Power-based supplier selection in product development projects

Zolghadri, Marc; Eckert, Claudia; Zouggar, Salah and Girard, Philippe (2011). Power-based supplier selection in product development projects. Computers in Industry, 62(5) pp. 487–500.

DOI: https://doi.org/10.1016/j.compind.2010.12.001

Abstract

As stronger supplier might exert their power to influence a product development project for their own benefit, business negotiations will be more efficient if the customer has a clear understanding of its power with regards to each of its potential suppliers. This article takes the customer perspective in dealing with supplier selection and proposes a method to estimate the power of a customer versus potential suppliers. Based on an evaluation of their power, potential suppliers are then ranked. This selection procedure is illustrated with an example and evaluated against a case study taken from academic literature.

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