In search of supplier flexibility performance measurement

Abstract

Purpose: The purpose of this study is to identify, characterize and assess supplier flexibility measurement practices in the order-to-delivery process. Design/methodology/approach: The study involved a survey; participants were 224 purchasing managers at Swedish manufacturing companies that had more than 20 employees. Findings: Scrutiny of the details of measurement practices revealed that most respondents actually do not specifically measure supplier flexibility. Instead they measure other measures like delivery reliability, conduct qualitative follow-ups, or cannot specify how supplier flexibility is measured. It was acknowledged that they measure different supplier flexibility aspects, and the applied measures were characterized, e.g. in terms of which flexibility dimension they represent. Research limitations/implications: Conceptual clarifications and adaptations to measuring supplier flexibility in the order-to-delivery process are provided. The identified measures can be a contribution in further developing literature on flexibility performance measurement. Practical implications: Purchasing, logistics and supply chain managers in search of supplier flexibility performance measurement can find ways to measure and an extended flexibility vocabulary. This has the potential to improve flexibility in the supply chain. Originality/value: Even though flexibility is claimed as being an important competitive advantage, few empirical studies and operationalized measures exist, particularly in the order-to-delivery process.