Tesla Supplier Performance Gap

This thesis investigates the performance gaps in Tesla's supply chain, focusing on cost, quality, and capacity issues. It analyzes factors contributing to these gaps, explores alternative solutions for firms facing similar challenges, and recommends strategies for improving supplier efficiency and resolving performance gaps. The research utilizes a qualitative approach, drawing on secondary data from various sources, including case studies and industry reports.

Thesis

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of study..............................................................................................................2
1.2 Problem statement.................................................................................................................4
1.3 Rationale of research.............................................................................................................5
1.4 Significance of research.........................................................................................................6
1.5 Research scope.......................................................................................................................6
1.6 Project Structure....................................................................................................................6
CHAPTER 2 – LITERATURE REVIEW.......................................................................................8
Theme 1: Role of supply chain management in managing performance gaps............................8
Theme 2: Factors leading to performance gaps in Tesla...........................................................10
Theme 3: Alternatives taken by firm in performance gap.........................................................13
Theme 4: Cost, quality and capacity related to supplier and their efficiency............................15
Theme 5 Strategies to resolve performance gap........................................................................16
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................19
Introduction................................................................................................................................19
Research philosophy..................................................................................................................19
Research type.............................................................................................................................20
Research approach.....................................................................................................................21
Research design.........................................................................................................................22
Data Sampling...........................................................................................................................22
Data collection...........................................................................................................................22
Data Analysis.............................................................................................................................23
Ethical consideration.................................................................................................................23
Reliability and validity..............................................................................................................24
Chapter 4 Data Analysis................................................................................................................25
4.1Introduction...........................................................................................................................25
4.2 Role of SCM in performance gap........................................................................................25
4.3 Factors leading to performance gap.....................................................................................27
4.4 Alternative taken by firm.....................................................................................................29
4.5 Strategies to resolve performance gap.................................................................................31

Chapter 5 Discussion and Conclusion...........................................................................................35
Discussion..................................................................................................................................35
Conclusion.................................................................................................................................38
REFERENCES..............................................................................................................................41

TITLE- How to help supplier improve or resolve the performance gap in term of capacity,
quality and cost – A maturity level and efficiency evaluation.
CHAPTER 1: INTRODUCTION
In recent time, technology is playing a crucial role in growth and development of
organisation. It has provided a platform to expand into different markets and increase their
efficiency. Almost in every business functions technology is implemented which has enhanced
speed of operations as well as evaluating performance. Supply chain management is a function
which control and manage inflow and outflow of goods and services. It is divided into several
other functions such as logistics, stock management, supplier management, etc. So, to effectively
manage logistics technological tools and equipment’s are used (Cannavacciuolo & et.al., 2015) .
Through this, companies are able to evaluate performance of suppliers. Thus, deviations are
determined and measures are taken to resolve it. Consequently, firms have made certain changes
in selecting supplier. Moreover, they are able to analyse cost and capacity of suppliers and then
taking decisions.
For a company supplier play a significant role in operations and purchase. It is because
any variation in quality of raw material will highly impact on operations. Similarly, efficiency of
organisation depends on supplier products. The role of supplier is to meet requirements of
company, supply raw materials in specified time, etc. A company production department is
entirely dependent on logistics of materials. The inflow of materials at right time helps in
producing goods in right time to meet market demand. Moreover, enterprise is highly dependent
on supplier to maintain efficiency within operations. It is very important for business to select
appropriate supplier so that quality of raw materials as well as finished goods is preserved. Every
company have a proper and systematic method through which they select supplier. The methods
can be changed to safeguard quality of raw material.
It is essential for company to evaluate performance of supplier so that cost can be
reduced and return on investment of finished good is increased. Furthermore, it gives a detailed
report about overall performance of supplier. In addition to it, enterprise identify why there is
gap in performance and the reasons behind it. This is useful in eliminating those gaps so that
capacity as well as quality. In every there are number of suppliers through which raw materials
are purchased (de Sousa Jabbour & et.al., (2015). It is ensured by company that each supplier is
capable enough to meet requirements of enterprise in critical times. This is ensured by evaluating
1

performance of supplier on basis of certain elements. They are cost, quality and capability. But
there occurs a situation where supplier is not able to meet high demand of raw materials. So,
company have to switch to another supplier to fulfil their needs. There occurs a situation which
leads to performance gap. It might occur due to change in variables such as cost or quality.
In present time a lot of issues have occurred over performance of suppliers in auto mobile
sector. There has been rise in performance gap related to cost, quality and capacity. The suppliers
are not able to meet specific needs of companies. It has affected their efficiency to a great extent.
Thus, it has enforced business to focus on supplier selection and reducing performance gap.
There are many reasons due to which gap has increased. For instance, ineffective selection of
supplier, rise in cost, capacity assessment, etc.
Business is having a global network of suppliers interconnected with each other. For each
one their capacity, cost and quality are different. The organisations are having their specified
process and methods of managing overall activities of suppler (Liu, Wang & Huang, (2017). In
similar way, the impact on efficiency also varies on supplier as well as business. There are
various methods to evaluate performance gap and resolve it. For example, Recently Tesla faced a
situation in which supplier was not able to supply components on time. Thus, they broke contract
with that supplier. It affected entire operations of Tesla and resulted in performance gap. In order
to resolve it, there are three options which enterprise can follow. First is switching to new
supplier, insourcing those components and last helping supplier to resolve performance gap.
Similar case happened with Nintendo where company supplier ran out of supply in March 2017.
Due to this company sales and profits were highly affected.
1.1 Background of study
In today's world, Supply chain management is basically the flow of goods and services
that perform different functions such as storage of raw materials, inventory process and finished
the good from its origin point. It also designing, planning, control, monitoring and execution of
sourcing activities through proper objective. In this way, it helps for increasing competitive
advantages in the global marketplace. The quality cost and capacity of organization is based on
the supplier to handle each and every task in proper manner (Zhu and et.al., 2018). The
organisation is connected to the supplier and create strong bond that help for maintain the cost
and quality of product in proper manner. Supplier is used the supply chain management that
integrated with the business process, from the raw materials supplier through the end point. In
2

this way, the supplier is captured the opportunity for reducing the gap between the performance
and their capacity. Supply chain management system is a process that always maintain the
quality and cost according to the market condition or situation (Whipple, Wiedmer & Boyer,
2015). A supplier is responsible for delivering high quality of products within specified time
period. It enables in proper flow of materials and information which is required in managing
operations. There is a great relationship between suppliers and operations of business. Any
interruption in flow of goods impact on operational efficiency.
In today’s competitive business environment many companies are outsourcing their
activities. this has eased their operation process and made it efficient enough for them to produce
variety of products in short time. The outsourcing industry is at boom. It has made it easy for
organisation to assemble goods at one place and deliver it in market.
Enterprises have begun to outsource its manufacturing activities because of the number of
advantages it has. Outsourcing activities are different in various organisations, it has variant of
forms based on the location from where it is hiring the services. Onshoring, nearshoring and
offshoring are three basic forms of outsourcing (Cao and et.al., 2010). Enterprises with high
availability of resources may afford offshoring activity irrespective of funds and investments.
Similarly, enterprises with high rate of supply and demand may opt for nearshoring outsourcing
to overcome time constraints.
Enterprises may undergo from different outsourcing models to ensure better results and
effectiveness. High outsourcing activities are carried out by enterprises these days because of
increased workload and demands among the customers. There are many advantages and
disadvantages of outsourcing which are described below :-
ADVANTAGES
 Save and reduce cost of the company: By outsourcing certain manufacturing activities,
the additional cost of company that incurred in installation, maintenance, logistics and
procurement of machinery get reduced instantly.
 Increase focus of company: Outsourcing deliver strategic focus to specific plan and
procedure of the company (Handfield & et.al., 2015). Besides of focusing on production
and related activities of transportation, dealing with suppliers and retailers, the company
can easily drive its focus towards own strength and competencies.
3

 Access of company's resources to other departments: The remaining resources that
could be utilized before outsourcing can be used in the development of other functional
areas of the company.
DISADVANTAGES
 Increase dependency: The enterprises that are highly involved in outsourcing its
activities becomes extremely dependent on other manufacturers and suppliers. It reduces
the effectiveness of company in terms of its performance and productivity.
 Risks related to strategic decisions: The enterprises have a considerable risk of losing
its key decisive policy of success during high involvement with outsourcing agencies.
 Risk of inefficient results: The enterprises are not aware of inefficiencies of outsourcing
agencies that drive undesired results to the company and affect the market image of
company and quality of products.
Based on the derived disadvantages of outsourcing, a threat of performance gap has
occurred in logistics. Ineffective outsourcing strategy may result into performance gap among
suppliers. The gap arises when the suppliers are not providing the fixed quantity and amount of
raw materials that are specified by the company (Gligor, Esmark & Holcomb, 2015).
Furthermore, the standards of parent company and hired supplier must be aligned with each
other. Performance gap also arises when the cost incurred by supplier is high and the quality
delivered by it is comparatively low. Another concerning factor that affects the performance is
real time delivery by supplier. If enterprises do not receive goods on time, it hampers the further
ongoing processes and operational efficiency.
1.2 Problem statement
From the past years, suppliers are playing crucial role in contributing in maintaining
efficiency of business. But there is increase in performance gap among suppliers. It might be due
to many reason or factors that is impacting performance of suppliers. This is impacting on
operation of company. Along with it, many firms prefer outsourcing manufacturing activities so
that cost per unit remains low. Also, it is useful in meeting market demand and generating high
revenue. Another issue which has arose is auto mobile companies are not able to evaluate
supplier performance. The efforts taken by them to improve performance has not generated
effective outcomes. Hence, it has hampered on operational efficiency. Besides this, several
strategies are been followed in evaluating supplier performance.
4

