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Article
Publication date: 19 June 2017

Joakim Wikner, Jenny Bäckstrand and Eva Johansson

The integration of supply chains together with the disintegration of individual actors in the supply chain shifts the focus from actors to challenges in the interaction between…

Abstract

Purpose

The integration of supply chains together with the disintegration of individual actors in the supply chain shifts the focus from actors to challenges in the interaction between actors. This paper aims to identify risk strategies for different supplier interactions in triadic configurations to outline supply strategies.

Design/methodology/approach

Companies participating in a research project recounted the challenges they faced regarding the integration of customer order-based management and supply from a triad perspective. Six triad configurations were identified, based on the literature, resulting in three risk strategies, which were empirically illustrated in practice by the participating companies.

Findings

A key finding is that a triad perspective for a customer-differentiated approach to supplier interaction results in a material classification that highlights the circumstances in which to apply “balance efficiency”, “postpone”, “balance responsiveness” and “speculate” supply strategies.

Research limitations/implications

The research has focused on process drivers and controllability, and the results may require careful interpretation when there is a mix of standardized and customized products because further interaction differentiation may then be required.

Practical implications

The strategies developed herein provide guidelines for differentiated supplier interaction with explicit focus on triads where customer actors directly influence supplier actors. This approach highlights how outsourcing must be carefully executed when supplier actors are involved in delivery to customer orders.

Originality/value

The paper sheds new light on how customer requirements impact supplier interaction in terms of decoupling points related to both delivery strategy and control strategy. The study also presents a novel application of the Kraljic matrix in in terms of risk strategies in different triad configurations.

Details

Journal of Global Operations and Strategic Sourcing, vol. 10 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 10 May 2019

Arthur Abreu da Silva Lamenza, Tharcisio Cotta Fontainha and Adriana Leiras

The purpose of this paper is to develop a Humanitarian Purchasing Matrix to guide purchasing strategies for relief items in humanitarian operations.

Abstract

Purpose

The purpose of this paper is to develop a Humanitarian Purchasing Matrix to guide purchasing strategies for relief items in humanitarian operations.

Design/methodology/approach

The research synthesizes the structures of a Purchasing Portfolio Model and the characteristics of purchasing in humanitarian operations, validating them with academics and practitioners to develop a Humanitarian Purchasing Matrix. Then, based on the Analytic Hierarchy Process to classify the relief items in the matrix, an illustrative example is used as an empirical test for the proposed Humanitarian Purchasing Matrix.

Findings

The academic literature on purchasing in general and purchasing in humanitarian operations share some similarities in terms of “Importance of Purchasing” and “Complexity of Supply Market” dimensions. Moreover, the analysis of such criteria supports the definition of purchasing strategies for different relief items in humanitarian operations.

Practical implications

The Humanitarian Purchasing Matrix can be considered a tool/guide for professionals of humanitarian organizations in the adoption of purchasing strategies for the different relief items purchased for humanitarian operations.

Originality/value

Considering a scenario of a constant increase in the variety of relief items, the high purchasing volume and the pressure to more efficient relief operations, the research discusses the intersectionality of business purchasing models and the purchasing characteristics of humanitarian operations. Moreover, the research deliveries a tool/guide to the adoption of purchasing strategies that are composed of criteria observed in the literature and suggested by both humanitarian logistic academics and practitioners.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 9 no. 2
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 19 August 2021

Bert Paesbrugghe, Johanna Vuori and Heidi Kock

Based on insights from the buying process, the purpose of this study is to align selling firms to the buyer’s efficiency needs that are grounded on the different types of purchases

Abstract

Purpose

Based on insights from the buying process, the purpose of this study is to align selling firms to the buyer’s efficiency needs that are grounded on the different types of purchases.

Design/methodology/approach

Using thematic analysis, this study conducted 35 in-depth interviews with business-to-business buyers and salespeople on the changing buyers’ sourcing needs.

Findings

In line with buyer enablement, buyers prefer personal selling when they perceive the sales offer as highly risky for the buying organization, whereas they have a strong preference for a direct marketing approach by the selling firm when they are purchasing low-risk purchases.

Research limitations/implications

This paper is a qualitative study. Future research should collect secondary company data to validate the results.

