The Effect of Customer–Contractor Alignment in Forest Harvesting Services on Contractor Profitability and the Risk for Relationship Breakdown
نویسندگان
چکیده
In forest operations, the interface between forest companies and harvesting contractors is of special importance, considering that it is the first link in the forest industry’s supply chains. Supply operations account for a significant share of the final costs of wood products (up to 50%). This study investigates the effect of customer–contractor alignment on contractors’ profit margins and on the risk for business relationship breakdown. Alignment is empirically measured for a Swedish forest company and 74 of its harvesting contractors, who were monitored during a four-year period. Two measures of alignment are employed: (1) the customer-perceived value of the contractors’ services; and (2) the contractors’ perceived alignment with the forest company expectations. Results indicate that the two measures of alignment are largely independent from each other, and that customer-perceived value affects both contractor profitability and the risk of relationship breakdown. Conflict between the two parties and lack of trust for the customer were found to be common complaints among contractors who ceased working for the studied forest company. Consequently, customer–contractor alignment should be considered a key objective by contractors who strive for business success, and also by forest companies who wish to improve their supply chain performance.
منابع مشابه
Contractor selection in MCDM context using fuzzy AHP
Contractor selection is one of the most important problem in supply chain and itsstrongly effect on firm`s performance. Because a significant amount of auniversity`s budget assigns to construction contracts, contractor selection is animportant problem for the financial status of universities. Since Contractor selectionis a multi-criteria decision making problem (MCDM), lots of methods proposed ...
متن کاملDeveloping cooperation in discontinuous s/c relationships: a case study in the construction industry
Developing cooperation in discontinuous s/c relationships: a case study in construction industry Florence CRESPIN and Robert SALLE The aim of this paper is to identify mechanisms at play in the development of cooperation in industries characterized by a high level of purchase discontinuity. The paper concentrates on the construction industry. In the construction industry adversarial relationshi...
متن کاملارائهی الگوی انتخاب پیمانکاران با استفاده از روش ترکیبی GDEMATEL-ANP و تحلیل رابطه خاکستری با رویکرد ایمنی (مطالعه موردی در صنعت نفت)
Background and aims: In today’s business world, managers use outsourcing strategy as tool to establish competitive advantage and business capabilities in order to subcontract some activities and tasks to qualified contractors. Selecting the fittest contractor from qualified contractors can prevents waste of resource and keeps organizational resource. With regard to complexities, risk...
متن کامل(طراحی مدل نوین پشتیبانی تصمیمگیری جهت ارزیابی و انتخاب پیمانکاران عمرانی در مناقصهها (در ایران
Contractor evaluation and selection is one of the most important decision making problems that many regulations and methods have been introduced for it. In Iran, "Planning and Management Organization" is responsible for classification and prequalification of contractors and due to this responsibility, this organization edit the Contractors Classification and Prequalification Regulation regularl...
متن کاملAn Empirical Analysis to Design Enhanced Customer Lifetime Value Based on Customer Loyalty:Evidences from Iranian Banking Sector
The more a marketing paradigm evolves, the more long-term relationship with customers gains its importance. Also, the move towards a customer-centred approach to marketing, coupled with the increasing availability of customer transaction data, has led to an interest in understanding and estimating customer lifetime value (CLV). There are several researches about the CLV formulas and calculating...
متن کامل