Table 5.2* Delivery Information <strong>of</strong> Current Suppliers Name <strong>of</strong> Suppliers Delivery Condition Delivery Way Supplementary Item Post<strong>in</strong>g Type L<strong>and</strong> 42
Quality is <strong>the</strong> most important factor to select supplier. Table 5.1 above <strong>in</strong>dicates <strong>the</strong> suppliers <strong>and</strong> <strong>the</strong>ir <strong>in</strong>formation about <strong>the</strong> location, quality certification, environment certification, etc. All <strong>of</strong> <strong>the</strong> suppliers follow <strong>the</strong>ir st<strong>and</strong>ards, so at least <strong>the</strong> quality should satisfy <strong>the</strong> requirements <strong>of</strong> <strong>the</strong> products. In a word, <strong>in</strong> normal situation <strong>the</strong> suppliers can guarantee quality. In case a certa<strong>in</strong> supplier produces products imperfectly or <strong>the</strong> company asks for a higher quality, it is easy for <strong>the</strong> factory communicates with supplier or even br<strong>in</strong>gs <strong>the</strong>ir own technologist to <strong>the</strong> supplier’s factory s<strong>in</strong>ce all <strong>of</strong> <strong>the</strong> suppliers except one locate <strong>in</strong> Europe. There is only one supplier, who lies <strong>in</strong> India, far away from <strong>the</strong> company. If it is necessary, <strong>the</strong> company may send delegates to India or hire some permanent delegates <strong>in</strong> India <strong>and</strong> help <strong>the</strong> supplier to improve <strong>the</strong>ir technology. From <strong>the</strong> measurement <strong>of</strong> quality, all <strong>of</strong> <strong>the</strong> current suppliers can satisfy <strong>the</strong> requirements. In traditional <strong>the</strong>ory, quality is <strong>the</strong> most important selection criterion <strong>and</strong> it is followed by delivery <strong>and</strong> cost. The <strong>in</strong>formation <strong>of</strong> delivery is shown <strong>in</strong> Table 5.2. It is well known that <strong>in</strong> a similar area, <strong>the</strong> shorter <strong>the</strong> distance is, <strong>the</strong> cheaper it cost on transportation. Although <strong>the</strong> suppliers pay <strong>the</strong> transportation fee, <strong>the</strong> company should consider it as well because <strong>the</strong> transportation cost is more or less counted <strong>in</strong>to <strong>the</strong> price <strong>of</strong> products. From Table 5.2, all <strong>of</strong> <strong>the</strong> suppliers except <strong>the</strong> supplier locate <strong>in</strong> Denmark <strong>and</strong> India ask DHL deliver <strong>the</strong>ir productions. The cost could not have very huge difference. For <strong>the</strong> Indian supplier <strong>the</strong> cost is 17,000 SEK per truck (transport by l<strong>and</strong>). If productions transported by <strong>the</strong> waterway <strong>the</strong> cost will much lower with a longer lead time. But <strong>the</strong>re is a benefit for <strong>the</strong> Indian supplier that <strong>the</strong> salary <strong>the</strong>re is much cheaper than <strong>in</strong> Europe. Consider<strong>in</strong>g this factor, <strong>the</strong> total cost may be similar or even lower than suppliers locate <strong>in</strong> Europe. Beside <strong>of</strong> this, it can be as a support center to <strong>the</strong> Asian market. Customers <strong>in</strong> Asia can get a better technology support <strong>in</strong> this way <strong>the</strong>. In fact this is also one <strong>of</strong> <strong>the</strong> reasons that more <strong>and</strong> more global enterprises <strong>in</strong>vest <strong>in</strong> Asia dur<strong>in</strong>g recently years. As discussed <strong>in</strong> section 5.1, supplier capabilities are one <strong>of</strong> important measurement <strong>in</strong> <strong>the</strong> global circumstance. This can be evaluated by three views co-design capabilities, cost reduction capabilities, <strong>and</strong> technical skills. In respect that Dulm<strong>in</strong> <strong>and</strong> M<strong>in</strong><strong>in</strong>no (2003) def<strong>in</strong>e <strong>the</strong> co-design criteria as supplier’s effort with<strong>in</strong> <strong>the</strong> project team (Araz & Ozkarahan, 2007). First <strong>of</strong> all, <strong>the</strong> research focuses on <strong>the</strong> co-design capabilities. The company does not have any plan to <strong>in</strong>vest R & D department <strong>in</strong> India so far, though <strong>the</strong>re locates its fur<strong>the</strong>st supplier. It plays a role only as a manufacturer. But it cannot be concluded that this supplier’s co-design capability is worse than o<strong>the</strong>r suppliers. German companies are always well known for <strong>the</strong>ir advanced technology, high quality <strong>and</strong> <strong>the</strong> very positive attitude dur<strong>in</strong>g work, as well as seek<strong>in</strong>g for greater perfection. Therefore, <strong>in</strong> <strong>the</strong> field <strong>of</strong> technology, <strong>the</strong> German suppliers hold an advantage to some extent. Regard<strong>in</strong>g <strong>the</strong> cost reduction capabilities, more detail <strong>in</strong>formation is needed <strong>in</strong> order to discuss from this aspect. Based on <strong>the</strong> discussion around <strong>the</strong> supplier capabilities from different views, German suppliers are <strong>in</strong> some range better than <strong>the</strong> o<strong>the</strong>rs. But this cannot be considered as a compar<strong>in</strong>g result 43