Supply chain is playing a significant role in improving efficiency of auto mobile
companies. The organization have laid down a proper network through which distribution of
goods is been done. But since advancement in technology firms are facing many problems
related to maintaining efficiency in supply chain. It has resulted in rise in performance gaps
between suppliers and companies. Due to this more cost is incurred on purchase of raw
materials. Also, quality is been degraded from supplier’s end (Srai and Lorentz, 2018).
Therefore, this thesis will focus on why suppliers are not able to deliver car component on time.
also, why there is rise in cost of battery and what impact it has on overall budget of Tesla.
Furthermore, what impact will it have on cost, quality, etc. in production process when AI will
be implemented. Thus, it will provide roadmap to companies engaged in auto mobile sector to
minimize gap in terms of cost, quality and capacity. They will develop and implement strategies
by making changes in business process.
Aim
To evaluate measures to resolve performance gap with regard to cost, quality and
capacity of suppliers and enhance their efficiency. A case study on Tesla
Objective
 To access role of suppliers in managing performance gaps
 To analyze factors leading to performance gaps within suppliers in Tesla
 To evaluate how cost, quality and capacity is related to supplier and their efficiency
 To recommend what measures or actions can be taken to resolve performance gap
Research question
 What strategies can be followed to select appropriate supplier?
 What is the impact of performance gap on efficiency of business?
 How performance gaps can be reduced by taking effective measures?
1.3 Rationale of research
In present time supply chain and logistics plays a vital role in growth and development of
company in auto mobile sector. They help in proper delivery of finished goods in different
markets in right time. Besides this, it is essential for organization in industry to reduce their
supplying cost and maintain quality of products. When supply chain efficiency is maintained it
helps in smooth flow of buying raw materials and managing stock. The major part of company
5

cost is incurred on distribution of products from one market to another. However, it has been
difficult for business to maintain supplier performance with regard to their goals and objectives.
1.4 Significance of research
The present thesis is undertaken to examine ways to overcome performance gaps with
suppliers to maintain efficiency in business and its logistics (Lamba and Singh, 2018). In
addition to it, study will describe that what measures should be taken by companies as well as
suppliers to integrate network. Moreover, it is necessary to minimize gap to enhance quality of
raw material and cost effectiveness in services. However, study will help in identifying factors
behind performance gap and improving it. Alongside this, it will show how maturity level of
supplier can be upheld to evaluate efficiency. At last it will be easy for companies to implement
capacity assessment and method for selecting supplier.
Besides this, there are many factors which has occurred while evaluating performance of
suppliers. The companies are not able to understand capacity of suppliers. Thus, it has affected
on their operational efficiency. Apart from it, change in practices of operation in suppliers have
impacted on quality and cost as well. Due to this, capacity has reduced and organization are not
able to meet their requirements.
1.5 Research scope
By conducting thesis on topic, it will assist organization to improve supplier efficiency
and reducing performance gap between them. Moreover, it will support application of some
methods which will be useful in enhancing performance of individual supplier with business.
Through this, it will be easy to determine loopholes and improve them. Apart from it, companies
will get an insight that how capacity and quality of suppliers can be sustained at their maturity
level. Additionally, they will be able to determine factor responsible for performance gap and
making changes in supplier operations to reduce its impact.
1.6 Project Structure
Chapter 1 Introduction – This is the first chapter which will give an overview of overall
research topic. Here, researcher will describe about background, objectives, rationale,
significance, etc. of study. In addition, the chapter is discussion of reason and importance of
choosing particular topic like in this scholar derived that motive behind choosing thesis topic.
Chapter 2 Literature review- It is the second chapter in which researcher will analyze
secondary findings from different research articles, journals, etc. Here, the topic is discussed in
6

depth by analyzing articles and journals regarding what other authors have studied in past. The
secondary data is collected and analyzed which makes it easy for user to know what study is all
about. In this, it is important for the investigator to make use of appropriate keywords which
helps in relevant and viable research. Further, for making systematic literature review the scholar
form themes which are based on research objectives and question.
Chapter 3 Research methodology – This chapter will describe about different types of research
methods which will be used or applied by the researcher in project (Ross, 2015). It will give an
overview about how overall research will be conducted by using various methods. In addition, it
will include data collecting and analysis tools which are used by researcher for exploring
research topic, aim and objectives.
Chapter 4 Data analysis – This chapter will show how primary data is collected and interpreted.
It gives a brief analysis of results obtained from data. It will include graphs, tables, etc. along
with interpretation.
Chapter 5 Discussion and analysis- In this, the results and analysis are discussed which will
show findings of overall research. The researcher will give an in-depth analysis of data and
information analyzed by collecting primary data. This will make it easy for the user to evaluate
overall findings of project (de Sousa Jabbour & et.al., 2015). Thus, it can be said that this
chapter helps the researcher in deriving purpose of conducting research and aid in making
relevant decisions.
Chapter 6 Conclusion – It is the last chapter in which information is summarized. Here,
researcher shows what is concluded after analyzing data and information the project. This
chapter gives an insight that about findings of data and information. Thus, it is the outline of
dissertation on the basis of which researcher is able to make recommendation for further
improvement with regard to research aim, objectives and questions.
7

CHAPTER 2 – LITERATURE REVIEW
SCM is related to inflow and outflow of finished goods or raw materials from company
to market. For any organization it is necessary to establish a network of their distribution channel
which enables them to deliver products to end customer in different markets. There are many
ways through which SCM operates. It depends on size and nature of organization. Furthermore,
it is necessary to increase efficiency of SCM so that operations are performed with systematic
way with optimum utilization of resources. In recent time there are many issues occurred due to
which SCM performance is been impacted.
Theme 1: Role of supply chain management in managing performance gaps
A supply chain is an integral part of an organization which helps in maintaining balance
between operations and purchasing. It is interrelated to various departments within enterprise.
The overall inflow goods are been managed and controlled by supply chain department. It is a
key that connect company with suppliers in the market. They transfer raw materials from point of
origin to point of manufacture. It plays a significant role in maintaining efficiency of operations
and production of goods. According to Ross, 2015 for many organizations supply chain have
supported in growth and development. This can be analyzed by way that they supply materials
which are required in producing various types of products. Besides this, companies have
determined the capacity of supplier and then selecting them. There are several functions of
supplier which included storing, purchasing, resource management, information workflow, etc.
from one place to another (Functions of supply chain management. 2018).
Supplier provide a base through which business performance is managed. Therefore, it is
necessary for organization to determine performance gap so that efficiency is maintained. The
deviation must be solved through developing an effective network of supplier. This is because it
helps in ensuring smooth inflow of raw materials from each supplier. It also helps organization to
maintain their momentum in industry. This benefit them in gaining competitive advantage in
market. The suppliers are expanded at global level which helps company to buy goods from
different places. There are many other things which is taken into consideration such as capacity,
cost, etc. by company. The major role supplier play is to leverage cost of purchasing raw
materials so that return on investment is increased. Suppliers usually deal with firms on cost
basis. This is because they want to gain more profits. but on contrary, organization deals with
supplier by focusing on quality of raw materials then cost is considered as second factor. It is
8

necessary for company to choose appropriate suppliers so that high quality goods are
manufactured.
Relationship of suppliers and business performance
A supplier is closely linked with business as it deals in various types of goods. There is
direct relationship between them. Suppliers are the starting phase of production process. They
supply raw materials which are processed into finished goods. So, firms have to maintain strong
relation with them to ensure that operations are not hampered.
According to Yawar & Seuring, 2017 the quality of business processes is greatly
influenced by the suppliers of organisation. Thus, for effective accomplishment of business goals
it is important to understand their relation. The development of supplier and sub suppliers is
completely dependent upon the methods and needs of business process. For instance, the
business process which requires high level of flexibility can be accomplished effectively in terms
of cost if supplier is also flexible in its functioning. The proper connectivity between both of
these assures that operations are performed in assigned time limits and with proper resource
utilisation.
In view of Beske-Janssen, Johnson & Schaltegger, 2015, for assuring the quality and
timely accomplishment of objectives it is essential that there must be suitable coordination and
balance between suppliers and business processes. However, the coordination between suppliers
and processes is developed by using necessary organisational system and tools. For example, if
organisation does not have any system for acknowledging the purchase orders then it is possible
that there may occur any miscommunication and accuracy of these processes may get affected.
The lack of understanding of the business process among suppliers can also influence the
quality of resources supplied which in turn affects the overall performance of the business. For
achieving the benchmarks of performance, it is vital that suppliers must have detailed knowledge
and understanding of the business process. A supplier is responsible for delivering high quality
of products within specified time period. It enables in proper flow of materials and information
which is required in managing operations. There is a great relationship between suppliers and
operations of business. Any interruption in flow of goods impact on operational efficiency. For
instance, if there is high demand of raw materials and they are not supplied in right time it will
directly impact on goals of business.
9

Stevens & Johnson, 2016, said that demand of order increases company can put more
pressure on supplier to fulfil it through productive supply chain. this can be done by using
advance technology and implementing maturity model. Therefore, having a flexible network of
supply chain support in timely delivery. In addition to it, capacity assessment describe how
supplier will be able to handle future situation. In this way cost is determined, quality standards
are formed and process is established. Hence, business performance is maintained and goods are
delivered timely to end consumer.
According to Prajogo, Oke & Olhager, 2016, performance gap within suppliers must be
evaluated to select appropriate suppliers and to manage effectiveness in supply chain network.
Apart from timely delivery, it is essential for enterprise to ensure that cost remains stable within
all supplier. As elucidated by Handfield & et.al., 2015, performance gap refers to difference
between current and future situation. Through this, it becomes easy for business to identify what
goals they have attained and what more efforts are required in obtaining remaining one. Then,
accordingly strategies are developed to remove deviations. Generally, there are three factors on
which a supplier is chosen and their performance is analyzed. They are cost, capacity and
quality. It is useful in making changes in distribution of products. However, it helps supplier to
maintain their efficiency.
According to Kaliani Sundram & et.al., 2016, maturity refers to process of supply chain
which is divided into stages. Having a high maturity provides advantage to business in various
ways such as better controlling of results, proper forecasting of results, maintaining efficiency,
etc. Maturity is not related to logistics but to KPI’s in supply chain. At every level there are N
number of benefits. In first company functional process is identified within internal area. This
enables in making drastic reduction in overall supply chain. This is done by rationalizing product
mix with volume of purchase. Now, emphasis in on increasing volume of physical distribution of
goods. Here, demand management is considered as factor in planning and prioritizing supplier.
At last a business network is redesigned. Then suppliers are invited in planning, organizing of
activities. by following entire process relationship are built with supplier globally.
Theme 2: Factors leading to performance gaps in Tesla
A performance gap may occur due either at suppliers or company end in auto mobile
sector. Any small deviation is not solved leads to rise in gap in supplier performance. In present
times it has been found that the firms are not able to maintain efficiency of suppliers and
10

