TY - JOUR
T1 - A simulation based supply partner selection decision support tool for service provision in Dell
AU - Byrne, P. J.
AU - Heavey, Cathal
AU - Blake, Paul
AU - Liston, Paul
PY - 2013
Y1 - 2013
N2 - Partner selection is an important aspect of all outsourcing processes. Traditional partner selection typically involves steps to determine the criteria for outsourcing, followed by a qualification of potential suppliers and concluding with a final selection of partner(s). Reverse auctions (RAs) have widely been used for partner selection in recent times. However, RAs, although proven successful in initial price reduction strategies for product and service provision, can suffer from reduced effectiveness as the number of executions increases. This paper illustrates Dell's experience of such diminishing returns for its outsourced after sales product repair service and presents the development of a new partner selection methodology, which incorporates a new process improvement stage to be executed in combination with the final selection phase. This new methodology is underpinned by the development of a computer based simulation supply partner selection decision support tool for service provision. The paper highlights the significant additional cost saving benefits and improvement in service achievable through the use of advanced simulation based decision supports.
AB - Partner selection is an important aspect of all outsourcing processes. Traditional partner selection typically involves steps to determine the criteria for outsourcing, followed by a qualification of potential suppliers and concluding with a final selection of partner(s). Reverse auctions (RAs) have widely been used for partner selection in recent times. However, RAs, although proven successful in initial price reduction strategies for product and service provision, can suffer from reduced effectiveness as the number of executions increases. This paper illustrates Dell's experience of such diminishing returns for its outsourced after sales product repair service and presents the development of a new partner selection methodology, which incorporates a new process improvement stage to be executed in combination with the final selection phase. This new methodology is underpinned by the development of a computer based simulation supply partner selection decision support tool for service provision. The paper highlights the significant additional cost saving benefits and improvement in service achievable through the use of advanced simulation based decision supports.
KW - After-sales services
KW - Computer based simulation
KW - Contract negotiation
KW - Reverse auctions
KW - Supplier selection
UR - http://www.scopus.com/inward/record.url?scp=84876115532&partnerID=8YFLogxK
U2 - 10.1016/j.cie.2013.01.013
DO - 10.1016/j.cie.2013.01.013
M3 - Article
AN - SCOPUS:84876115532
SN - 0360-8352
VL - 64
SP - 1033
EP - 1044
JO - Computers and Industrial Engineering
JF - Computers and Industrial Engineering
IS - 4
ER -