Delivery Reliability in Machinery and Equipment Industry: A European Study
Thomas Jasinski and
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GÃ¼nther 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
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 OEMâ€™s delivery adherence which in many cases can be traced back to suppliersâ€™ 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 supplierâ€™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.
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Persistent link: http://EconPapers.repec.org/RePEc:igg:jal000:v:3:y:2012:i:1:p:20-38
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