maturity level, due to this performance gaps have raised among suppliers. The core reasons
behind increasing performance gaps are, cost, quality or capacity. As said by Tsui, Tzeng &
Wen, 2015, in recent time suppliers’ integration is becoming a crucial factor for business
excellence. The performance gap identifies expectation between suppliers and how well
functions in supply chain are been integrated. A supplier performance is entirely dependent on its
capacity and quality. As elucidated by Liou & et.al., 2016, performance gap and its impact on
business have brought some major changes in areas of business. This has led to development of
some theories as well as tangible values in practice. In operation management the concept of
expectation gap is similar to perception gap. Any change in one or another stage of supply chain,
it may impact either positive or negative way. Therefore, the impact must be analyzed by doing
risk assessment. Here, criteria are applied to determine what are the factors and to how much
extent it is impacting efficiency. In a study conducted by Huq, Chowdhury & Klassen, 2016,
performance gap is interrelated to business efficiency. This can be stated by fact that if
organization is able to reduce gap then it helps in improving overall operational efficiency. But
there are some factors which impact in negative way on productivity. The factors arise due to
inappropriate handling of situation. The factors are as follows: -
Market situation – This the second factor which led to rise in performance gap. Any
change in market condition enforces business to switch supplier. In this situation either they
provide more return on investment to supplier or switch supplier. Sometimes, the product
demand is high one market and low in another. So, this definitely result in rise in gap between
suppliers which hampers performance.
Capacity of supplier- It refers to the capacity of supplier on basis of which goods are
purchased by company. If there occurs any change in capacity of supplier, the materials will not
be delivered in right time. Moreover, firm capacity changes with market situation. When there is
improper supply of goods as compared to requirement performance gap occurs. A firm is entirely
dependent on supplier to fulfil market demand. Hence, huge efforts are been made to increase
capacity so in time of high demand operations are not affected.
Connectivity – It means the connection between supplier and company. This
performance gap occurs when there is ineffective communication between them. It might be due
to improper exchange of data and information or ineffective relation between enterprise and firm.
11

Due to this requirement are not properly specified by firm and lack of communication results in
performance gap.
Price of related goods– Another factor which is the reason for performance gap is
fluctuation in price of related goods in market (Jajja & et.al., 2016). It forces supplier to rise their
cost. this create deviation between enterprise and supplier. The firm may not be able to pay that
much to supplier. In this case operation will be hampered.
Another example can be taken of performance gap of Nintendo. Here, they took large
number of orders from customers before launching their product but they were not able to meet
market demand. This was due to insufficient supply of goods. Thus, it resulted in performance
gap. The reasons that caused this situation was Nintendo was not having a proper inventory plan.
so, they were not able to identify that how much units will each supplier deliver. Another reason
was company struggled to determine their supplier capacity and those who delivered goods were
having limited capacity. So, parts supplied was not in proper quantity and firm needs was not
met. Besides this, Nintendo did not build effective and strong relationship with suppliers. So,
these all impacted on supplier performance. There was a great consequence of performance gap
on both. Due to this Nintendo was not able to meet market demand. they lost opportunity to gain
competitive advantage within market. On other hand supplier was affected as well. They did not
get proper price of goods delivered. It led to decrease in their profits. Furthermore, it directly
impacted on their relation with organization. Many existing suppliers broke their contract with
them.
The major impact of performance gap is on efficiency of business. It results to decline in
productivity as well as profits. Due to this, firm is not able to maintain standards of quality. This
might lead to improper movement of goods within organization and in market. So, if finished
products are not delivered in time customer satisfaction will decrease. The value provided by raw
materials in producing goods will not be same (Kumar & Routroy, 2016). Henceforth, the
company may not be able to maintain their quality. Similarly, company may lose interest to deal
with supplier. Another area on which negative impact will be is on capacity performance. Delay
in supply of material will rise costs which will impact cost effectiveness of business. In
accordance with this, the enterprise will have to pay more to supplier to manage stock and
maintain its quality. Besides this, they will have to conduct capacity assessment to ensure smooth
flow of operations. So, rise in cost forces business to determine high price of products. So, either
12

they have to charge it from customers or return on investment in reduced. There are some
measures which can be undertaken for improving performance gap. These are as follows:-
 Supplier capacity management- it is a method through which supplier capacity is
increased. In this company develop a plan in which performance metrics are included.
This enables in evaluating performance of supplier and improving it. basically, there are
three basic elements on which measure is taken.
 Sustainability capacity improvement – In this improvement is done through
sustainability. Businesses invest lot of amount on increasing capacity of supplier but in
case of high demand supplier is not able to fulfil it in given time. So, an approach is used
which enable supplier to maintain efficiency with capacity. This benefit to a great extent
for company as well as supplier.
Theme 3: Alternatives taken by firm in performance gap
It is very important to solve performance gap as it hampers business efficiency in long
run. Whenever gap occurs company quickly takes decision to switch to another supplier. This is
because they do not want to bear loss due to it. A performance gap can occur due to various
reasons. It directly effects on efficiency of firm and supplier performance. In this state an
effective decision has to be taken to resolve that gap. As elucidated by Lamba and Singh, 2018,
it is necessary to resolve performance gap. If not solved it will continue in decrease in profits of
enterprise. In the opinion of Parida and et.al., 2015, in order to enhance efficiency of business,
performance gap must be reduced. It will be beneficial in long term growth and development.
For this it is necessary to develop several strategies which can be implemented to resolve
performance gap. There are basically three alternatives which can be followed by companies in
case of performance gap which is described below :-
Switch to another supplier- this is the first alternative which is generally followed by
companies whenever performance gap occurs. It is method in which company might take
decision to switch to another supplier if their needs are not fulfilled. For a firm it is very difficult
to switch supplier within a short period of time. This is because it requires a depth analysis and
information about suppliers who will be fit for company. Furthermore, in order to select
appropriate supplier a systematic process is followed. This is done by taking into consideration
the performance gap occurred. However, there are pros and cons of choosing this alternative. So,
by evaluating those effective decision is taken by organisation.
13

Insource the production of these materials – It is second alternative which can be preferred by
organisation. In this they may decide to produce goods which are been outsourced. It is best way
to resolve performance gap. The manufacturing of goods can be done within firm or any other
place. So, it requires a proper plan and strategy to implement this decision. In this company can
face many challenges which will put burden on their operations. Here, insourcing products can
be beneficial for short term but due to this cost per unit might increase resulting in low ROI.
Moreover, business have to ensure that quality is maintained.
Help the supplier to resolve their performance gaps- this is last alternative where company
may decide to resolve performance gap which is occurred. It is done by taking some measures or
developing strategies. In order to resolve gap, an analysis is been done to identify factors which
and then proceeding further. Resolving gap is beneficial for both supplier and company as it
helps in removing deviations and ensuring smooth inflow of raw materials.
As said by Sammon and et.al., 2015, alternatives are chosen by companies on basis of
their requirement. Also, it depends on current situation which company is facing. For them the
best alternative available helping supplier to resolve performance gap. This is because it enables
in maintaining quality, cost and capacity of supplier. Now in terms of cost, supplier can be
trusted. If there occur any gap in cost it can be resolved by mutual decision. It favors both
business and supplier. Through this, per unit cost remains stable and there is no impact on
profits. In terms of quality both can set several standards or make changes in it through which
quality of raw materials can be evaluated. It will ensure that quality is maintained at both ends.
This alternative is also best in capacity terms. Here, enterprise can analyze gap in capacity and
then take measure to resolve it. Moreover, it will benefit business as they know supplier’s
capacity and how they deal with it in time of high demand of raw materials.
On the other hand, Srai and Lorentz, 2018, said that when buyer choose to switch
supplier it may not be useful for them. This is because another supplier cost may be higher. It
will lead to decrease in gross profit of finished goods. Another con of switching is the quality of
raw materials may not be up to that extent. Therefore, it will impact on overall quality of finished
goods. It will also affect on overall operations of enterprise. While selecting supplier a lot of time
and cost is incurred. Alongside it, performance gap may occur with that supplier as well. So, it
will also impact on their operations. Therefore, all these factors restrict organization to switch
supplier. According to Veluri and et.al., 2018, insourcing is also not a good alternative to choose.
14

Here, company have to design plan that how they will produce, where, etc. the major barrier in
this is rise in cost and investment required. It forces business to set up another department where
production will be done. In addition to it, while insourcing quality may not be maintained.
Hence, it will degrade the final product quality. There are many other factors such as increase in
transport cost, more number of employees required, etc. which restricts firm to opt for it. So, on
basis of all these challenges and factors third alternative is best for buyer to choose.
Theme 4: Cost, quality and capacity related to supplier and their efficiency
A company highly emphasis on cost and quality while selecting a supplier. It is because
the entire finished goods features are dependent on raw material quality. So, an analysis is done
in which enterprise evaluate each supplier cost as well as quality and compare it with their
requirements. At last the capacity is determined to ensure proper quantity of units delivered in
specified time. This all assist in straightforward inflow of goods in business operations.
Moreover, when capacity of supplier in increased it directly impact on quality. It can be
degraded when supplier have to supply more goods in given time. So, some changes are made in
practices of suppliers. The changes are applied to preserve efficiency. this also benefit in keeping
standards of quality. Apart from it, when capacity improves it automatically leads to optimum
utilization of cost. In auto mobile sector quality is fundamental premise of producing high
quality products. Alongside it, cost is also an important factor considered. On basis of cost and
quality finished product cost is determined. However, many auto mobile organizations are highly
dependent on supplier products quality. They do not check it in their premises. According to
Jónasdóttir and et.al., 2018, when supply is at high rate more, it enables business to
manufacture more. In enterprise at each stage different components are assembled. So, if there
occurs any performance gap the further operations are affected.
It is said by Zhu and et.al., 2018 there exists a strong relationship between cost and
capacity of supplier. This is base on which selection of supplier is done by company. This
enables firm to determine the actual performance of supplier with desired outcomes. Moreover,
cost is based on quality of raw materials. This is because if quality of goods will be high then
supplier will charge high cost for it. In similar way there when supplier capacity is more, in case
of high demand operation will not be impacted. It will add up to enhancing efficiency of
business. In situation of high demand, it is crucial for enterprise to ensure cost remain low and
quality is maintained. Any deviation in quality will impact cost and vice versa.
15

