Managing supply chain in the context of SMEs: a collaborative and customized partnership with the suppliers as the key for success

Abstract

Purpose -The purpose of this paper is to highlight the efforts of a Spanish SME, Bodega Pirineos, to combine technology and a customized strategy in communication management with its suppliers. This is extremely important because of the necessity to adapt its supply system to the characteristics of its micro-suppliers, which are key trade partners of the firm. Design/methodology/approach -The approach used was a case study. Findings -The case study suggests how firms must adapt their supply relationships both with suppliers and with the environment. The paper shows that technology is not always enough. Firms need to understand their partners and to communicate with them. Research limitations/implications -This paper is based on a specific case study. Therefore, its recommendations may be successfully applied to other products in different settings and in other sectors. Practical implications -The ideas contained in this case study can help supply chain managers to reflect on the necessity of understanding their strategic suppliers. Communication between a company and its suppliers is important for improving the efficiency of its supplying management. A proper management of business-to-business communication flow may guarantee the achievement of the necessary inputs and the meeting of the required standards for its products. Understanding why and how Bodega Pirineos customizes communications flows with its micro-suppliers will help both managers and researchers to reflect on the idea that communication needs comprehension more than technological intensity. Originality/value -The special characteristics of small and medium-sized enterprises (SMEs) seem to recommend strategies adapted to their economic and human resources. The paper highlights a successful strategy based on the SME context. It includes both the firm's and their most representative suppliers' perspective.

The impact of effectuation on small firm buying decisions

“…Small firms use supplier adaptiveness to manage uncertainty and risks created by buying decisions (Bordonaba-Juste & Cambra-Fierro, 2009;Morrissey & Pittaway, 2006). Uncertainty reduces the ability to plan and increases the need for reactive purchasing, thus requiring suppliers to accommodate last minute orders, offer faster delivery, and have sufficient technical and logistical resources to support the small firm owner-manager (Beekman & Robinson, 2004;Ellegaard, 2009).…”

“…IMP tradition conceptualises a dyadic relationship between buyers and sellers, with the success of the firm being significantly related to both its customer and supplier relationships (Bordonaba-Juste & Cambra-Fierro, 2009;Snehota & Hakansson, 1995;Turnbull, Ford, & Cunningham, 1996). IMP-related studies indicate an average relationship length of over twelve years (Hakansson, Ford, Gadde, Snehota, & Waluszewski, 2009).…”

Unleashing Corporate Social Responsibility Communication for Small Businesses in the Digital Era

“…However, SMEs possess distinctive characteristics of informality (Russo & Perrini, 2010), the processes which are used to trigger employee involvement in such enterprises may need to be identified against other factors which may be relevant to particular organizational contexts. For instance, the nature of their small social setting can provide them with an opportunity for enhanced flows of communication, more face-to-face involvement and flexibility in managing human resources (Bordonaba-Juste & Cambra Fierro, 2009). The smaller firms and their practices are usually portrayed contextually, subjectively and/or in interpretational ways (Camilleri, 2015).…”

A Conceptual Model for Understanding the Outcomes of Buyer-supplier Relationships in Supply Chains

“…Coordination of relationships has to be done in such a manner that the interests of both parties are satisfied. This exercise is a challenge for improving supply chain competitiveness (Bordonaba-Juste & Cambra-Fierro, 2009). Lambert and Schwieterman (2012) have identified it is important for the buyer to make any relationship specific decisions in the interest of both the firm and the supplier.…”