Indicators for relationships management between suppliers; logistics service providers and buyers: developing and testing a structural relationship model
DOI:
https://doi.org/10.53848/jlsco.v11i3.278477Keywords:
Logistics service providers, Buyers, Supplier relationship management, Structural relationship modelAbstract
This research examines the indicators for selecting logistics service providers, and the factors influencing buyer-provider relationships with a sample size of 260 electronics companies by Structural Equation Modeling (SEM) analysis and included six in-depth interviews with buyer managers. Key findings include the importance of service attentiveness, issue resolution, and customer engagement, while the organizational structure of providers was less critical. Attentiveness significantly enhances trust but must be coupled with effective, polite communication for strong relationships. Price is the primary factor in provider selection, while communication is essential for maintaining procurement relationships. Providers should focus on attentiveness and clear communication to build trust, alongside competitive pricing. Furthermore, in-depth interviews revealed that counterproductive relationships are more common in large companies whereas smaller companies have more collaborative relationships due to their size and closer interactions.
References
Aghazadeh, S. (2003). How to choose an effective third-party logistics provider? Management Research News, 26(7), 50–58. https://doi.org/10.1108/01409170310783583.
Boonching, P. (2020). Increasing efficiency of purchasing and supplier management of Provincial Electricity Authority Region 2 Northeast (Ubon Ratchathani Province). Independent Study of the Degree of Master, Thammasat University.
Changju, K., & Katsuyoshi, T. (2018). The impact of retail buyer innovativeness on suppliers’ adaptive selling in Japanese buyer–supplier relationships. Journal of Marketing Channels, 25(4), 173–183. https://doi.org/10.1080/1046669X.2019.1658011.
Chotipanich, C. (2020). Factors affecting the relationship between suppliers and procurement. Journal of Business Administration and Accountancy, 4(1), 1–16.
Easton, S., Hales, M. D., Schuh, C., Strohmer, M. F., & Triplat, A. (2014). Supplier relationship management: How to maximize vendor value and opportunity. Apress.
Filser, M., & Paché, G. (2005). Can we speak of a wheel of retail logistics? The contribution of the wheel of retailing model. The Proceedings of the 10th Logistics Research Network Conference, Logistics Research Network. 155–161.
Goldsmith, B. E. (1989). Work and family: Theory, research, and applications. Sage.
Gürcan, Ö. F., Domaç, İ., & Ülgen, O. F. (2016). Third-party logistics (3PL) provider selection with AHP application. The Proceedings of the 12th International Strategic Management Conference (ISMC 2016), 21–23 July 2016, Antalya, Turkey. Elsevier, 21–23.
Hongwichakit, K., Ratanawiboonsom, W., & Liamprecha, N. (2016). Purchasing performance to buyers and supplier relationships in automotive parts industry. Rajabhat Phra Nakorn Journal, Humanities and Social Sciences, 11(2), 11–24.
Huang, S. T., Bulut, E., & Duru, O. (2019). Service quality evaluation of international freight forwarders: Empirical research in East Asia. Journal of Shipping and Trade, 4, 14. https://doi.org/10.1186/s41072-019-0053-6.
Johnson, J. L., Sohi, R. S., & Grewal, R. (2004). The role of relational knowledge stores in interfirm collaboration. Journal of Marketing, 68(3), 21–36.
Khlaijai, K., & Charoentrakulpeeti, W. (2022). Factors affecting decision-making of providers of logistics transportation for agricultural processed food entrepreneurs in Sansai District, Chiang Mai Province. Journal of Peace Periscope, 3(2), 13–22.
Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, 61, 109–117.
Lambert, D. M., & Cooper, M. C. (2000). Issues in supply chain management. Industrial Marketing Management, 29(1), 65–83. https://doi.org/10.1016/S0019-8501(99)00113-3.
Leenders, M. R., Johnson, P. F., Flynn, A. E., & Fearon, H. E. (2006). Purchasing and supply management: With 50 supply chain cases. 13th ed.. McGraw Hill/Irwin.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. 6th ed. Cengage Learning.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1991). SERVQUAL: A multiple item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Poirier, C. C. (2006). Supplier relationship management (CSC proprietary report). Computer Sciences Corporation.
Porter, M. E., & Heppelmann, E. J. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11).
Roques, T., & Michrafy, M. (2003). Logistics service providers in France – 2002 survey: Actors, perceptions and changes in practices. Supply Chain Forum, 4(2), 34–52.
Ruangsriroj, T., & Vichitsiri, A. (2022). The factors influencing value creation of halal logistics service during a crisis: A case study of halal logistics service providers in Thailand. Asian Journal of Business Research, 1(2).
Sako, M. (1992). Prices, quality, and trust: Inter-firm relations in Britain and Japan. Cambridge University Press.
Sheth, J. N., & Sharma, A. (1997). Supplier relationships: Emerging issues and challenges. Industrial Marketing Management, 26(2), 91–100.
Shin, H., Collier, A., & Wilson, D. (2000). Supply management orientation and supplier/buyer performance. Journal of Operations Management, 18(3), 317–333. https://doi.org/10.1016/S0272-6963(99)00031-5.
Siguaw, J., Simpson, P., & Baker, T. (1998). Effects of supplier market orientation on distributor market orientation and the channel relationship: The distributor perspective. Journal of Marketing, 62(3), 99–111.
Siriporn, W. (2022). Demand of logistics service provider to electronic entrepreneur in Thailand. Journal of Management and Innovation, 17(1), 1–16.
Taweesak, T. (2007). Logistics management. Bangkok: Expernet. The Chartered Institute of Logistics and Transport. (2022). 7 Rs of logistics. Retrieved 10 June 2023, From: https://www.linkedin.com/pulse/7-rs-logistics-easybox- logistics-company/.
Vadee, T., & Suraraksa, J. (2022). Evaluation of factors for transportation service providers selection considering sustainability [Research report]. Burapha University Institutional Repository. http://ir.buu.ac.th/dspace/handle/1513/590.
Wachirawongpinya, B. (2011). Decision-making on the use of logistic services by businesses in AMATA Industrial Estate, Chonburi. Thesis of the Degree of Master, Burapha University Research Information.
Wiriyasuphapong, P. (2002). The development of composite indicators for academic excellence in universities [Research report]. NRCT Digital Repository of Innovation and Creativity (DRIC). https://dric.nrct.go.th/Search/SearchDetail/272418.