As elucidated by Kumar & Routroy, 2016, operational efficiency is dependent on inflow
of goods from supplier. Also, capability of supplier reflects on how they are able to met needs of
firm. besides this, it enables in setting goals and making improvement. It is done through
reducing performance gap. In similar way resolving gap keep track of quality and capacity. If
supplier efficiency is improved it automatically increases business efficiency as well.
Theme 5 Strategies to resolve performance gap
According to Woo & et.al., 2016, performance gap must be resolved so that business
efficiency is maintained. Moreover, it helps in providing goods of high quality in right time to
meet market demands. The strategies applied by firms depend on type of supplier and level of
performance gap. If gap is not resolved it restricts business to reach optimum level of operational
efficiency. Therefore, firm tries to fix problem as soon as possible. In addition to it, supplier
profits are affected as well. They are not properly able to deliver goods in given time. there are
different strategies and approaches which can be implemented to resolve performance gap. They
are as follows :-
Buyer supplier model – A buyer supplier model consists of several elements which is based on
transactions. The core element of business network include trust, resource sharing, etc. this helps
in reducing risk of performance gap and shortages. In addition, it leads to better flow of
information between supplier and firm. through this, positive relationship is created among them.
however, the model provides a framework on basis of which supplier performs. It supports
business in evaluating supplier performance. Moreover, by implementing model supplier can an
idea that how they have to work. Buyer can create a network through which relationship will be
built. In this way, performance gap is reduced.
16

Figure 1 Buyer supplier relationship
(Source: Claro, 2004)
Supplier development- This is an approach in which investigate relationship between supplier.
In this several factors are considered that include supplier efforts, commitment, etc. with firm
buying performance. Then, each element is analyzed and strong relation is maintained with
supplier (Daniel and et.al., 1998). Here, a firm commit their relationship with context of goods
and values, structural capital, etc. This helps in supplier development. it is useful in improving
buying performance of organization. Apart from it, redesigning of structural capital enables in
making changes in buying process.
Supply chain collaboration – This approach is based on certain components which helps in
collaboration within supply chain (Cao and et.al., 2010). It helps in leveraging resources,
lowering transaction cost, etc. The components are interrelated with one another. There are seven
components through which collaboration is integrated into supply chain. They are as follows :-
 Information sharing- Here, the network is improved so that data and information is
shared in effective way. The overall network is modified to make the access easy.
Through this, information shared is fast and quick.
 Goal congruence – It means to compare company goals with supplier one and then
making changes in it. Through this, it becomes easy to collaborate with suppliers.
 Collaborative environment – In this component a collaborative environment is created.
It enables in working together by sharing information and developing strategy.
17

 Decision synchronization – The component improves decision making between supplier
and firm. this assist in making things easier and giving clarity in decisions taken. The
company communicate with suppliers frequently.
 Resource sharing – In this both supplier and company works together by sharing
resources with each other. This technique helps in dealing with critical situations and
meeting high demands of goods in effective way.
 Incentive alignment – In this business aligns their incentive policy with supplier. The
policy is improved in order to ensure quality of goods is maintained.
 Joint knowledge creation – The organization and supplier share knowledge and
information properly. It helps in updating and collecting data about quantity, type of
material required, etc.
18

CHAPTER 3: RESEARCH METHODOLOGY
Introduction
Research methodology offers specific technique and procedure to gather and analyse
information collected and researched. It is a system which offers critical evaluation of research
concepts in order to outcomes and outline findings. It is used on basis tool like research
philosophy which is further divided into categories. On the other hand, there is research type
which helps the scholar in determining type of research the scholar has conducted on the basis of
research aim and objectives (Yawar & Seuring, 2017). Determination of tools and techniques is
done on the proposal because it helps in developing understanding over entire format of data
collection and analysis. The discussion of different methodological tool is given below and is
based on chosen procedure and tools.
Research philosophy
It is a framework on the basis of which information is collected related to aim and
objectives. Through this, it become easy to evaluate and analyse data for addressing aim and
objective. Philosophy includes technique which deal with nature and scope of research. It defines
way on how to collect information (Research Philosophy, 2018). Different types of research
philosophies are there like realism, interpretivism, positivism, etc.
Realism deals with real theories and models to develop knowledge on topic of study. It is
completely based on nature and qualitative and quantitative subject matter. It is chosen by
researcher in finding out how theories relate with human behaviour. Realism can be considered
as the epistemological approach which describes the relation with scientific enquiry. This
philosophy can be considered as the opposite concept of idealism in which scientific facts are
essential for building the knowledge (Chae, Choi & Hur, 2017). It underpins the data collection
and its analysis in a more realistic way instead of following the ideal concept.
Interpretivism is based on small scale research. The data gathered is from few people and
is interpreted to attain objectives. Usually, it is applied when study is qualitative in nature and
themes are developed. Also, data is evaluated in descriptive manner. The primary focus of
interpretivism is that it emphasis more on observations from people or participants. With this
philosophy the research area is analysed from the perspective of social world instead of mere
imagination or hypothesis. It is assumed that interpretivism is highly suitable for the research
studies related to business and management However it does not apply the generalised concept
19

on every research subject. For analysing the subject area with more clarity and accuracy each
case is considered as unique and interpreted in a diversified manner. It also helps to identify the
specific issues rather than making generalised assumptions.
Positivism is used when scholar wants to define relationship between variables (Ledford
& Gast, 2018). It is based on natural phenomena and study is done in large area. It uses both
types of methods which are qualitative and quantitative. Here, hypothesis is derived to show
significant value between two variables. One of the vital elements of the positivism philosophy is
that it helps to extend the research to a wider scope. In order to facilitate the replication with this
approach structured methodology is employed. Positivism approach verify the hypothesis so that
further theories can be developed and implemented in the research.
In present study researcher has used positivism philosophy. This is because it depicts how
supply chain management models are related to performance gap. Also, scholar is able to relate
supplier performance with business efficiency. The models and theories are used to illustrate
this.
Research type
It is a method of organising overall study in appropriate manner. This outline a way
which makes it easy for scholar to conduct study in systematic way (Gao, Xie & Zhou, 2015).
A research type is basically of two types that is qualitative and quantitative. In both these there
are several other types which is followed by scholar such as empirical, observation, etc.
The qualitative research type is applied to gain theoretical knowledge of topic. this is
done to get a brief literature about study. It gives a clear outline of topic to user. It is easy for
scholar to interpret data and writing academic view by using critical analysis thinking skills.
There are many facts and figures included in this as it is based on different techniques like quasi,
relational, etc. The information is gathered from articles, journals, etc. The qualitative research
provides the detailed insight of the research issue so that better interpretations can be made. This
approach emphasis on attitude, behaviour and perspective of individuals to accomplish the
research objectives. One of the crucial advantages of using this approach is that it helps
researcher to make pre-judgements on the issue. Instead for every assumption a clarification is
present on the basis of response obtained.
On contrary quantitative is used to define relationship between two variables. In this
information is interpreted through graphs and tables (Litosseliti, 2018). It clarifies effective
20

correlation to give understanding about topic. usually, quantitative is used with context to SPSS.
It requires proper technique to interpret data. The key advantage of quantitative approach is that
objective data can easily be used to measure and conclude the result. With the use of this
approach it is also possible to make predictions on the basis of numerical data obtained. Thus,
one of the biggest advantage of this approach is that it is possible to transform the quantitative
observations into major predictions which is beneficial for the research.
The research type that has been used is qualitative in which themes is been generated
with context to aims. By using this, scholar was able to get relevant answer to research questions.
Moreover, scholar got a depth understanding about performance gap and how it is related with
supplier.
Research approach
Here, a plan is developed by scholar. This provide a systematic path which is followed to
carry out activities in proper way. The approach is determined on basis of philosophy and type. It
makes it easy and give a clear way on what has to be done next. Furthermore, this helps in
collecting data and information. Three approaches are there deductive, inductive and abductive.
In deductive facts are analysed in logical way by following top down approach. It uses
numeric information to obtain outcomes. The focus is completely on mean behaviour testing,
assuming hypothesis, etc.
Inductive approach focuses on developing relationship between two or more than two
factors. But it does not use hypothesis through which justification can be made. In this bottom
down approach is followed (Lew, Yang & Harklau, 2018). Usually, it is applied when open
ended questions are included in study and process identified is oriented.
At last abductive is applied when study is conducted based facts and outcomes obtained
are predictive. In this approach objectives are not attained only answer of research questions is
produced.
Here, scholar have used inductive approach. It has benefited them deriving relationship
between business efficiency and performance gap. Furthermore, information was collected to
determine supplier performance in terms of cost, quality and capacity.
21

Research design
A research design includes certain steps which is followed by scholar in investigation of
topic. This helps in gathering of relevant data and generating desired outcomes. There are only
two designs which can be used. They are exploratory and conclusive.
In exploratory data is gathered from broad areas to understand and gain more knowledge
and information. It enables in finding out relevant model and theories. The main aim of applying
this design is to get depth information on topic.
Whereas in conclusive the researcher aims to find conclusion of study. This is done by
gathering data and analysing it to derive conclusion (Sorli & Kaufman, 2018). This design is
further divided into two that are casual and descriptive.
In context to present thesis, exploratory design has been applied. It has assisted scholar in
gaining information on why performance gap occurs in suppliers and how it can be resolved.
Also, how cost and quality results in performance gap and what strategies are followed to
improve supplier efficiency.
Data Sampling
A researcher conducts study on specific people from population. He or she selects and
define target people through sampling method. This is done to filter sample to get relevant data
and information. Through this, it is easy for scholar to conduct study and focus on particular
sample. The purpose of sampling is to chose viable participants to gather valid data. There are
two types of sampling method that is probability and non-probability.
Data collection
In order to get precise and accurate outcomes it is important to collect relevant data. So,
data collection is method of finding out relevant sources through which information is gathered.
The scholar focuses highly on this method because overall outcomes are based on it (Lima-
Junior & Carpinetti, 2016). Primary and secondary are two available methods for data
collection.
In primary method fresh and new data is collected through various tools. For this it uses
different types of tools such as survey, interview, etc. Each tool is different from one another and
then data is collected.
On the other hand, in secondary previous data and information is studied and gathered.
Here, articles, journals, etc. which is been conducted by other authors is interpreted. This makes
22

