1,722,268 research outputs found
Negative default dependence in supplier networks
No full textThe financial defaults of suppliers in a supplier network are significant risks and causes of uncertainty for buying firms. Hitherto, it has been largely neglected that default probabilities of suppliers in supplier networks are not independent of each other. We aim to overcome this shortcoming by studying negative supplier default dependencies: situations where a surviving supplier may benefit from the default of another supplier, resulting in a lower default probability. We use empirical data from the automotive supplier industry and copula functions, a method of representing joint distribution functions with particular marginals, to capture the default dependency between automotive suppliers and simulate various scenarios with negative default dependency. We also conduct a comparative static analysis illustrating the significant impact of negative default dependence. Our findings should spur managers to analyze their supplier networks with respect to default dependencies, and to take this phenomenon into consideration when making sourcing decisions
Supplier default dependencies: Empirical evidence from the automotive industry
No full textCommon ways to mitigate the detrimental consequences of supplier bankruptcies are to install redundancy and to pursue a multiple-sourcing strategy. This is based on the assumption that the adverse event of one supplier going out of business is largely independent from the default of other suppliers. However, this implicit assumption does not hold in all cases. This study – based on empirical data from automotive suppliers – reveals that default dependencies among suppliers do often exist and can have significant consequences. We use copula functions, a method of representing joint distribution functions with particular marginals, to capture the default dependence between automotive suppliers and to simulate various default dependence scenarios. We also conduct a comparative static analysis illustrating the significant impact of default correlation in a supplier portfolio. Our findings should spur managers to analyze their supplier portfolios with respect to default dependencies, and to take this phenomenon into consideration when making sourcing decisions
Decoupling of global supply chains: Drivers, constraints, and alternatives
No full textDespite the growing discussions on supply chain decoupling, there is relatively little research about this strategy beyond reshoring discussions. Based on qualitative research, we investigate the strength of decoupling tendencies, their drivers, and constraints. The study indicates that major drivers of decoupling are an increased flexibility and shorter lead time, while the availability of suppliers is a major constraint. Further, although the drivers and constraints are similar, the results suggest that the two concepts–supply chain decoupling and reshoring–differ, as companies pursue those approaches with varying degrees of strength. In this regard, the findings also reveal a gap of political discussions and business practice. In conclusion, our exploratory study brings several important implications to purchasing and supply managers on decoupling considerations
The state of artificial intelligence: Procurement versus sales and marketing
No full textProcurement, sales and marketing are the main boundary spanning functions of an organization each with a specific focus and partly different views and objectives. They are often considered as two sides of a coin that struggle with one another for relative competitive advantage. The digitalization of procurement functions and the introduction of enterprise resource systems have led to a seeming data abundance. However, the results especially in the area of artificial intelligence are not yet satisfac-tory in practical application. In addition, few academic works are steered towards procurement. In fact, some expect that procurement is less likely to benefit from the application of artificial intelligence methods emphasizing the potential benefits in functions such as finance, production, marketing and sales. Why is that? What can we do about it? Or is it even a bad thing after all? This manuscript is structured in three sections based upon the “Memorandum of Design Orientated Business Informatics” with analysis, draft, evaluation and diffusion (Österle et al., 2010). Five propositions have been derived by contrasting and comparing the needed decisions and available data of procurement with marketing and sales. Based upon them, recommendations are developed for management and further research
De Bonis Angelis Dei Filiis Commentatio. Programma S. Archangeli Michaelis Festo A. R. S. MDCCLXIV. In Academia Ivlia Carolina P. P / [Verf.: Christoph August Bode]
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