Benchmarking procurement functions: causes for superior performance

Abstract

Purpose

The purpose of this paper is to gain a better understanding between procurement strategy, organization, processes, methods and tools, human resources, supplier management, and overall procurement success.

Design/methodology/approach

In order to achieve the above‐mentioned results, a holistic benchmark with highly recognized companies is conducted. Applying a cohesive questionnaire of open and closed questions, the paper covers all relevant aspects of procurement functions. Regression analysis is used to identify significant correlations.

Findings

The benchmarking (BM) proved the following significant success factors for the overall procurement process: use of cross‐functional teams, high hierarchical positioning of the procurement function within the company, strong cooperation with other functions, training and development of the procurement personnel as well as supplier integration and continuous evaluation.

Practical implications

The paper provides the reader with sound evidence of how to improve the overall performance of procurement.

Originality/value

The analytical results of the research rely on statistical/mathematical methodology to substantiate qualitative BM results.

Citation

Brandmeier, R.A. and Rupp, F. (2010), "Benchmarking procurement functions: causes for superior performance", Benchmarking: An International Journal, Vol. 17 No. 1, pp. 5-26. https://doi.org/10.1108/14635771011022299