it easy in getting overview topic and interpreting in properly. Basically, secondary data is based
on themes formed by researcher related to subject.
The present thesis has been done by collecting data from secondary sources. The data is
gathered by analysing previous research papers, articles, etc. this will help in studying in deep
about performance gap in suppliers and strategies to resolve it. Through it, statistics are gathered
to generate relevant results and attaining aims and objectives.
Data Analysis
This is the most important element of research methodology. It refers to process of
interpreting data into useful information. In this it is required that scholar must have deep
understanding of different data analysis tools and how they are used. Generally, tools are applied
on basis of research type (Parida and et.al., 2015). For present study thematic data analysis tool
has been used to interpret data. Through this, it will be easy for researcher to generate findings
and attaining goals and objectives. Furthermore, scholar has studied various case studies and
evaluated information from it. This has been easy in generating appropriate results. Also, by
using this technique it gives clarity in segregating information in various themes and then
interpreting each one.
Ethical consideration
It refers to conducting research in ethical manner. A researcher has to follow certain rules
and regulations to ensure standards are maintained. In present thesis, firstly consent of
participants will be taken. Then, individual has been respected and treated in equal manner.
Moreover, data and information gathered have been secured and protected in database. it is not
shared with third party. Apart from it, respondents were allowed not to answer any question if
they don’t. This enabled in obtaining their views openly.
Ethical considerations play an important role in assuring that the results of study are
validate and data is not fabricated in an unacceptable or inappropriate way. The ethical
considerations in the research enhances the accountability, trust and collaboration among various
researchers. It must be assured that participants must not be harmed during the study. It is the
duty of researcher to ensure the safety and dignity of the participants. The confidentiality has
always been one of the crucial aspects in the research (Kumar & Rahman, 2016). Thus, it must
be assured that the confidentiality of the individuals is maintained. In order to accomplish the
research with transparency it is also required that participants must be well aware of the
23

objectives and scope of the research. It will help them to take better decisions regarding their
consent as well as to provide more reliable information. It will also eliminate the possibility of
any conflicts which may influence the continuity and efficiency of research.
Reliability and validity
It means the extent to which right references have been used by researcher is conducting
research and interpreting data. It is necessary to use right reference and sources so that outcomes
are not affected. It shows validity of study been conducted. The references used will be properly
cited by scholar. Also, researcher has maintained validity of findings by ensuring that all
references used are cited properly.
24

Chapter 4 Data Analysis
4.1Introduction
This chapter will provide brief and depth information about how suppliers can resolve
performance gap by implementing various types of strategies. Here, secondary study has been
conducted and data and information is analysed from various sources. This will be done by
analysing various case studies and finding out what other organisation has done to overcome this
problem.
4.2 Role of SCM in performance gap
A supplier is responsible for delivering high quality of products within specified time
period. It enables in proper flow of materials and information which is required in managing
operations. There is a great relationship between suppliers and operations of business. Any
interruption in flow of goods impact on operational efficiency. As elucidated by Ledford & Gast,
2018, supply chain plays a vital role in enhancing business efficiency. There are several roles of
SCM in organization. It depends on supplier and company goals that what roles and
responsibilities are assigned. Consequently, it is been identified that in each sector suppliers’
roles are different. Business is having a global network of suppliers interconnected with each
other. For each one their capacity, cost and quality are different. In auto mobile industry
suppliers provides goods at basic price. Generally, in this industry firm purchase from only one
supplier. So, they are completely dependent on their capacity. Whereas in retail organization
buys from several number of suppliers in case of high demand.
The main role of supplier in auto mobile sector is to ensure timely delivery of goods as
mentioned by enterprise and in proper quantity. Also, to reduce cost of finished goods and
improve its quality. A company engaged in auto mobile sector deals with different types of
suppliers. Each one is assigned separate roles. In addition to it, each supplier cost, quality and
capacity differs and is based on their role. Usually, it is analyzed that supplier is responsible for
meeting demand in right time. The demand can vary according to market condition. If it is not
met in specified time it will highly affect operations. Alongside, enterprise will not be able to
satisfy need of customers.
Chen, 2017, opposed that supplier role is to maintain business efficiency. They are
integral part of organization as they provide useful goods to produce final products. Also, they
assure that cost and quality remain stable. Through this, it helps in developing long term
25

relationship with them. Moreover, huge profits are gained by supplying goods in large quantity.
Besides this, supplier performance and capacity is enhanced. Business is benefited from it as
they produce more high quality products. a supplier also helps in giving ideas of new product
development. It is done by effective planning and developing strategies. In this way supplier
contributes in maintaining efficiency of business.
Bag & et.al., 2018, said that role of suppliers here comes into picture that affects any
business efficiency i.e. suppliers should develop a strategy for long tern based on which they can
identify total cost, increase quality of product and can improve their capacity which directly
impacts efficiency of business. Suppliers should try to maintain their total cost according to the
current competition which is beneficial for both suppliers and business. Knowledge about the
suppliers, their cost, quality and capacity also help the business to reduce the performance gap.
This knowledge about the suppliers will help the company to develop an idea of total cost,
spending and the quality of material they will get as well as in what time period they will be able
to fulfil the needs of the customers. This will help the business to gain a competitive advantage
according to the market and variety of supplier’s present.
In a study done by Murthy & Paul, 2017, it is stated that one thing that defines the
efficiency of business is their right choice of suppliers. Everything should fit in accordingly. So,
they need to choose the best suppliers for their product manufacturing as it will define their
image in the market for example if the suppliers are not able to deliver the product on time then
it will affect company’s reputation in the market towards their customers. Right choice of
suppliers is important in business as they will determine their company and make a brand
reputation in the people. Suppliers who are good at their work i.e. can deliver right number of
products on time with excellent quality and minimum cost affects the overall efficiency of the
company and reduced the performance gap present. Companies should perform a performance
evaluation to review their suppliers. If year by year performance of suppliers is continuously
decreasing then either they should focus to improve their supply efficiency or should change
their suppliers because this will eventually be a hindrance in the overall efficiency of their
business. Fairness and accuracy in this performance evaluation gives an overview to the
company about all the flaws in their system as well as their suppliers. The performance gap
should be reviewed yearly and feedback gap should be filled. This will help them to evaluate
26

their supplier’s efficiency, capacity, quality of product and total cost according and they can take
further actions required.
As said by Tangpong & et.al., 2015, engagement of suppliers with the business
determines company’s growth and for this communication between organization and suppers
should be proper and direct. Suppliers should update their complete structure, total coast,
complete process, required time period and current status to the company, so that they can
determine and plan their further actions regarding their final product according. This will help
the suppliers to complete their product delivery process on time and within the determined total
cost as well as help the company to plan their further actions according to the delivery of their
materials and product.
4.3 Factors leading to performance gap
A supplier performance is entirely dependent on its capacity and quality. Sometimes, cost
is not considered as an important factor. This is because organization compromises on cost rather
than quality. According to Prajogo, Oke & Olhager, 2016, many time supplier is not able to
supply raw materials as per requirements. It may be due to certain circumstances which affect
supplier performance. There are different factors which leads to performance gap. The most
common is market situation. A market economy runs on supply and demand. They both are
determinant of market condition. Besides this, any fluctuation in demand will automatically
affect another one. So, in order to fulfil demand business start producing more units. This is
because firm requirement increases. The entire pressure is shifted to suppliers. Hence, in this
situation supplier are not able to meet needs of company. They use stock which is left, but for
this they charge high price.
In view of Sorli & Kaufman, 2018, when capacity of supplier is affected their
performance is degraded. This leads to performance gap. On other hand, company or supplier
may not agree upon cost of goods. So, it will reduce quality of raw materials when cost is kept
low. The supplier capacity can significantly affect the volatile nature of customers demand as
well as the performance benchmarks of the organization. When automobile organizations are
able to visualize the capacity of their suppliers then it becomes very easy and convincing for
them to assess the risk. Particularly in the automobile industries the customer demand is not
uniform. Thus, the suppliers must ensure that they can manage the demand supply ration and
supply maturity level. It is very crucial for assessing the risk associated with the sudden changes
27

in the demand. For instance, when demand for the automobile increases rapidly and randomly
and if suppliers are not ready to cope up with the demand in terms of their capacity then it is
possible that organization may fail to explore the benefits of growth opportunity. It will make the
performance gap of the company wider.
According to Marcos & Prior, 2017, it is essential that supply chain capacity
management must be emphasized on regular basis so that vulnerabilities can be recognized. For
the organizations which are experiencing the balancing issues in performance gap can improve
their performance by enhancing their visibility and efforts towards the needs and capacity of
suppliers. For sustaining the profitability, it is vital that there must be significant balance
between consumer demand and supply. The organization can use predictive analytic so that they
can have an insight regarding possible demand pattern.
Kros, Kirchoff & Falasca, 2018, stated that proper planning and strategies to assure that
supplier capacities are not exceeded beyond limits can help organization to improve production
schedule. It will bring considerable differences in profit margins by reducing the unnecessary
consumption of the resources. The improper balance in the supplier capacity is one of the biggest
threats for the organization. The failure to meet the rising demands of customers or to supply the
products more than requirement both can be harmful for meeting the success needs of
organization. The supplier capacity can have long term effect on the success of organization. For
instance, when automobile industries fail to deliver the end product when required by the
customers then it creates a huge impact on the brand value of performance. However, for the
products which are in great demand the customers are also ready to accept the delay in supply. In
such cases it is also observed that instead of following this approach if automobile organizations
manage their supply capacity then they can explore more better and productive outputs.
In order to meet the demands and to avoid complications by limited supplier capacity
companies have to undergo through very complicated and resource consuming processes which
can increase the operational cost and profit margins can decline. Thus, for avoiding such
conditions it is recommended to organizations that they must develop suitable strategies and
necessary actions must be taken by them to balance the supplier capacity. It will improve the
performance by mitigating the risks and exploring new growth opportunities.
But on contrary Srai and Lorentz, 2018, said that market situation is not only factor for
performance gap. But capacity of supplier and price of related good contribute as well. The
28

