Supply chain flexibility as a determinant of supplier selection

Abstract

This paper examines how buying organisations can configure their supply networks to achieve supply chain flexibility. Supply chain flexibility can be rationalised by considering two key antecedents of flexibility, sourcing and vendor flexibility. Network co-ordinators can group their suppliers under three categories, framework agreement suppliers, preferred suppliers and approved suppliers, each with different flexibility implications. It is possible to maintain a suitable level of supply chain flexibility by maintaining a pool of suppliers in each category. Case studies from the construction sector are used to explore supply chain flexibility, which include a house building contractor from the UK and six of its suppliers.