An integrative framework for supplier relationship management

TLDR

Many studies have examined aspects of supplier relationship management such as purchasing strategy, supplier selection, and collaboration, yet none have proposed an integrative concept, focusing instead on domain‑specific problems. This paper proposes an integrative SRM framework by analyzing comprehensive approaches to all SRM functions. The authors reviewed SRM literature from an integrative perspective, developed a framework, and validated it through an analytic hierarchy process case study with a field survey. The framework is expected to improve SRM efficiency and effectiveness by highlighting interrelated functions, enabling purchasing teams to assess key features before and during operation, and offering holistic criteria and recommendations. Applying the framework requires careful consideration of limited evaluation tools for objective supplier performance assessment.

Abstract

Abstract Purpose – There have been many studies on topics related to supplier relationship management (SRM), namely purchasing strategy, supplier selection and development, and collaboration with suppliers. However, these studies have not suggested a solution based on an integrative concept, as they focus only on domain‐specific problems. To overcome this limitation, the purpose of this present paper is to suggest a framework for an integrative SRM system by analyzing comprehensive approaches to overall SRM functions. Design/methodology/approach – The paper reviewed and analyzed studies related to SRM from an integrative viewpoint, proposed a framework for an integrative SRM system, and performed a case study based on the analytical hierarchy process with a field survey. Findings – The paper expects that the proposed framework can play a major role in enhancing the efficiency and effectiveness of SRM by adopting an integrative concept because the functions of SRM are highly interrelated. Furthermore, it verifies the applicability of the framework via a case study. Research limitations/implications – Not many approaches are available for organizing evaluators or evaluation sheets, which are used for selecting criteria, providing weight, and evaluating supplier performance, that can secure objectivity of the evaluation; thus, when applying this framework to the industry, special consideration is needed. Practical implications – The proposed framework allows the purchasing members to scrutinize key features of SRM before and during the SRM system operation. Originality/value – The paper provides useful knowledge about the role of SRM systems by holistically approaching SRM‐related processes while suggesting criteria and recommendations to a purchasing manager.