Casting Users- Perspectives on Foundries as Suppliers
Global competition is tightening and companies have
to think how to remain competitive. The main aim of this paper is to
discuss how Finnish foundries will remain competitive. To fulfil the
aim, we conducted interviews in nine companies using castings and
analysed buyer–supplier relationships, current competitive
advantages of Finnish foundries and customer perspectives on how
Finnish foundries remain competitive. We found that the customerfoundry
relationship is still closer to traditional subcontracting than
partnering and general image of foundries is negative. Current
competitive advantages of Finnish foundries include designing
cooperation, proximity and flexibility. Casting users state that
Finnish foundries should sell their know-how and services instead of
their capacity, concentrate on prototype, single and short series
castings and supply ready-to-install cast components directly to
customers- assembly lines.
[1] J. Palokangas, "Status and Scenarios of Technology Industries (In
Finnish Teknologiateollisuuden tilanne ja näkymät)," in Seminar of
Castings Use, Finland, April 12 - 13, 2007.
[2] J.H. Dyer, D.S. Cho and W. Chu, "Strategic supplier segmentation: The
next "best practice" in supply chain management," California
Management Review, vol 40, pp. 57-77, 1998.
[3] J.S. Oberoi and J.S. Khamba, "Strategically managed buyer-supplier
relationships across supply chain: an exploratory study," Human Systems
Management, vol 24, pp. 275-283, 2005.
[4] R.O. Olsen and L.M. Ellram, "A portfolio approach to supplier
relationships," Industrial Marketing Management, vol 26, pp. 101-113,
1997.
[5] M.Bensaou, "Portfolios of buyer-supplier relationships," Sloan
Management Review, pp. 35-44, 1999.
[6] A. Kaufman, C.H. Wood and G. Theyel, "Collaboration and technology
linkages: a strategic supplier typology," Strategic Management Journal,
vol 21, pp. 649-663, 2000.
[7] G. Svensson, "Supplier segmentation in the automotive industry: a
dyadic approach of a managerial model," International Journal of
Physical Distribution & Logistics Management, vol 34, pp. 12-38, 2004.
[8] B. Johnson and L. Burke, Educational Research: Quantitative,
Qualitative, and Mixed Approaches. Boston: Allyn & Bacon, 2004.
[9] P. Töttö, "Beyond qualitative and quantitative research? Methodpolitical
discussion (In Finnish "Kvalitatiivisen ja kvantitatiivisen tuolle
puolelle? Metodipoliittinen puheenvuoro")," Sosiologia, vol 36, pp. 280-
292, 1999.
[10] T. Seppälä, "Buyer-supplier relationships and sourcing of strategic
components." Licentiate thesis. Turku: Turku School of Economics and
Business Administration, 2001.
[11] M.P. Pérez and A.M. Sanchéz, "Supplier relations and flexibility in the
Spanish automotive industry," Supply Chain Management: An
International Journal, vol 6, pp. 29-38, 2001.
[12] P.M. Simpson, J.A. Siguaw and S.C. White, "Measuring the
performance of suppliers: an analysis of evaluation processes," The
Journal of Supply Chain Management, vol 38, pp.29-41, 2002.
[13] C.A. Weber, J.R. Current and W.C. Benton, "Vendor selection criteria
and methods," European Journal of Operational Research, vol 50, pp.
2-18, 1991.
[14] P. Kraljic, "Purchasing must become supply management," Harvard
Business Review, pp. 109-117, September-October 1983.
[15] R.R. Kamath and J.K. Liker, "A second look at Japanese product
development," Harvard Business Review, pp. 4-14, November-
December 1994.
[16] R.J. Fontenot and E.J. Wilson, "Relational exchange: a review of
selected models for a prediction matrix of relationship activities,"
Journal of Business Research, vol 39, pp.5-12, 1997.
[17] S.N. Wasti and J.K. Liker, "Risky business or competitive power?
Supplier involvement in Japanese product development," Journal of
Product Innovation Management, vol 14, pp. 337-355, 1997.
[18] M. Kotabe, X. Martin and H. Domoto, "Gaining from vertical
partnerships: knowledge transfer, relationship duration, and supplier
performance improvement in the U.S. and Japanese automotive
industries," Strategic Management Journal, vol 24, pp. 293-316, 2003.
[19] J.K. Liker, R.R. Kamath, S.N. Wasti and M. Nagamachi, "Supplier
involvement in automotive component design: are there really large US
Japan differences?," Research Policy, vol 25, pp. 59-89, 1996.
[20] T.Y. Choi and J.L. Hartley, "An exploration of supplier selection
practices across the supply chain," Journal of Operations Management,
vol 14, pp. 333-343, 1996.
[21] H. Hernesniemi, Successful subcontractor 2015: Vision and actions (In
Finnish Menestyvä alihankkija 2015: Visio ja toimenpiteet). Finland:
Teknologiateollisuus ry, 2007.
[22] D.M. Lambert and M.C. Cooper, "Issues in Supply Chain
Management.," Industrial Marketing Management, vol 29, pp. 65-83,
2000.
[1] J. Palokangas, "Status and Scenarios of Technology Industries (In
Finnish Teknologiateollisuuden tilanne ja näkymät)," in Seminar of
Castings Use, Finland, April 12 - 13, 2007.
