Power-based supplier selection in product development projects

  • Authors:

  • Marc Zolghadri;Claudia Eckert;Salah Zouggar;Philippe Girard

  • Affiliations:

  • IMS-Bordeaux Labs, Bordeaux University, 351, Cours de la Liberation, 33405 Talence Cedex, France;Design Group, DDEM, The Open University, Milton Keynes, Walton Hall MK7 6AA, UK;IMS-Bordeaux Labs, Bordeaux University, 351, Cours de la Liberation, 33405 Talence Cedex, France;IMS-Bordeaux Labs, Bordeaux University, 351, Cours de la Liberation, 33405 Talence Cedex, France

  • Venue:
  • Computers in Industry
  • Year:
  • 2011

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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.