Supplier relationship management and its impacts on purchasing performance in aircraft maintenance, repair, and overhaul in Thailand

Abstract

Supplier Relationship Management (SRM) has been recognized to play an important role in improving purchasing performance. However, there is no evidence yet to prove this application in the aircraft maintenance, repair, and overhaul (MRO) industry in Thailand. This paper studied SRM which are arm’s-length SRM and cooperative SRM practices, and their impacts on purchasing performance in the aircraft MRO industry of Thailand by using Delphi Technique. Data are collected from in-depth interviews, and by means of a questionnaire. Sample group of this research are 20 specialists who involved with purchasing processes in aircraft MRO. The results show that cooperative SRM improves purchasing performance in all aspects, while arm’s-length SRM only improves purchasing performance in reducing sales price.