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1 – 10 of over 5000Juliano Afonso Tessaro, Rainer Harms and Holger Schiele
This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers.
Abstract
Purpose
This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers.
Design/methodology/approach
The authors use a two-phase exploratory approach with semistructured interviews and a World Café. In total, 20 startup purchasers and suppliers participated. It is an international study with participants from eight countries (Belgium, Brazil, France, Germany, Hungary, The Netherlands, the UK and the USA).
Findings
The authors find that startups organize the purchasing function in five ways: partial outsourcing, transactional-oriented, strategic only, outsourced purchasing and full department. Each type has advantages and disadvantages regarding operative excellence. The authors identify type-specific antecedents to operative excellence: forecasting, payment habits, ordering process, contact accessibility and quick decision-making.
Research limitations/implications
The value of this paper is that it offers entrepreneurs a framework to organize startup purchasing activities, including outsourcing options. Furthermore, it provides theoretical contributions that expand the topic of purchasing and supply organization and operative excellence to the startup context.
Originality/value
The value of this paper is that, to the best of the authors’ knowledge, it is the first to explore purchasing organization and operative excellence in startups.
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Alistair Brandon-Jones and Desiree Knoppen
The purpose of this paper is to report on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on…
Abstract
Purpose
The purpose of this paper is to report on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. The authors also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms.
Design/methodology/approach
The authors test hypotheses using structural equation modeling of survey data from 309 manufacturing and service firms.
Findings
From a dynamic capability perspective, the analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. The authors also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from the data, the authors explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in operations management (OM) research.
Originality/value
The research offers a number of theoretical and managerial contributions, including being one of a relative few examples of empirical assessment of dynamic capability development and deployment; examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; assessing the contingency effect of firm type for dynamic capabilities; and uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.
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Adam J. Brubakken, John M. Dickens, Jason Anderson and William Cunningham
This paper aims to explore effective supply chain principles, through the theory of transaction cost economics, as measures to improve current contingency pharmaceutical item…
Abstract
Purpose
This paper aims to explore effective supply chain principles, through the theory of transaction cost economics, as measures to improve current contingency pharmaceutical item shortfalls in the Air Force Medical Service (AFMS) Contingency Pharmaceutical Programme.
Design/methodology/approach
In this research, AFMS contingency pharmaceutical data was collected from various databases, including the Joint Medical Asset Repository, Medical Contingency Requirements Workflow and the Medical Requirements List. Through the methodology of cost-benefit analysis, alternative sourcing and fulfilment practices are evaluated.
Findings
The findings of this research indicate that the application of centralized purchasing principles, in an effort to leverage prime vendor contract fill rates for shortage items, can lead to 12%–17% increases in pharmaceutical material availability across the programme.
Originality/value
This research clearly shows that consolidating demand for shortage items across Active Duty War Reserve Material assemblages, though applications of centralized purchasing principles that leverage prime vendor contract fill rates, can lead to substantial increases in material availability at costs that justify the calculated benefits.
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The purpose of this study is to develop and validate the business streamlining (BS) model proposed in 2017.
Abstract
Purpose
The purpose of this study is to develop and validate the business streamlining (BS) model proposed in 2017.
Design/methodology/approach
This study/paper develops and validates the qualitatively generated BS model, a conceptual model of service sourcing relationships, by testing it quantitatively. A survey was sent to chief exective officers, chief purchasing officers or facility managers in 764 private or public companies in Sweden with an annual turnover exceeding € 10m. The categories were tested and analyzed by means of factor analysis.
Findings
The BS model for managing service sourcing processes was confirmed to be significant overall, meaning that it is applicable irrespective of service sourcing context. The efficiency pursuing (EP) was found to have an interlinking role that calls for a revision of the BS model. Furthermore, the four categories tended to load pairwise.
Research limitations/implications
Although this cross-sectional study confirms the relevance of the BS model for managing service-sourcing processes, further studies should examine both the relative significance of its categories in different service-sourcing contexts and why the four main categories tend to pair.
Practical implications
The results support that the model is flexible and adaptable to a wide range of service-sourcing circumstances. Irrespective of the relative complexity of facility management (FM) sourcing processes, the categories can be adapted to fit the service sourcing context. Thus, it can be used as a tool to analyze and facilitate strategic decision-making.
Originality/value
The paper validates that the BS model can represent the dynamics of different service-sourcing processes, regardless of the complexity of the context.
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Priscila Laczynski de Souza Miguel and Andrea Lago da Silva
This paper aims to investigate how purchasing organizations implement supplier diversity (SD) initiatives over time.
Abstract
Purpose
This paper aims to investigate how purchasing organizations implement supplier diversity (SD) initiatives over time.
Design/methodology/approach
A multiple case study approach was conducted. Data were collected through in-depth interviews with participants from purchasing organizations, intermediary organizations and diverse suppliers.
Findings
The research suggests that the SD journey encompasses three different, but interrelated stages before full implementation is achieved: structuring, operation and adaptation. The findings also provide evidence that SD implementation in Brazil is highly influenced by the lack of a consistent knowledge base and the lack of legitimized intermediary organizations.