Practical implications

This paper addresses the buyer’s sourcing needs and presents how direct marketing channels and personal selling should be balanced to increase the return on salesforce resources.

Originality/value

This is one of the first studies to examine how sales organizations can create value by facilitating the buying process. Depending on the buyer’s categorization of the sales offer, this study highlights how a choice between direct marketing or personal selling improves the buyer’s perception of the sales organization.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 11 August 2023

Timothy I. Ramjaun, Madeleine Pullman, Maneesh Kumar and Vasco Sanchez Rodrigues

This article aims to investigate collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through…

Abstract

Purpose

This article aims to investigate collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through increased efficiencies, bargaining power and economies of scale.

Design/methodology/approach

A case study approach is applied to a network of breweries that are regionally clustered. Interview data from producers, suppliers and industry experts is inductively interpreted to understand the viability, organisational impact and benefits/limitations of joint procurement activities.

Findings

The craft brewing industry follows a market place strategy of differentiation to achieve competitive advantage. This has supply chain implications that promote raw material diversity, which is in conflict with standardisation – a necessary factor for collective buying. Competition impacts information sharing and governance mechanism, while the structural factors of size asymmetry along and across the supply chain influence returns. These issues impact the potential economic benefits of collaborative procurement.

Research limitations/implications

The research propositions have been developed in a specific industry but are generalisable to other companies with a differentiation strategy, especially in the consumer packaged goods sector.

Practical implications

Enabling conditions and constraints are captured in a framework and capability matrix, which can be used by practitioners to assess industry and product feasibility for collaborative procurement.

Originality/value

Previous studies of collaborative procurement have been in the public sector amongst large organisations. This work focusses on coopetition in the context of small businesses to identify the viability and cost-benefit of this strategy.

Details

International Journal of Operations & Production Management, vol. 44 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 24 March 2020

Ayotunde Adesanya, Biao Yang, Farok Wanes Bin Iqdara and Ying Yang

The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM).

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Abstract

Purpose

The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM).

Design/methodology/approach

This study has adopted a single case study of an international tobacco company. The primary data involved semi-structured interviews with participants from the case company who are familiar with sustainable SRM in the tobacco industry and are engaging in various techniques to improve sustainability performance.

Findings

The drivers for sustainable SRM commonly identified in literature are observable within the case company. There is also clear evidence of integrating sustainability in its SRM processes. However, the perception of sustainability as a requirement to meet stringent regulations limits its scope and drive in pursuing sustainable SRM. It has also limited supplier sustainability evaluation and performance metrics. Furthermore, the findings of this paper reinforce the importance of a procurement team’s ability to work with other functional teams in implementing sustainable SRM. The findings also contribute to the emerging literature on the impact of sustainability on supplier segmentation and multi-tier supplier management.

Research limitations/implications

This study provides insight into the varying SRM methods used in the tobacco industry to ensure compliance and improve sustainability performance. However, further research is required to explore the generalisability of the findings of this study derived from a single case study.

Originality/value

The tobacco industry is an under-researched industry, particularly in terms of sustainable operations and supply chain management practices. The findings of this study seem to be relevant to those comparable industries with stringent regulations as well.

Details

Supply Chain Management: An International Journal, vol. 25 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 23 August 2021

Barbara Tip, Frederik Guido Sebastiaan Vos, Esmee Peters and Vincent Delke

Procurement professionals widely use purchasing portfolio models to tailor purchasing strategies to different product groups’ needs. However, the application of these approaches…

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Abstract

Purpose

Procurement professionals widely use purchasing portfolio models to tailor purchasing strategies to different product groups’ needs. However, the application of these approaches in hospitals and the impact of a pandemic shock remain largely unknown. This paper aims to assess hospital purchasers’ procurement strategies during the COVID-19 pandemic, the effects of factor-market rivalry (FMR) on strategies and the effectiveness of purchasing portfolio categorizations in this situation.

Design/methodology/approach

This qualitative study of hospital purchasing in the Netherlands is supported by secondary data from official government publications. Semi-structured interviews were conducted with 13 hospital purchasers at large hospitals. An interpretative approach is used to analyze the interviews and present the results.

