Purchasing's Role in Supply Chain Management

Abstract

The concept and importance of supply chain management (SCM) has been introduced and described at length in the literature. Several mostly conceptual definitions of SCM were found. To classify these multiple definitions and extend SCM to include a process orientation a conceptual model of SCM evolution was developed. This research proposes that SCM is an evolving concept with individual firms at different stages in their adoption of the concept. In its most advanced form SCM is not a subset of logistics but is a broad strategy which cuts across business processes both within the firm and through the channels required to reach the customer and involves the firm's suppliers. Thus SCM as a concept is organization‐wide; not logistics‐specific. An exploratory study of purchasing professionals was performed and it was determined that their definitions of SCM focused on developing relations with suppliers including partnerships. SCM provided purchasers multiple benefits including improved supplier coordination. This improved coordination resulted in greater commitment to long‐term supplier relations, with a focus on reducing cost to the buying organization.

Citation

Giunipero, L.C. and Brand, R.R. (1996), "Purchasing's Role in Supply Chain Management", The International Journal of Logistics Management, Vol. 7 No. 1, pp. 29-38. https://doi.org/10.1108/09574099610805412