Research limitations/implications
Using a temporal approach to understand how different practices suggested by the literature have been managed by practitioners over time, this study contributes to the understanding of the path to effective SD implementation and how intra- and interorganizational context influences this journey.
Practical implications
By identifying which practices should be adopted during different phases of SD implementation and proposing ways to overcome some of the inherent challenges, managers can better plan and allocate resources for the adoption of a successful SD initiative.
Social implications
This research demonstrates how organizations can promote diversity and reduce social and economic inequalities by buying from diverse suppliers.
Originality/value
Using a temporal approach, the research empirically investigates how different purchasing organizations have implemented and managed the known practices and dealt with the challenges faced when trying to adopt SD.
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Barbara Gaudenzi, George A. Zsidisin and Roberta Pellegrino
Firms can choose from an array of approaches for reducing the detrimental financial effects caused by unfavorable fluctuations in commodity prices. The purpose of this paper is to…
Abstract
Purpose
Firms can choose from an array of approaches for reducing the detrimental financial effects caused by unfavorable fluctuations in commodity prices. The purpose of this paper is to provide guidance for effectively estimating the financial effects of mitigating commodity price risk volatility (CPV) in supply chain management decisions.
Design/methodology/approach
This paper adopts two prominent and complementary methodologies, namely, total cost of ownership (TCO and real options valuation (ROV), to illustrate how commodity price risk mitigation strategies can be analyzed with respect to their effect on costs and performance. The paper provides insights through a case study to demonstrate the application of these methods together and establish the benefits and challenges associated with their implementation.
Findings
The paper illustrates advantages and disadvantages of TCO and ROV and how these approaches can be adopted together to contribute to effective purchasing decisions. Supply chain flexibility is a key capability but requires investments. Holistically measuring the financial effects of flexibility investments is imperative for gaining executive management support in mitigating commodity price volatility.
Research limitations/implications
This study can provide supply chain professionals with useful guidance for measuring the costs and benefits related to developing strategies for mitigating commodity price volatility. TCO provides a focus on the costs associated with the commodity purchasing process, and ROV enables the aggregation of all the costs and benefits associated with the use of the strategy and synthesizes them into the net value estimate.
Originality/value
The paper provides a comparison of different but complementary approaches, specifically TCO and ROV, for analyzing the effectiveness of CPV risk mitigation decisions. In addition, these two methods allow supply chain professionals to evaluate and control the financial effects of CPV risk, particularly the impact of mitigation on firm’s cash flows.
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Anni-Kaisa Kähkönen and Katrina Lintukangas
This paper investigates how sustainability requirements modify supply strategies at different levels in the food industry companies. The paper integrates single supply decisions…
Abstract
Purpose
This paper investigates how sustainability requirements modify supply strategies at different levels in the food industry companies. The paper integrates single supply decisions into firm-level supply strategy and views supply strategy as one coherent strategy in which the decision-making is based on the values and principles of a firm.
Design/methodology/approach
The paper captures the decade of change and studies the renewal of supply strategy by utilising two qualitative data sets with a ten years of difference. The data contain 41 interviews from a retailer and 5 of its food supplier companies.
Findings
Results confirm that a decade ago only minor attention was channelled towards sustainability whereas today sustainability is a key driver behind supply decisions and supply strategies because firms need to respond to sustainability requirements and challenges. The study presents a framework for analysing different levels (firm, category and supply market levels) of changes and sustainability requirements faced by food companies and their supply strategies.
Originality/value
Previously, sustainability has rarely been connected to firm-level supply strategy. This study presents the supply strategy elements that were important for Finnish food industry companies over a decade ago and matches these elements to the needs of today’s firms. As a result, the study incorporates the concept of sustainability with the supply strategy frameworks.
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Ismail Abdi Changalima, Ismail Juma Ismail and Alban Dismas Mchopa
This study aims to examine the role of supplier selection and supplier monitoring in public procurement efficiency in terms of cost reduction in Tanzania.
Abstract
Purpose
This study aims to examine the role of supplier selection and supplier monitoring in public procurement efficiency in terms of cost reduction in Tanzania.
Design/methodology/approach
A structured questionnaire was used to collect cross-sectional survey data from 179 public procuring entities in Tanzania. Structural equation modelling (SEM) was used to analyse the collected data.
Findings
The findings revealed that supplier selection and supplier monitoring are positive and significant predictors of public procurement efficiency in terms of cost reduction.
Research limitations/implications
This study was conducted in Tanzanian public procurement contexts, so generalisations should be made with caution. Also, this study collected cross-sectional data; other studies may consider longitudinal data.
Practical implications
This study provides procurement practitioners with insights into selecting the proper suppliers and embracing supplier monitoring to achieve procurement efficiency in terms of cost reduction.
Originality/value
This study examines the effects of supplier selection and supplier monitoring on procurement cost reduction as a measure of public procurement efficiency in the Tanzanian context. Consequently, it provides empirical evidence of supplier management practices in the public procurement context.
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