business should determine capacity of supplier before selecting it. Here, capacity refers to
amount or units delivered by supplier in current or future situation. It also means capability of
supplier to meet organization requirement. Any variation in supplier capacity impacts on their
performance. They are not able to supply proper quantity of goods in specified time. Moreover, it
has been identified that in many situation suppliers tries to fulfil demand but do not maintain
quality. They try to improve their capacity and generate more profits. In context of ineffective
connectivity, the suppliers are not aware about future demand of organization. The data and
information is not shared due to which suppliers does not know about market condition. It
becomes reason for performance gap.
On the other hand Yawar & Seuring, 2017, argued that price of related good is also a
factor if performance gap. Here, goods are complements of one another which means that
increase in price of good will increase its demand and decrease in demand of its substitute.
4.4 Alternative taken by firm
In the opinion of Sammon and et.al., 2015, a performance gap can occur due to various
reasons. It directly effects on efficiency of firm and supplier performance. In this state an
effective decision has to be taken to resolve that gap. There are many alternatives exists which
can be followed to resolve gap. It depends on nature or level of performance gap and its impact
on business efficiency. Also, it is essential to analyze outcome of alternative taken. But in an
investigation done by Stevens & Johnson, 2016, it is found that many firms in auto mobile sector
try to resolve performance gap. It is best alternative taken by them. It helps business to maintain
strong relation with supplier. In this they identify factors leading to gap and then developing
strategies to resolve it. The manager of organization believed that taking this alternative have
benefited them a lot. The overall process of operating with suppliers have been modified.
Furthermore, it has been analyzed that different strategies are developed and executed. Due to
this supplier performance has improved as well. Moreover, by comparing all three alternatives it
is interpreted that resolving gap have been first choice for companies.
As elucidated by Veluri and et.al., 2018, it is very crucial to improve supplier efficiency
so that their capacity is increased. This is done by evaluating their performance with set
standards. Beside this, it has been observed that rather than switching to new supplier
organization prefer to resolve performance gap. It is rather easy procedure than selecting new
supplier. If the company is resolving the performance gap then it will be getting benefit as would
29

be increasing productivity of employees of organisation which is very much important. As with
the help of this analysis of gap manager could be able to examine all type of current practice of
business. As analyzing the gap within performance of quality of goods will be helping company
to ensure what are the gaps within expected or current practices. There will be need of many type
of data within setting up of expected standards or benchmarks including the reports on the
statistics or output of data as well.
However, it is very much essential that gap analysis is been correctly applied or used on
the variety of situations at the time when business is improving their quality of products. There
are many time when the leader of business is making their plan starting from month or year that
is leading towards future of business. Whole team within company would be the be able to
identify out very quickly the problems that need to be diagnosed so as to create the ways in
resolving issues and problems with integral changes with practice of business. The suppliers will
be easily handling overall procedure which is dealing with supplying of materials to customers
when they are identifying various gaps. At the time of identifying the gap within performance in
regard to quality and cost during the maturity level it will be very much helpful in evaluating the
impact within overall performance of employees. Thus this would be beneficial in providing and
evaluating after effects of measuring and analyzing performance of their employees with
implementation of quality control plan.
Relationship between cost, quality and capacity with supplier efficiency
Cost, quality, capacity etc. has always been the main fundamental requirements of
suppliers. These are the main criteria based on which suppliers’ performance, their efficiency are
measured. Nowadays customers demand is rising day by day, so companies are demanding high
qualities from their suppliers. In view of Soh & et.al., 2016, it is one of the most important
factors especially in Automobile industry. Automobiles should be much more reliable and
durable based on their quality. Choosing a correct supplier has become important for companies
as it affects them and their products in various ways such as: they help in saving cost and
needless procedures, should be more efficient so that they save time, labour force, resources. All
these things also improve operation efficiency and effectiveness.
As said by Joshi & et.al., 2018, quality of a product has become one of the most essential
criteria in supply chain management. Suppliers find this as a competitive strategy for stability in
business as in this industry at each and every level of production quality of product is required.
30

Suppliers quality also shows their ability to deliver goods that are needed to satisfy customers.
Organizations ensures that the material or service that suppliers provide are provided with
highest quality so that it doesn't hinder final quality of the product. This is done by companies by
supplier’s quality management matrix.
As elucidated by Sancha, Wong & Thomsen, 2016, cost of the product is also one of the
main criteria based on which suppliers are chosen. Most of the time suppliers' efficiency is
measured based on cost. In automobile industry many suppliers splash their prices drastically as
competition in this industry is increasing continuously. So many supplier's efficiency is judged
based on their cost as well as competitors cost based on low cost area. Today companies want the
best quality product in the lowest rate and based on this factor their capability and efficiency are
judged. The process of meeting these criteria is to improve their communication to reduce cost,
reduce transportation cost, use of universal technologies also helps suppliers to reduce their cost
of providing quality materials as today it has become one of the most important criteria for them
to remain competitive in the market. Competition on the basis of cost is becoming one of the
main competitive factors for supplier to focus on as switching cost for companies is very low.
Today suppliers for basic products such as steel, shafts, electronic items are in large number who
are ready to provide finished products in low cost and high quality.
According to Scuotto & et.al., 2017, capacity of suppliers are also becoming important
today as many companies’ basic requirements is that suppliers should have the capacity to
complete large amount of work in less duration of time. Suppliers capacity helps companies to
meet customers demand on time with less difficulty. Suppliers should try to increase their
capacity when needed especially at the time of high demand. This helps companies to save cost
of spending more on different suppliers. These are the main factors (Cost, quality, capacity) that
determine efficiency of suppliers based on which companies choose and invest on them.
4.5 Strategies to resolve performance gap
As stated by Kumar & Routroy, 2016, it has been said that in order to improve supplier
efficiency it is necessary to do capacity assessment and determine maturity level. This will help
in identifying individual supplier capacity and then accordingly they can be selected.
Furthermore, it can be evaluated that many other things are taken into consideration as well. It
includes cost, quality, etc. Through this, it becomes easy for company to evaluate their
efficiency. Besides this, there are many other ways which is implemented to resolve performance
31

gap. For example, supplier chain collaboration and supplier development technique or model is
used. This is useful in improving the overall efficiency of supplier. Here, many changes are made
in several stages of supply chain management. In addition to it, organisation benefits from it as
they do not have switch supplier or produce raw materials themselves. So, time as well as cost is
saved. The first strategy of business is to strengthen network and develop strong relation with
supplier. It enables in determining deviation between supplier and enterprise.
According to Lamba and Singh, 2018, in many cases of performance gap, companies
have opted for first alternative that is switching to another supplier. But it has been observed that
it has not benefited in long term. There has been rise in cost of goods. Moreover, in situation of
high demand supplier is not able to maintain quality of goods. On contrary sometimes few
organisations have benefited through this as they have effectively maintained efficiency of
suppliers.
According to Ledford & Gast, 2018, it has been stated that supplier performance is
measured by using data envelopment analysis (DEA) as a tool (How data envelopment works.
1994). It is a mathematical model which measuring supplier performance on basis of standards
set on grounds. Basically, this tool is used in oil and gas industry where there are few suppliers.
A framework is been introduced which help firm in attaining high quality from suppliers. In this
an action plan is developed that consists of three dimensions the first one is implementation
complexity, where resources and time is required to execute activity, second is rate of expected
performance based on activity and third is advanced. This can be observed from figure which is
given below –
32

Figure 2 Supply chain activity
(Source : Trent and Monczka, 1999)
Supplier base optimisation – In this activity firm selects appropriate number of suppliers whom
they will do business. Here, optimization capacity is considered. It assists is selecting best
supplier during time of high demand. Thus, optimization is best method used to increase quality
of goods supplied. It is responsibility of firm to implement this process. it will enable in setting
more complex activities for supplier.
Supplier performance measurement- The enterprise must evaluate data of supplier
performance measuring practices. The procurement manager analyses improvement
opportunities, performance trends, etc. to enhance supplier capacity. This process helps in
determining capability of suppliers.
Establishing supplier targets – It is not necessary that the above process is successful.
Therefore, organisation can follow alternative method (Cannavacciuolo & et.al., 2015). They
can establish supplier improvement targets. Through this, capacity can be enhanced. if supplier
have met stated objectives then another high goals can be set.
Supplier improvement rewards – Businesses should share rewards with suppliers to strengthen
their relationship with them. there are many ways through which it can be done such as sharing
33

of resources, long term contract with high cost, etc. with help of this, supplier performance can
be accelerated.
Supplier certification- It refers to process of operating and controlling of supplier’s practices.
With help of certification specific part or method of operation can be improved. it supports in
enhancing supplier performance.
Contributing resources to suppliers- An organisation makes efforts for supplier development
generally for two reasons that are to improve supplier performance capability and second to
develop a new one. Hence, developing new one is useful in ensuring high quality performance
supplier. Then, resources are allocated to them.
Supplier involvement in product development – Supplier also gives an insight to business on
how to produce products efficiently. This can be done by simplifying product design without
affecting its quality and cost.
In a study conducted by Gligor, Esmark & Holcomb, 2015, it was observed that without
having a proper supplier base it is difficult to produce low cost and high quality goods.
Therefore, it is important to evaluate supplier performance so that performance gap can be
resolved. There is a method through which it can be done.
34

