LSRM Practice | Description | Literature |
Supply flexibility (SF) | · Price, quality, and production capability offered by suppliers. · Delivery performance of suppliers. · Innovation and co-design abilities of suppliers. · Supplier capacity to respond flexibly to the firm’s requests. · Supplier geographical location. · Supplier reputation and financial position. | [12] [13] [37] [38] [39] |
JIT delivery (JD) | · Delivery of small lot sizes in high frequency by suppliers. · Delivery of the right quality of materials in the right quantity, right time, and right manner. · Key suppliers are located in close proximity to the customer’s plant. · The use of pull system for ordering from suppliers. | [26] [27] [31] [33] [40] [41] [42] [43] |
Information integration (II) | · Real time access of suppliers to the firm’s demand information, inventory levels, and production planning. · Suppliers’ willingness to disclose cost and other information to the firm. · Trust in shared information. · Regular feedback from the firm on supplier performance. · Training and development programs for continuous improvement of suppliers. · Involvement of suppliers in new product development process. | [7] [12] [29] [31] [38] [41] [42] [43] |
Supplier partnership (SP) | · Close contact with suppliers. · Sign and commit to a long-term relationship with suppliers. · Confidence in supplier reliability and integrity. · High commitment. · Regular meetings and joint projects with suppliers. | [12] [31] [43] [44] [45] |