Findings

The findings reveal that product scarcity forces purchasers to treat them as (temporary) bottleneck items at the hospital level. The strategies adopted largely aligned with expected behavior based on Kraljic’s commodity management model. Adding the FMR perspective to the model helped to further cluster crisis strategies into meaningful categories. Besides inventory management, increasing supply, reducing demand and increasing resource coordination were the other common strategies. An important finding is that purchasers and governments serve as gatekeepers in channeling FMR, thereby reducing potential harmful competition between and within hospitals.

Social implications

The devastating experience of the COVID-19 pandemic is unveiling critical weaknesses of public health-care provision in times of crisis. This study assesses the strategies hospital purchasers apply to counteract shortages in the supply chain. The findings of this study emphasize the importance of gatekeepers in times of crisis and present strategies purchasers can take to assure the supply of resources.

Originality/value

No research has been conducted on purchasing portfolio models and FMR implications for hospitals during pandemics. Therefore, the authors offer several insights: increasing the supply risk creates temporary bottleneck strategies, letting purchasers adopt a short-term perspective and emphasizing the high mobility of commodities in the Kraljic commodity matrix. Additionally, despite more collaboration uncovered in other studies regarding COVID-19, strong rivalry arose at the beginning of the pandemic, leading to increased competition and less collaboration. Given such increased FMR, procurement managers and governments become important gatekeepers to balance resource allocation during pandemics both within and between hospitals.

Details

Journal of Public Procurement, vol. 22 no. 1
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 22 January 2019

Augusto Bianchini, Andrea Benci, Marco Pellegrini and Jessica Rossi

The purpose of this paper is to provide a flexible and extensible model for the classification of suppliers, within the purchasing guidelines and market trends of an Italian small…

3356

Abstract

Purpose

The purpose of this paper is to provide a flexible and extensible model for the classification of suppliers, within the purchasing guidelines and market trends of an Italian small company, leader in the production of street lamps. The model is applied to identify critical supply chains with the final objective of lead-time reduction.

Design/methodology/approach

The model is obtained by the application of the purchasing portfolio analysis through the construction of Kraljic matrix. Profit impact and supply risk criteria are selected according to the main company requirements, and then prioritized by the analytical hierarchy process (AHP). Finally, supply chain lead-times are analyzed with Gantt diagrams.

Findings

The application of the model allows the determination of company criticalities in terms of high lead-times and of the involved suppliers. The analysis of critical suppliers positioning in the Kraljic matrix allows the definition of some possible strategies to implement for lead-time reduction.

Research limitations/implications

Purchasing portfolio analysis and Kraljic matrix are practical instruments to quickly frame company purchasing situation, but their application is not simple due to the numerous and different factors involved, especially in small and medium enterprises (SMEs), where resource are scarce and several constraints limit operations. The objective of the research is the development of a practical tool for strategic purchasing, simple and robust to be implemented in SMEs, with limited resources and access to quantitative supplier data.

Originality/value

Evaluation criteria definition is one of the most difficult phases, such as their univocal and quantitative comparison. The problem of selecting and prioritizing both quantitative and qualitative criteria for suppliers classification is overcome with the combined application of Kraljic matrix and AHP. The newly integration of the two methodologies allows the realization of a reliable and robust model for suppliers classification, which can be easily adapted to company business strategy changes.

Details

Benchmarking: An International Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 3 October 2016

Sanjaykumar R. Gangurde and Amol A. Chavan

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM…

5037

Abstract

Purpose

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM) approach.

Design/methodology/approach

A five-step approach of KPM is used to identify strategic parts. The attributes affecting impact on profit and supply risk are then identified. A structured questionnaire is prepared for each attribute. Likert scale having weights from 1 to 5 is used to select method of measurement for each response. The overall score of attributes for dimensions “supply risk” and “impact on profit” interpret the position of the part, i.e., “strategic part,” “leverage part,” “bottleneck part” or “non-critical part” in the Kraljic matrix. The part having highest impact on profit and supply risk is to be considered as strategic part for defining the purchasing strategies.

Findings

This paper outlines a practical solution to the problem of designing/defining purchasing strategies for development of supplier. Impact on profit is reduced by cost reduction and quality improvement whereas supply risk reduced by improving delivery time and suppliers profile.

