A Composite Process for Establishing and Continuously Maintaining End-to-End Visibility in Multi-Tier Supplier Network Systems

December 28, 2013 Posted by admin

Joel Jolayemi, Festus Olorunniwo, Chunxing Fan, and Xiaoming Li
Department of Business Administration, Tennessee State University, Nashville TN USA

Abstract
We develop a composite process for establishing and continuously maintaining end-to-end visibility in multiple multi-tier supplier network systems. The composite process is made up of: (1) the dig-down and shovel-up procedure for mapping and developing critical supplier network paths, (2) the dig-down and shovel-up procedure for establishing the visibility of tier suppliers in all critical supplier network paths, and (3) the dig-down and shovel-up procedure for using scorecard for evaluating every critical tier supplier in multi-tier supplier network systems. The steps to be followed in applying each of these procedures are developed and presented together with an illustrative flow chart. A list of information items that can be collected, transmitted, shared, and stored during the applications of the composite process is also developed. We also develop a list of follow-up actions and decisions that can be taken after establishing the visibility of tier suppliers and after each scorecard evaluation cycle. Furthermore, an outline of the procedure by which decision support system can be used for effectively and efficiently sharing, transmitting, storing, and accessing information during the applications of each of the procedures of our composite process is developed. Additionally, we do a critical review of the current approaches used in some industries for engendering tier supplier visibility. To the best of our knowledge, the composite process and its constituent procedures are the first and best of their types as tools for engendering tier supplier visibility. They are devoid of all the shortcomings of the current industry approaches.

Keywords: Critical supplier network path, critical tier suppliers, dig-down-and-shovel-up procedure, industry’s approaches, scorecard, supplier relationship management.

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