Procurement performance and supplier management measurement issues: A case of Malaysian private company

The rising material and operational cost for manufacturers in medical device industry is of concern to many organizations. As such, it is imperative to measure the procurement and supplier's performance for competitive advantage and provide a framework to stakeholders for continuous improvement...

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Main Authors: Nawi, M.N.M, Songappenm, M., Nadarajan, Shanthi, Siti Halipah, Ibrahim, Mustapha, R.
Format: Article
Language:English
Published: ExcelingTech 2017
Subjects:
Online Access:http://ir.unimas.my/id/eprint/16523/
http://ir.unimas.my/id/eprint/16523/7/Procurement.pdf
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author Nawi, M.N.M
Songappenm, M.
Nadarajan, Shanthi
Siti Halipah, Ibrahim
Mustapha, R.
author_facet Nawi, M.N.M
Songappenm, M.
Nadarajan, Shanthi
Siti Halipah, Ibrahim
Mustapha, R.
author_sort Nawi, M.N.M
building UNIMAS Institutional Repository
collection Online Access
description The rising material and operational cost for manufacturers in medical device industry is of concern to many organizations. As such, it is imperative to measure the procurement and supplier's performance for competitive advantage and provide a framework to stakeholders for continuous improvement. This paper develops a procurement and supplier performance measurement system at a firm by conducting a review of literature in procurement performance measurement and supplier performance measurement. Through the key components of supply chain together with the resources, procedures and output, a model was developed. Additionally, a system was established with a set of generic measures and six perspectives. The case study conducted at the firm applies to the model developed to describe the procurement department within the supply chain activities. Results indicate that supply chain department has already made a good progress in measuring procurement process through the implementation of supplier development program. Few areas that needed to be measured include cycle time of delivery, order processing time, effectiveness, efficiency and reliability. While a lot of hard work was involved, the advantages of establishing a measurement system outweigh the costs and efforts involved in its implementation. Results of key performance index measurements provide stakeholders with critical information on efficiency and effectiveness of the procurement department's work.
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spelling unimas-165232022-06-22T01:44:06Z http://ir.unimas.my/id/eprint/16523/ Procurement performance and supplier management measurement issues: A case of Malaysian private company Nawi, M.N.M Songappenm, M. Nadarajan, Shanthi Siti Halipah, Ibrahim Mustapha, R. TA Engineering (General). Civil engineering (General) TS Manufactures The rising material and operational cost for manufacturers in medical device industry is of concern to many organizations. As such, it is imperative to measure the procurement and supplier's performance for competitive advantage and provide a framework to stakeholders for continuous improvement. This paper develops a procurement and supplier performance measurement system at a firm by conducting a review of literature in procurement performance measurement and supplier performance measurement. Through the key components of supply chain together with the resources, procedures and output, a model was developed. Additionally, a system was established with a set of generic measures and six perspectives. The case study conducted at the firm applies to the model developed to describe the procurement department within the supply chain activities. Results indicate that supply chain department has already made a good progress in measuring procurement process through the implementation of supplier development program. Few areas that needed to be measured include cycle time of delivery, order processing time, effectiveness, efficiency and reliability. While a lot of hard work was involved, the advantages of establishing a measurement system outweigh the costs and efforts involved in its implementation. Results of key performance index measurements provide stakeholders with critical information on efficiency and effectiveness of the procurement department's work. ExcelingTech 2017 Article PeerReviewed text en http://ir.unimas.my/id/eprint/16523/7/Procurement.pdf Nawi, M.N.M and Songappenm, M. and Nadarajan, Shanthi and Siti Halipah, Ibrahim and Mustapha, R. (2017) Procurement performance and supplier management measurement issues: A case of Malaysian private company. International Journal of Supply Chain Management, 6 (1). pp. 246-253. ISSN 2051-3771 http://ojs.excelingtech.co.uk/index.php/IJSCM/article/view/1620
spellingShingle TA Engineering (General). Civil engineering (General)
TS Manufactures
Nawi, M.N.M
Songappenm, M.
Nadarajan, Shanthi
Siti Halipah, Ibrahim
Mustapha, R.
Procurement performance and supplier management measurement issues: A case of Malaysian private company
title Procurement performance and supplier management measurement issues: A case of Malaysian private company
title_full Procurement performance and supplier management measurement issues: A case of Malaysian private company
title_fullStr Procurement performance and supplier management measurement issues: A case of Malaysian private company
title_full_unstemmed Procurement performance and supplier management measurement issues: A case of Malaysian private company
title_short Procurement performance and supplier management measurement issues: A case of Malaysian private company
title_sort procurement performance and supplier management measurement issues: a case of malaysian private company
topic TA Engineering (General). Civil engineering (General)
TS Manufactures
url http://ir.unimas.my/id/eprint/16523/
http://ir.unimas.my/id/eprint/16523/
http://ir.unimas.my/id/eprint/16523/7/Procurement.pdf