The focus of this paper has been to develop a model that can quantify evaluations of supplier relations and link these evaluations to a risk map. The idea was to provide companies with a tool to easily identify and visualize potential risks in their supplier landscape and thereby allow the companies to direct their scarce resources towards the largest risks. We named the model the “QIER-model“ as it quantifies and prioritizes the importance of the evaluations from the two sides of the partnership. Ultimately it links these prioritized evaluations to potential risks on a risk map. We derived the model using elements from theories, models and literature that we had been exposed to during our education at CBS as well as from literature found in our literature review. From the literature we identified primary and secondary factors that the questions in the model relate to. These factors are to be considered as a gross list for companies to use when creating their own questions for their suppliers. The primary factors are used to evaluate the importance of the overarching factors in the relationship while the secondary factors are the questions that the companies actually want to know more about. The evaluations are made on Likert-scales. The literature also exposed us to gap analysis, conjoint analysis, cluster analysis as well as the risk map that we ultimately ended up using elements from in our model. The evaluations were compared and prioritized in a gap analysis and from the conjoint analysis we used the tool of the “ideal” relationship based on the supplier’s evaluations. The cluster analysis is not an integrated part of the QIER-model but we recommend using it to identify clusters among the suppliers so the existence of these will not distort the analysis. The existence of clusters should induce the company to make the analysis per cluster. On the risk map the probability for the suppliers reacting to a gap was linked to the importance the suppliers had put on the questions relating to the primary factors. This probability could be affected by power imbalances in the relationship between the company and the supplier. Therefore we recommended using a power analysis. This power analysis could be made using Cox’ portfolio model. The effect on the risk map was linked to the gaps of the questions relating to the secondary factors. The steps in the QIER-model lead to the visualization of the potential risks in the risk map. With this the company can easily see where to direct their limited resources first to reduce the potential risks. Andreas Thye & Christian Schilling Nybo Rasmussen Side 5 af 106 To finalize the model we made a limited test of the QIER-model to validate if it functioned as we expected it to. The test was not scientific but it was still possible for us to validate whether or not the model worked as expected. Further tests should be made in the future to validate the model and increase the reliability.
|Educations||Graduate Diploma in Supply Chain Management, (Diploma Programme) Final Thesis|
|Number of pages||106|