Chapter 5 Discussion and Conclusion
Discussion
The main reason for outsourcing of manufacturing product by companies in auto mobile
industry is saving of time and low cost. Also, due to this they are able to design and develop high
quality goods. Another reason for outsourcing is in vehicle there are number of components
which are required (Vesalainen & Kohtamäki, 2015). So, it is not possible for organisation itself
to insource all of them in short time period. Thus, they decide to outsource such goods which is
easily available from suppliers. It saves cost and support in maintaining operational efficiency.
Furthermore, it is easy for auto mobile firms as they just have to assemble it at workshop. Now,
in maturity level is maintained supplier performance is up to the set goals. Thus, depending on
maturity level, efficiency is enhanced. this gives an actual idea to how much extent performance
has to be improved.
From the above discussion it is can be concluded that performance gap is major problem
through which supplier efficiency is hampered. It directly leads to either degradation of quality
or rise in cost of goods. Also, a supplier role is to deliver right quantity of goods in right time to
organisation. it has been stated that business is having a large network of supplier. Therefore, it
is necessary for them to identify capacity of each supplier so that in situation of high demand it
can be fulfilled. Hence, their performance is been measured by specifying some criteria and then
selection is done.
It has been stated that majorly in auto mobile sector performance gap occurs due to
change in market situation. An increase in demand of certain products creates pressure on
supplier to supply more goods in given time period. But due to their insufficient capacity it is not
possible for them to do so. Therefore, in this situation performance gap occurs. So, in many cases
fluctuation in demand has been crucial factor. This was the reason in Tesla and Nintendo when
there was uncertain rise in demand. Hence, it affected both company and supplier efficiency to a
great extent.
Similarly, it has been summarised many firms in auto mobile industry try to resolve
problems or issues in performance gap. It is because reducing gap is useful in preserving
business and supplier efficiency (Mpinganjira, Roberts-Lombard & Svensson, 2017). Also, it
has benefited them in long term growth and development. In order to resolve it strategies are
been formulated. Then, supplier performance is measured to determine reason of performance
35

gap. However, it supports in identifying how well supplier has been able to perform with set
goals and objectives. Here, a buyer supplier model is used which includes different activities.
Thus, reviewing each one in depth give an overview about supplier capability. Along with it,
solving gap has provided advantage in many ways. Through this, efficiency is also been
evaluated. So, it is very useful for enterprise in various ways. In study it has been analysed that
switching to another supplier requires huge capital and consumes time as well. In this they have
to follow different methods to select supplier. It is done by identifying capacity, location, quality
of goods, etc. For these all an effective plan is required. During it, business operations are
hampered. Additionally, it is beneficial for supplier as well.
As argued by Tanskanen & Aminoff, 2015, organisation have also opt for switching
supplier. This is because they are continuously facing issues related to performance gap. So, in
order to overcome it permanently business decide to select new supplier. It has been beneficial
for them rather than solving performance gap. Now, business efficiency has enhanced allowing
them to develop new products. So, it is not necessary that performance gap must be solved. It
might be possible that in spite of solving it efficiency is not improved. A supplier is responsible
for delivering high quality of products within specified time period. It enables in proper flow of
materials and information which is required in managing operations. There is a great relationship
between suppliers and operations of business. In a study conducted by Huq, Chowdhury &
Klassen, 2016, performance gap is interrelated to business efficiency. This can be stated by fact
that if organization is able to reduce gap then it helps in improving overall operational efficiency.
But there are some factors which impact in negative way on productivity.
The organisation helps supplier in finding out their weak areas and providing resources to
solve it. this leads to building strong relation with them. this increases their productivity. So, in
case of critical situation supplier assure that business efficiency is not impacted. There is proper
flow of goods. It has been found that in many cases switching over to new supplier have resulted
in similar situation for business. This alternative is not been beneficial for long term. Then, same
procedure is followed where efforts are made to solve gaps. At last firm focuses on resolving gap
so that in future there are less chances of facing such issues. It has been evaluated that
particularly, in this effort are made to increase capacity of supplier and collaborating them with
company. there are different elements added to boost supplier efficiency. For example-
36

information and resource sharing, collaborative environment, etc. With help of these, it has
added in new roles and responsibility of supplier.
On contrary Karaer, Kraft & Khawam, 2017, said that many organisations are facing
issue in terms of both cost and quality. But they are only able to resolve one to somewhat extent.
therefore, the situation has remained the same. Many a time when huge efforts are been made, at
last gap is not resolved. Then, business get stuck in particular situation. They are left only with
one option that is to switch to another supplier. It can be stated that both situations affect in
similar way.
There are various strategies available to resolve performance gap. It depends on level of
gap and buyer supplier relation that which one is applicable. In buyer supplier model there are
some criteria which is set by Dickson (1966) to evaluate efficiency of supplier. Usually, the
criteria are as ranked from 1 to 5 which is as follows :-
Rank Factor
1 Quality
2 Delivery
3 Performance history
4 Warranties and claim policies
5 Production facilities and capacity
6 Price
By using these criteria supplier performance is been evaluated. But Weber & et.al.,
(1991) modified above criteria and developed his own. He included some more which are as
follows :-
Rank Factor
1 Net price
2 Delivery
3 Quality
37

4 Production facilities and capacity
5 Geographical location
6 Technical capability
It is said that quality and delivery are top most criteria through which supplier
performance is evaluated. Then, comes price which is considered. In order to analyse efficiency,
the criteria vary in some situations. But the commonly used and preferred are cost, quality and
delivery of goods. there occurs difference in supplier performance with change in criteria. In
addition to it, some other options included in evaluation are level of service, flexibility, etc. it
determines what is effect on supplier capacity when demand rises. There is no fixed method
through which supplier performance is evaluated. So, certain criteria are been used in it. Every
business has their own criteria on basis of which evaluation is done (Govindan & et.al., 2015).
But some authors have determined some models which can be used in this and can also be used
for selecting suppliers. The models are Weighted linear model, Matrix method, Grouping
method, etc.
Conclusion
It is summarised that suppliers and business efficiency are interrelated to each other. Any
variation in supply of raw materials directly affect business productivity. So, firm evaluate
supplier efficiency and, on that basis, they are selected. Then cost and quality elements are
considered. There are many criteria mentioned by different authors which are used in measuring
supplier performance. But selection of criteria depends on standards or method used by
company. So, it is important to define criteria and then evaluate efficiency. this way has been
highly useful in analysing supplier performance (Winter & Lasch, 2016). It has assisted in giving
numeric values and easily comparing it with other suppliers. The performance and success of the
business greatly depends upon the effectiveness of its suppliers. Also, it is concluded that the
supplier capacity is directly linked with the profitability and operational efficiency of the
organisation. The brand value of business may bring vast growth opportunities and strong
customer segment. However, without suppliers it will be impossible for the organisation to
assure the quality services in terms of on time delivery of products and services. The efficiency
of suppliers makes it possible for the business to supply the products as per the demands of
customers. When business strategies are in alignment with the suppliers then it helps to minimize
38

the performance failure risk. For the growth of business, it is highly essential for the
organisations to understand the supplier capacity and develop effective supply chain
management strategies.
By analysing data and information, it has been summarised that most of performance gap
occurs due to insufficient capacity of supplier (Nair, Jayaram & Das, 2015). It is because many
times suppliers are not able to meet requirements identified by firms due to rise in demand. So,
emphasis is on enhancing supplier efficiency. It has resulted in making changes in operation and
practices of supplier. With this there is major improvement in capacity of supplier. Apart from it,
companies have integrated cost and quality with capacity. Therefore, each factor is dependent on
one another. It has been said that supplier demand high cost for goods when demand from other
side increases. But businesses are not able to afford it. this leads to occurring of performance
gap. It is another factor which affect supplier efficiency. Hence, every firm make efforts that
capacity is maintained and cost is low. This enables in smooth flow of operations. Market
situation affects supplier’s capacity in various ways like: if the demand of the product is
continuously increasing then suppliers need to increase their capacity of delivering products on
time in order to meet customers demand (Schätzle & Jacob, 2017). If the demand of the product
is decreasing continuously then suppliers need to focus on improving their quality and cost of the
product and deliver the product on time so that customers get attracted towards the product
because if the demand doesn't increase then it will affect their overall capacity and efficiency. If
the substitute product available is better in quality then it will also affect the suppliers as they
will be forced to improve their quality in order to compete with competitive product
It has been concluded that there is direct relationship between cost, quality and capacity
within supplier. Any change in these can have either positive or negative impact on supplier
efficiency. Also, from this supplier performance is been identified and evaluated. Now, only
through help of one element performance gap can not be solved. They all have to be analysed
and then changes are made. Moreover, if gap is not solved then it hampers business efficiency.
due to this demand is not fulfilled. There are some common criteria which is used by companies
to evaluate supplier performance (Çebi & Otay, 2016). They are price, quality, delivery,
production capability, etc. the use of criteria depend on type of supplier and industry in which
organisation is engaged. In oil and gas industries in Norway DEA model is used for evaluation. It
is a linear programming based model which convert multiple input and output procedures into
39

single measure of productivity efficiency. DEA gives information which helps in setting
benchmark and then evaluating efficiency. This model has helped oil industries to a great extent.
It has provided a framework through which supplier development is done. By using process and
formulating strategies supplier development is done. Here, some major components are defined
that makes it easy in evaluating performance of supplier.
Companies have resolved performance gaps by implementing buyer supplier model. With
this, they have measured supplier’s efficiency in all terms. They have got an idea about issues
which exists between them. by using model cost is predefined, quality standards are set and
capacity is determined by business. besides this, at each stage performance is measured with
goals and objective set. This has resulted in enhancing supplier efficiency. However, by solving
gap has led to supplier development. there is positive impact on business productivity as well.
Due to this, supplier capacity has increased. Alongside it, the relationship between them has
strengthened. Enhance in supplier performance have given advantage to companies in many
ways. For instance, by sharing of resources information is exchanged in effective way. they have
also helped in product development. it is done by supplying new goods through which various
new finished goods are produced (Schätzle & Jacob, 2017). Consequently, improvement in
supplier productivity has boosted company production process. Now, more number of units are
manufactured to meet market demand. For many of enterprises, solving performance gap have
given advantage rather than switching to new one or insourcing goods.
Hereby, it is concluded that whenever there occurs a situation of high demand of goods,
suppliers are not able to handle that pressure. They have to compromise either in terms of quality
or cost. This hamper their capacity which further leads to ineffective business performance.
Consequently, in order to fulfil demand firm, have to switch to another supplier or start
insourcing it. so, when they are not in condition to resolve issue a quick decision is taken and
supplier is selected. In this a particular process is followed which allows in selecting proper
supplier and effective measures are taken to assure that performance gap does not occur. On
other hand, it can be summarised that increase in supplier efficiency impact in positive way to
business. So, they must try to develop supplier capability and take effective measures to reduce
impact on factors due to which performance gap occurs. This will be beneficial in strengthening
relation with suppliers for long term growth and development of business.
40