Research limitations/implications

The proposed methodology is applied to a boiler industry to identify the strategic parts and focus on strategic suppliers, which are fewer in number but having larger impact on profit and supply risk. The “Body” part of ball valve assembly of the boiler is considered for the study. However, it can be extended for selecting and evaluating of suppliers strategy for other parts of the boiler. Not only boiler industry sector but also other companies also benefit from the results of this study by implementing the purchasing strategies as formulated in the KPM.

Originality/value

The Kraljic matrix has been largely used in many different industries like automobile, manufacturing, construction, oil and gas, etc., as an efficient tool for developing differentiated purchasing strategies. However, its application on parts procured by boiler industry is unknown, as well as the lack of systematical approach on criteria prioritization which is one of the key issues of the methodology. This work explores the output usefulness and its applicability on ball valve assembly projects.

Details

Benchmarking: An International Journal, vol. 23 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 2 October 2023

Ahmet Selcuk Yalcin, Huseyin Selcuk Kilic and Emre Cevikcan

The purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship…

Abstract

Purpose

The purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship model (SRM) so that the buyer company can effectively conduct its relations with its suppliers.

Design/methodology/approach

The importance weights of the criteria defining the dimensions of each model are calculated with the single-valued neutrosophic analytical hierarchy process (SVN-AHP) method. Subsequently, the derived importance weights are employed in the single-valued neutrosophic technique for order preference by similarity to ideal solution (SVN-TOPSIS) method to obtain the scores of the suppliers and their supplied items. In order to illustrate the feasibility of the proposed methodology, a case study in the machinery industry is performed with the related comparative analysis.

Findings

The implementation of SSM enables to formulate various strategies to manage suppliers taking into account the items they procure, their capabilities and performance and the supplier–buyer relationship strength. Based on the proposed strategies, it is concluded that the firm in the case study should terminate its relationship with six of its suppliers.

Originality/value

Although KPM has become the basis of purchasing strategies for various businesses, it neglects the characteristics of suppliers and the buyer–supplier relationship. In this study, KPM is integrated with the SRM approach presented by Olsen and Ellram (1997) to overcome these disadvantages of KPM. The novel integration of the two approaches enables the realization of a robust and reliable supplier classification model.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 29 July 2021

Narath Bhusiri, Ruth Banomyong, Puthipong Julagasigorn, Paitoon Varadejsatitwong and Nirpa Dhami

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes'…

Abstract

Purpose

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes' achievement targets. These situations force humanitarian aid agencies to develop new strategies for effectively managing their supplies. The purpose of this paper is to illustrate the foundation of humanitarian supply chain resilience through the development of an adapted Kraljic portfolio model.

Design/methodology/approach

Action research was used to adapt and validate the Kraljic portfolio model to the development aid context. The research team worked with a humanitarian aid agency in developing criterions and used Analytical Hierarchical Process (AHP) in weighting those key criterions.

Findings

The adapted portfolio model was able to evaluate purchases done by the aid agency by incorporating different perspectives related to the strategic importance of purchase and supply vulnerability. In particular, development aid programmes require large supplies annually. Better classification offers improved visualisation of purchases, leading to a more precise adoption of mitigation strategies and policies to minimise supply disruption risks.

Research limitations/implications

Adapting the Kraljic portfolio model is a stepping-stone to building humanitarian supply chain resilience. The proposed humanitarian supply chain resilience framework is based on the foundation that current humanitarian supply chain needs to be re-engineered. In order to re-engineer, the supply base strategy must first be revisited.

Practical implications

Many aid agencies do not have a holistic view on their purchases and commonly apply a transactional classification of purchases that only considers the consumption values. Purchasing strategies mostly focus on cost minimisation, whereas risk mitigations have been disregarded. The proposed portfolio model overcomes these drawbacks. Societal impact may be limited but development aid agencies will be able to offer more reliable aid delivery as part of their mandate.

Originality/value

The proposed portfolio model is among the first tool to guide humanitarian aid agencies to develop procurement strategies to alleviate supply disruptions and increase development aid programmes resilience.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 11 no. 4
Type: Research Article
ISSN: 2042-6747

Keywords

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