks 1.6 Challenges 2 Applicability of Technologies in Supply Chains (Upstream) 2.1 Complexities in the Upstream Network 2.2 Alliances and Collaboration Throughout the Supply Chain with the Help of Technology 2.3 Integration and Management 2.4 The Use of Blockchains in the Supply Chain 2.5 Upstream Supplier Competition 2.6 Questions for Future Research References