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Delivery Reliability in Machinery and Equipment Industry: A European Study

Günther Schuh, Volker Stich, Tobias Brosze, Till Potente, Thomas Jasinski and Stefan Cuber
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Günther Schuh: RWTH Aachen University, Germany
Volker Stich: RWTH Aachen University, Germany
Tobias Brosze: RWTH Aachen University, Germany
Till Potente: RWTH Aachen University, Germany
Thomas Jasinski: RWTH Aachen University, Germany
Stefan Cuber: RWTH Aachen University, Germany

International Journal of Applied Logistics (IJAL), 2012, vol. 3, issue 1, pages 20-38

Abstract: European machinery and equipment manufacturers face multiple logistical challenges in their daily business. Interacting in complex non-hierarchical production networks and thus living with the consequences of a lack of transparency, temporal instability, or imbalanced share of market power finally leads to an inadequate OEM’s delivery adherence which in many cases can be traced back to suppliers’ late deliveries. This paper presents a framework for improving delivery reliability in non-hierarchical production networks by applying market mechanisms. Knowing the financial consequences of a supplier’s belated delivery provides useful information which can be applied in terms of financial incentives. The framework is supported by the results of a study which has been conducted by the authors throughout German, Spanish, and Italian machine tool manufacturers and their suppliers.

Date: 2012
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