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Effective response to RFQs and supplier development: A supplier's perspective

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  • Narasimhan, Ram
  • Talluri, Srinivas
  • Mahapatra, Santosh

Abstract

Considering multiple attributes while evaluating request for quotes (RFQs) responses from suppliers is gaining significant importance in industrial procurement. While price has traditionally been the most important factor in evaluating RFQ responses, incorporation of non-price attributes such as quality and delivery performance is becoming essential and critical. Research on multi-attribute RFQs has received significant attention in an auction format with models addressing issues relating to auction mechanism design, winner determination, and auction dynamics, primarily from a buyer's perspective. There have been few approaches, if any, that have investigated the issue of response to multi-attribute RFQs from a supplier's perspective, which is the focus of this paper. Such an approach will assist a supplier in effectively responding to RFQs, thereby maximizing the likelihood of winning future contracts. It also indirectly assists in supplier development and helps foster competition among suppliers, which benefits both the buyers and the suppliers. We develop mathematical models that address this important issue and demonstrate their usefulness through an illustrative dataset.

Suggested Citation

  • Narasimhan, Ram & Talluri, Srinivas & Mahapatra, Santosh, 2008. "Effective response to RFQs and supplier development: A supplier's perspective," International Journal of Production Economics, Elsevier, vol. 115(2), pages 461-470, October.
    • Handle: RePEc:eee:proeco:v:115:y:2008:i:2:p:461-470
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    Cited by:

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    2. Kleijnen, Jack P.C. & van Schaik, Frans D.J., 2011. "Sealed-bid auction of Netherlands mussels: Statistical analysis," International Journal of Production Economics, Elsevier, vol. 132(1), pages 154-161, July.
    3. Glock, Christoph H. & Grosse, Eric H. & Ries, Jörg M., 2017. "Reprint of “Decision support models for supplier development: Systematic literature review and research agenda”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 246-260.
    4. Pham, Long & Teich, Jeffrey & Wallenius, Hannele & Wallenius, Jyrki, 2015. "Multi-attribute online reverse auctions: Recent research trends," European Journal of Operational Research, Elsevier, vol. 242(1), pages 1-9.
    5. Alok Gupta & Stephen Parente & Pallab Sanyal, 2012. "Competitive bidding for health insurance contracts: lessons from the online HMO auctions," International Journal of Health Economics and Management, Springer, vol. 12(4), pages 303-322, December.
    6. Fu, Xiaoyong & Zhu, Qinghua & Sarkis, Joseph, 2012. "Evaluating green supplier development programs at a telecommunications systems provider," International Journal of Production Economics, Elsevier, vol. 140(1), pages 357-367.
    7. Saghiri, Soroosh & Wilding, Richard, 2021. "On the effectiveness of supplier development programs: The role of supply-side moderators," Technovation, Elsevier, vol. 103(C).

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