[2] J.H. Dyer, D.S. Cho and W. Chu, "Strategic supplier segmentation: The
next "best practice" in supply chain management," California
Management Review, vol 40, pp. 57-77, 1998.
[3] J.S. Oberoi and J.S. Khamba, "Strategically managed buyer-supplier
relationships across supply chain: an exploratory study," Human Systems
Management, vol 24, pp. 275-283, 2005.
[4] R.O. Olsen and L.M. Ellram, "A portfolio approach to supplier
relationships," Industrial Marketing Management, vol 26, pp. 101-113,
1997.
[5] M.Bensaou, "Portfolios of buyer-supplier relationships," Sloan
Management Review, pp. 35-44, 1999.
[6] A. Kaufman, C.H. Wood and G. Theyel, "Collaboration and technology
linkages: a strategic supplier typology," Strategic Management Journal,
vol 21, pp. 649-663, 2000.
[7] G. Svensson, "Supplier segmentation in the automotive industry: a
dyadic approach of a managerial model," International Journal of
Physical Distribution & Logistics Management, vol 34, pp. 12-38, 2004.
[8] B. Johnson and L. Burke, Educational Research: Quantitative,
Qualitative, and Mixed Approaches. Boston: Allyn & Bacon, 2004.
[9] P. Töttö, "Beyond qualitative and quantitative research? Methodpolitical
discussion (In Finnish "Kvalitatiivisen ja kvantitatiivisen tuolle
puolelle? Metodipoliittinen puheenvuoro")," Sosiologia, vol 36, pp. 280-
292, 1999.
[10] T. Seppälä, "Buyer-supplier relationships and sourcing of strategic
components." Licentiate thesis. Turku: Turku School of Economics and
Business Administration, 2001.
[11] M.P. Pérez and A.M. Sanchéz, "Supplier relations and flexibility in the
Spanish automotive industry," Supply Chain Management: An
International Journal, vol 6, pp. 29-38, 2001.
[12] P.M. Simpson, J.A. Siguaw and S.C. White, "Measuring the
performance of suppliers: an analysis of evaluation processes," The
Journal of Supply Chain Management, vol 38, pp.29-41, 2002.
[13] C.A. Weber, J.R. Current and W.C. Benton, "Vendor selection criteria
and methods," European Journal of Operational Research, vol 50, pp.
2-18, 1991.
[14] P. Kraljic, "Purchasing must become supply management," Harvard
Business Review, pp. 109-117, September-October 1983.
[15] R.R. Kamath and J.K. Liker, "A second look at Japanese product
development," Harvard Business Review, pp. 4-14, November-
December 1994.
[16] R.J. Fontenot and E.J. Wilson, "Relational exchange: a review of
selected models for a prediction matrix of relationship activities,"
Journal of Business Research, vol 39, pp.5-12, 1997.
[17] S.N. Wasti and J.K. Liker, "Risky business or competitive power?
Supplier involvement in Japanese product development," Journal of
Product Innovation Management, vol 14, pp. 337-355, 1997.
[18] M. Kotabe, X. Martin and H. Domoto, "Gaining from vertical
partnerships: knowledge transfer, relationship duration, and supplier
performance improvement in the U.S. and Japanese automotive
industries," Strategic Management Journal, vol 24, pp. 293-316, 2003.
[19] J.K. Liker, R.R. Kamath, S.N. Wasti and M. Nagamachi, "Supplier
involvement in automotive component design: are there really large US
Japan differences?," Research Policy, vol 25, pp. 59-89, 1996.
[20] T.Y. Choi and J.L. Hartley, "An exploration of supplier selection
practices across the supply chain," Journal of Operations Management,
vol 14, pp. 333-343, 1996.
[21] H. Hernesniemi, Successful subcontractor 2015: Vision and actions (In
Finnish Menestyvä alihankkija 2015: Visio ja toimenpiteet). Finland:
Teknologiateollisuus ry, 2007.
[22] D.M. Lambert and M.C. Cooper, "Issues in Supply Chain
Management.," Industrial Marketing Management, vol 29, pp. 65-83,
2000.
@article{"International Journal of Business, Human and Social Sciences:54999", author = "T. Saarelainen and O. Piha and P. Makkonen and J. Orkas", title = "Casting Users- Perspectives on Foundries as Suppliers", abstract = "Global competition is tightening and companies have
to think how to remain competitive. The main aim of this paper is to
discuss how Finnish foundries will remain competitive. To fulfil the
aim, we conducted interviews in nine companies using castings and
analysed buyer–supplier relationships, current competitive
advantages of Finnish foundries and customer perspectives on how
Finnish foundries remain competitive. We found that the customerfoundry
relationship is still closer to traditional subcontracting than
partnering and general image of foundries is negative. Current
competitive advantages of Finnish foundries include designing
cooperation, proximity and flexibility. Casting users state that
Finnish foundries should sell their know-how and services instead of
their capacity, concentrate on prototype, single and short series
castings and supply ready-to-install cast components directly to
customers- assembly lines.", keywords = "Buyer-supplier relationship, casting, competitiveadvantage, customer prespective.", volume = "2", number = "4", pages = "263-6", }
