The cooperation between suppliers and an agro-industrial slaughterhouse: a measurement tool

Alécio, João Cuareli; Neuenfeldt Júnior, Alvaro; Siluk, Julio; Mendes, Angélica Alebrant; Oliveira, Bruna Rigon de; Mello, Mário

doi:10.1590/0103-6513.20200069

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Research Article • Prod. 31 • 2021 • https://doi.org/10.1590/0103-6513.20200069 copy

The cooperation between suppliers and an agro-industrial slaughterhouse: a measurement tool

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Paper aims

To identify factors to measure the cooperation between an agro-industrial pork slaughterhouse cooperative and input suppliers.

Originality

A performance measurement tool applicable in real-life industry practices related to input suppliers, based on critical success factors.

Research method

The performance measurement tool was calculated based on the analytic hierarchy process (AHP) procedure, constituted by two essential elements, the critical success factors and the key performance indicators, organized in a hierarchical structure. The key performance indicators are used to detail the critical success factors, measuring the supplier’s performance in relation to specific cooperation characteristics.

Main findings

In general, 77% of suppliers are fully or potentially cooperative with an established performance in risk sharing and information sharing factors. For the remaining 23% of suppliers classified as partially cooperatives, suggestions were proposed for changes to be implemented which improve their cooperation level performance. Finally, a direct relation between a low proportion of input discards and a established cooperative performance between suppliers and the analyzed agro-industrial pork cooperative was not verified.

Implications for theory and practice

To provide a performance measurement tool developed with methodological rigor to be used by researchers and agro-industrial pork slaughterhouse cooperative managers to improve the Brazilian pork slaughterhouse supply chain context.

Keywords
Agro-industrial slaughterhouse; Supply chain management; Critical success factors; Key performance indicators; Analytic hierarchy process

CSF	Description	Authors
Information sharing	Create bonds of trust to establish a culture of information sharing between the agro-industrial slaughterhouse cooperative and suppliers, improving supply chain coordination, reducing costs in processes, stocks, and logistics, increasing competitiveness.	Cao et al. (2010)Cao, M., Vonderembse, M. A., Zhang, Q., & Ragu-Nathan, T. S. (2010). Supply chain collaboration: conceptualisation and instrument development. International Journal of Production Research, 48(22), 6613-6635. http://dx.doi.org/10.1080/00207540903349039. http://dx.doi.org/10.1080/00207540903349... , Stank et al. (2011)Stank, T. P., Dittmann, J. P., & Autry, C. W. (2011). The new agenda for the supply chain: a synopsis and instructions for future research. International Journal of Physical Distribution & Logistics Management, 41(10), 940-955. http://dx.doi.org/10.1108/09600031111185220. http://dx.doi.org/10.1108/09600031111185... , Raweewan & Ferrell Junior (2018)Raweewan, M., & Ferrell Junior, W. G. (2018). Information sharing in supply chain collaboration. Computers & Industrial Engineering, 126, 269-281. http://dx.doi.org/10.1016/j.cie.2018.09.042. http://dx.doi.org/10.1016/j.cie.2018.09....
Risk sharing	Signing contracts with clauses stipulated to the supplier to guarantee the delivery of quantity, quality, and volume of inputs contracted, where non-compliances are penalized. In return, the agro-industrial slaughterhouse cooperative takes the risk of buying a high volume of inputs and maintaining a purchasing link with the supplier for the time stipulated in the contract.	Chen et al. (2006)Chen, H., Chen, J., & Chen, Y. F. (2006). A coordination mechanism for a supply chain with demand information updating. International Journal of Production Economics, 103(1), 347-361. http://dx.doi.org/10.1016/j.ijpe.2005.09.002. http://dx.doi.org/10.1016/j.ijpe.2005.09... , Xiao & Yang (2009)Xiao, T., & Yang, D. (2009). Risk sharing and information revelation mechanism of a one-manufacturer and one-retailer supply chain facing an integrated competitor. European Journal of Operational Research, 196(3), 1076-1085. http://dx.doi.org/10.1016/j.ejor.2008.05.004. http://dx.doi.org/10.1016/j.ejor.2008.05... , Seifbarghy et al. (2015)Seifbarghy, M., Nouhi, K., & Mahmoudi, A. (2015). Contract design in a supply chain considering price and quality dependent demand with customer segmentation. International Journal of Production Economics, 167, 108-118. http://dx.doi.org/10.1016/j.ijpe.2015.05.004. http://dx.doi.org/10.1016/j.ijpe.2015.05... , Zhou et al. (2018)Zhou, C., Tang, W., & Lan, Y. (2018). Supply chain contract design of procurement and risk-sharing under random yield and asymmetric productivity information. Computers & Industrial Engineering, 126, 691-704. http://dx.doi.org/10.1016/j.cie.2018.10.022. http://dx.doi.org/10.1016/j.cie.2018.10....
Costs x quality	Meet the challenge of reducing costs without affecting the inputs’ quality, where the lack of quality generates additional costs. When the input fails, defects must be corrected. Non-conforming in the input’s quality resulting in reworks, increasing costs, and reducing the product’s added value.	Iyer et al. (2019)Iyer, K. N., Srivastava, P., & Srinivasan, M. (2019). Performance implications of lean in supply chains: Exploring the role of learning orientation and relational resources. International Journal of Production Economics, 216, 94-104. http://dx.doi.org/10.1016/j.ijpe.2019.04.012. http://dx.doi.org/10.1016/j.ijpe.2019.04...
Communication	Communication between the agro-industrial slaughterhouse cooperative and its suppliers supports the cooperation, contributing to a win-win relationship.	Vanpoucke et al. (2014)Vanpoucke, E., Vereecke, A., & Wetzels, M. (2014). Developing supplier integration capabilities for sustainable competitive advantage: a dynamic capabilities approach. Journal of Operations Management, 32(7-8), 446-461. http://dx.doi.org/10.1016/j.jom.2014.09.004. http://dx.doi.org/10.1016/j.jom.2014.09....

