Track: Modeling and Simulation

Abstract

This research presents a model of structural equations to evaluate the effects of capacity, financial, technological and organizational performance achieved when developing suppliers. The information was obtained from a questionnaire applied to engineers and managers working in manufacturing companies in Ciudad Juárez, Chih. Mexico already has a specific list of suppliers and collaborators; 200 completed questionnaires were obtained from approximately 50 companies. The results indicate that, when it is intended to develop existing suppliers, it is important first to measure and evaluate the technological performance that they have achieved by participating as a strategic company, and secondly, to consider organizational and capacity performance, since together all of them will directly and positively influence the financial performance obtained in companies. This referer to industrial practice, to incorporate suppliers through a supplier development program, a key factor is the assessment of the performances that they have achieved in a certain time, with the purpose that the long-term strategy between company-supplier works properly to remain competitive, especially in costs. The model presented validates the fact that when selecting suppliers to develop them, the choice and the prior evaluation of their performance in the short, medium or long term influences.This research presents a model of structural equations to evaluate the effects of capacity, financial, technological and organizational performance achieved when developing suppliers. The information was obtained from a questionnaire applied to engineers and managers working in manufacturing companies in Ciudad Juárez, Chih. Mexico already has a specific list of suppliers and collaborators; 200 completed questionnaires were obtained from approximately 50 companies. The results indicate that, when it is intended to develop existing suppliers, it is important first to measure and evaluate the technological performance that they have achieved by participating as a strategic company, and secondly, to consider organizational and capacity performance, since together all of them will directly and positively influence the financial performance obtained in companies. This referer to industrial practice, to incorporate suppliers through a supplier development program, a key factor is the assessment of the performances that they have achieved in a certain time, with the purpose that the long-term strategy between company-supplier works properly to remain competitive, especially in costs. The model presented validates the fact that when selecting suppliers to develop them, the choice and the prior evaluation of their performance in the short, medium or long term influences.