REFERENCES
Books and journals
Bag, S. & et.al., (2018). Ethical Practices, Buyer-Supplier Relationship, and Innovative Green
Procurement Performance: Some Exploratory Results. In Ethics and Decision-Making for
Sustainable Business Practices (pp. 1-23). IGI Global.
Beske-Janssen, P., Johnson, M. P., & Schaltegger, S. (2015). 20 years of performance
measurement in sustainable supply chain management–what has been achieved?. Supply
chain management: An international Journal. 20(6). 664-680.
Cannavacciuolo, L. & et.al., (2015). Knowledge elicitation and mapping in the design of a
decision support system for the evaluation of suppliers’ competencies. VINE. 45(4). 530-
550.
Cao, M and et.al., (2010). Supply chain collaboration: conceptualisation and instrument
development. International journal of production research. 48 (22).pp. 6613-6635
Çebi, F., & Otay, İ. (2016). A two-stage fuzzy approach for supplier evaluation and order
allocation problem with quantity discounts and lead time. Information Sciences. 339.
143-157.
Chae, S., Choi, T. Y., & Hur, D. (2017). Buyer power and supplier relationship commitment: A
cognitive evaluation theory perspective. Journal of Supply Chain Management. 53(2).
39-60.
Chen, L. T. (2017). Buyer–supplier relationship and optimisation model in a dynamic
collaborative network with shortages allowed. International Journal of Computer
Integrated Manufacturing. 30(7). 755-767.
Daniel, R. and et.al., (1998). The relationships between supplier development, commitment,
social capital accumulation and performance improvement. Journal of operations
management. 25 (2). pp. 528-545
de Sousa Jabbour, A. B. L. & et.al., (2015). Green supply chain management and firms’
performance: Understanding potential relationships and the role of green sourcing and
some other green practices. Resources, Conservation and Recycling. 104. 366-374.
41

Gao, G. Y., Xie, E., & Zhou, K. Z. (2015). How does technological diversity in supplier network
drive buyer innovation? Relational process and contingencies. Journal of Operations
Management. 36. 165-177.
Gligor, D. M., Esmark, C. L., & Holcomb, M. C. (2015). Performance outcomes of supply chain
agility: when should you be agile?. Journal of Operations Management. 33. 71-82.
Govindan, K. & et.al., (2015). Multi criteria decision making approaches for green supplier
evaluation and selection: a literature review. Journal of Cleaner Production. 98. 66-83.
Handfield, R. B. & et.al., (2015). How can supply management really improve performance? A
knowledge‐based model of alignment capabilities. Journal of Supply Chain
Management. 51(3). 3-17.
Huq, F. A., Chowdhury, I. N., & Klassen, R. D. (2016). Social management capabilities of
multinational buying firms and their emerging market suppliers: An exploratory study of
the clothing industry. Journal of Operations Management. 46. 19-37.
Jajja, M. S. S. & et.al., (2016). Supply chain strategy and the role of suppliers: evidence from the
Indian sub-continent. Benchmarking: An International Journal. 23(7). 1658-1676.
Jónasdóttir, S. K. and et.al., (2018). Applying case study methodology to occupational science
research. Journal of Occupational Science, 1-15.
Joshi, S. P. & et.al.,. (2018). Strategies for Buyer Supplier Relationship Improvement: Scale
Development and Validation. Procedia Manufacturing. 20. 470-476.
Kaliani Sundram, V. P. & et.al., (2016). Supply chain practices and performance: the indirect
effects of supply chain integration. Benchmarking: An International Journal. 23(6).
1445-1471.
Karaer, Ö., Kraft, T., & Khawam, J. (2017). Buyer and nonprofit levers to improve supplier
environmental performance. Production and Operations Management. 26(6). 1163-1190.
Kros, J. F., Kirchoff, J. F., & Falasca, M. (2018). The impact of buyer-supplier relationship
quality and information management on industrial vending machine benefits in the
healthcare industry. Journal of Purchasing and Supply Management.
Kumar, C. S., & Routroy, S. (2016). Case Application of a Methodology for Determining a
Manufacturer’s Preferred Customer Status with Suppliers. Engineering Management
Journal. 28(1). 25-38.
42

Kumar, D., & Rahman, Z. (2016). Buyer supplier relationship and supply chain sustainability:
empirical study of Indian automobile industry. Journal of Cleaner Production. 131. 836-
848.
Lamba, K. and Singh, S.P., (2018). Dynamic supplier selection and lot-sizing problem
considering carbon emissions in a big data environment. Technological Forecasting and
Social Change.
Ledford, J. R., & Gast, D. L. (2018). Single case research methodology: Applications in special
education and behavioral sciences. Routledge.
Lew, S., Yang, A. H., & Harklau, L. (2018). Qualitative methodology. In The Palgrave
Handbook of Applied Linguistics Research Methodology (pp. 79-101). Palgrave
Macmillan, London.
Lima-Junior, F. R., & Carpinetti, L. C. R. (2016). Combining SCOR® model and fuzzy TOPSIS
for supplier evaluation and management. International Journal of Production
Economics. 174. 128-141.
Liou, J. J. & et.al., (2016). New hybrid COPRAS-G MADM Model for improving and selecting
suppliers in green supply chain management. International Journal of Production
Research. 54(1). 114-134.
Litosseliti, L. (Ed.). (2018). Research methods in linguistics. Bloomsbury Publishing.
Liu, S., Wang, L., & Huang, W. W. (2017). Effects of process and outcome controls on business
process outsourcing performance: Moderating roles of vendor and client capability
risks. European Journal of Operational Research. 260(3). 1115-1128.
Marcos, J., & Prior, D. D. (2017). Buyer-supplier relationship decline: A norms-based
perspective. Journal of Business Research. 76. 14-23.
Mpinganjira, M., Roberts-Lombard, M., & Svensson, G. (2017). Validating the relationship
between trust, commitment, economic and non-economic satisfaction in South African
buyer-supplier relationships. Journal of Business & Industrial Marketing. 32(3). 421-431.
Murthy, V., & Paul, B. (2017). Nature of buyer–supplier relationship: small businesses in a
Small City. Journal of Small Business Management. 55(3). 365-387.
Nair, A., Jayaram, J., & Das, A. (2015). Strategic purchasing participation, supplier selection,
supplier evaluation and purchasing performance. International Journal of Production
Research. 53(20). 6263-6278.
43

Parida, A. and et.al., (2015). Performance measurement and management for maintenance: a
literature review. Journal of Quality in Maintenance Engineering. 21(1). pp.2-33.
Prajogo, D., Oke, A., & Olhager, J. (2016). Supply chain processes: Linking supply logistics
integration, supply performance, lean processes and competitive
performance. International Journal of Operations & Production Management. 36(2).
220-238.
Ross, D. F. (2015). Distribution Planning and control: managing in the era of supply chain
management. Springer.
Sammon, E. and et.al., (2015). Make the Promise True: a Monitoring and Evaluation Framework
for Measuring Quality in Child Protection Service Delivery in Zimbabwe. Child
Indicators Research. 8(3). pp.623-640.
Sancha, C., Wong, C. W., & Thomsen, C. G. (2016). Buyer–supplier relationships on
environmental issues: a contingency perspective. Journal of Cleaner Production. 112.
1849-1860.
Schätzle, S., & Jacob, F. (2017). Stereotypical supplier evaluation criteria as inferred from
country-of-origin information. Industrial Marketing Management.
Schätzle, S., & Jacob, F. (2017). Stereotypical supplier evaluation criteria as inferred from
country-of-origin information. Industrial Marketing Management.
Scuotto, V. & et.al., (2017). A multiple buyer–supplier relationship in the context of SMEs’
digital supply chain management. Production Planning & Control, 28(16), 1378-1388.
Soh, K. L. & et.al., (2016). The role of suppliers in establishing buyer-supplier relationship
towards better supplier performance. International Journal of Productivity and Quality
Management. 17(2). 183-197.
Sorli, A., & Kaufman, S. (2018). Experimential Methodology in Consciousness
Research. NeuroQuantology. 16(3).
Srai, J.S. and Lorentz, H., (2018). Developing design principles for the digitalisation of
purchasing and supply management. Journal of Purchasing and Supply Management.
Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International
Journal of Physical Distribution & Logistics Management. 46(1). 19-42.
44

Tangpong, C. & et.al., J. (2015). A review of buyer-supplier relationship typologies: progress,
problems, and future directions. Journal of Business & Industrial Marketing. 30(2). 153-
170.
Tanskanen, K., & Aminoff, A. (2015). Buyer and supplier attractiveness in a strategic
relationship—A dyadic multiple-case study. Industrial Marketing Management. 50. 128-
141.
Tsui, C. W., Tzeng, G. H., & Wen, U. P. (2015). A hybrid MCDM approach for improving the
performance of green suppliers in the TFT-LCD industry. International Journal of
Production Research. 53(21). 6436-6454.
Veluri, S. and et.al., (2018). Improving Manufacturing Efficiencies through Industry 4.0
Technologies in Aerospace (No. 2018-01-1929). SAE Technical Paper.
Vesalainen, J., & Kohtamäki, M. (2015). Toward a typological view of buyer–supplier
relationships: Challenging the unidimensional relationship continuum. Industrial
Marketing Management. 49. 105-115.
Whipple, J. M., Wiedmer, R., & K. Boyer, K. (2015). A dyadic investigation of collaborative
competence, social capital, and performance in buyer–supplier relationships. Journal of
Supply Chain Management. 51(2). 3-21.
Winter, S., & Lasch, R. (2016). Environmental and social criteria in supplier evaluation–Lessons
from the fashion and apparel industry. Journal of cleaner production. 139. 175-190.
Woo, C. & et.al., (2016). Suppliers' communication capability and external green integration for
green and financial performance in Korean construction industry. Journal of Cleaner
Production. 112. 483-493.
Xie, E., Liang, J., & Zhou, K. Z. (2016). How to enhance supplier performance in China: An
integrative view of partner selection and partner control. Industrial Marketing
Management. 56. 156-166.
Yawar, S. A., & Seuring, S. (2017). Management of social issues in supply chains: a literature
review exploring social issues, actions and performance outcomes. Journal of Business
Ethics. 141(3). 621-643.
Zhu, S. and et.al., (2018). How supply chain analytics enables operational supply chain
transparency: An organizational information processing theory perspective. International
Journal of Physical Distribution & Logistics Management. 48(1). pp.47-68
45

Online
Functions of supply chain management. 2018. [online] Available Through :
<https://talentedge.in/articles/5-functions-supply-chain-management/>
Research Philosophy. 2018. [Online]. Available through:
<https://research-methodology.net/research-philosophy/>.
SNES classic. 2017 [Online]. Available through: https://blog.mp-objects.com/snes-classic-a-
problem-with-long-term-planning-or-supply-chain-execution
How data envelopment works. 1994. [Online]. Available through:
<https://banxia.com/frontier/resources/how-data-envelopment-analysis-works/ >
46

47

48