CSF	KPIs
Information sharing	1. Efficiency in sharing pertinent information about the products to be produced by the agro-industrial slaughterhouse cooperative.
	2. Sharing information about future line-out products.
	3. A clear description of the supply expectations.
	4. Supplier’s trust in exposing the necessary inputs’ confidential data.
Risk sharing	5. Delivery time meets the contracted expectations.
Risk sharing	6. Equality in the contract’s compliance between supplier and agro-industrial slaughterhouse cooperative.
Costs x quality	7. The agro-industrial slaughterhouse cooperative is receptive to the innovations proposed by the supplier.
	8. The agro-industrial slaughterhouse cooperative is open to developing improvement projects with the supplier.
	9. The agro-industrial slaughterhouse cooperative provides data to facilitate the identification of input’s non-conformities.
	10. The supplier is following the agro-industrial slaughterhouse cooperative quality policy.
	11. The supplier knows the inputs’ impacts on the production system and the agro-industrial slaughterhouse cooperative’s customers.
Communication	12. The agro-industrial slaughterhouse cooperative promotes technical visits to integrate the supplier into the production system.
	13. Communication is effective and meets the supplier’s expectations.
	14. The agro-industrial slaughterhouse cooperative meets the agreed negotiations deadlines.

Sector	Cost of discards	Proportion of discards
Cooked	U$ 1,960,106.07	55.29%
Smoked	U$ 200,501.56	15.46%
Cured	U$ 235,039.18	15.32%
Salty	U$ 170,242.72	7.04%
Fresh	U$ 235,594.33	6.16%
Refined	U$ 30,239.66	0.72%

Input	Supplier	Volume of discards	Cost of discards	Proportion of discards
Boxes	A	6,523.00 units	U$ 1,190.62	1.50%
Ribbon	B	3,117.47 m	U$ 36.46	0.40%
Boxes	C	684.00 units	U$ 95.66	0.30%
Boxes	C	713.00 units	U$ 116.65	0.80%
Boxes	C	124.00 units	U$ 35.42	0.40%
Boxes	D	645.00 units	U$ 153.72	0.90%
Packaging	E	25.50 units (x1000)	U$ 1,361.27	8.60%
Packaging	E	3.75 units (x1000)	U$ 219.67	4.40%
Packaging	E	9.02 units (x1000)	U$ 510.10	1.60%
Packaging	E	2.95 units (x1000)	U$ 143.11	7.90%
Packaging	F	21.05 units (x1000)	U$ 1,187.78	3.60%
Hangtags	G	20.27 units (x1000)	U$ 90.90	2.40%
Ribbon	H	0.68 m	U$ 0.01	0.00%
Packaging	I	7.77 units (x1000)	U$ 501.93	1.40%
Clip	J	10.85 units (x1000)	U$ 54.90	3.30%
Cord	J	32.23 units (x1000)	U$ 175.02	2.10%
Clip	J	7.81 units (x1000)	U$ 53.95	3.70%
Clip	J	58.31 units (x1000)	U$ 323.58	2.40%
Label	K	18.26 units (x1000)	U$ 691.72	6.30%
Seal	L	8.03 units (x1000)	U$ 33.74	0.30%
Cord	M	0.55 units (x1000)	U$ 3.00	1.10%
Clip	M	0.34 units (x1000)	U$ 2.33	3.30%
Clip	M	6.18 units (x1000)	U$ 39.36	3.00%
Ribbon	N	9.42 m	U$ 19.41	18.00%
Packaging	O	16.70 units (x1000)	U$ 1079.12	2.90%
Packaging	O	15.95 units (x1000)	U$ 1068.25	3.40%
Packaging	O	0.17 units (x1000)	U$ 21.14	0.50%
Gut	P	137.27 m	U$ 43.57	0.60%
Gut	P	3,231.78 m	U$ 964.61	0.50%
Gut	P	3,534.97 m	U$ 1142.39	3.40%
Packaging	Q	14.37 units (x1000)	U$ 928.53	2.50%

	Current performance ( $v'_{k p i}_{f}$ )		Suggested actions	Expected performance ( $v'_{k p i}_{f}$ )
	Supplier K	Supplier J
KPI 2	6	4	Maintain suppliers informed about possible line-out products, besides guiding to prevent delivery of not-agreed inputs.	9
KPI 4	8	4	Show that the cooperative has values based on strategic management, promoting a closer relationship with the supplier.	9
KPI 7	7	3	Attend to the supplier news and innovations to improve production processes and cooperation.	9
KPI 12	6	4	Increase the number of technical visits with suppliers, increasing interaction with the cooperative.	9

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