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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.

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.

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.

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.

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.

Purchasing has emerged as a key source of competitive advantage. This paper aims to explore how different purchasing strategies are connected to complex supply relationships and to the goal of purchasing.

The study draws on the literature on industrial network theory and industrial buying behaviour.

The contribution describes six types of purchasing strategies that firms exert. These strategies depend on the complexity of supply relationships and the buyer's purchasing goal. Conventional products and services are bought through transactional exchange relationships, whereas strategically important items are purchased through intentional supply networks.

Purchasing strategies of a firm emphasise either efficiency or effectiveness of operation. The type of exchange varies according to the nature of supply relationships: it is either transactional or relational. A key implication for managers is that they should recognise the goal of buying, the strategic importance of the object of purchasing, and choose accordingly between the different types of supplier structures.

The paper shows that firms' purchasing strategies depend on the nature of their supply relationships and the motive for purchasing. Different strategies emphasise different aspects and events that ultimately manifest themselves in the firms' business models.

The purpose of this research is to apply a simulation experiment to investigate the impact of new components purchasing and used components recovery strategies on multiple performance measures. The research compares the effectiveness of these strategies, given different levels of uncertainty for the return flow from the contingency perspective.

The experimental design is implemented using an ARENA simulation model. Simulation results are used to test the proposed research model. Multivariate analysis of variance is used for data analysis.

The results demonstrate that while a proactive purchasing strategy reduces total system cost, it also negatively affects service level. While there are some general conclusions, it is equally important to make decisions under specific business contexts.

The primary implication is that a firm has to align its purchasing strategy and recovery strategy with its business strategy. Given the tradeoff on multiple performance dimensions, the business strategy guides the selection of the appropriate purchasing and recovery strategy.

This paper demonstrates that using multiple performance measures is necessary to accurately assess cost and service trade‐offs related to a proactive purchasing strategy. Considering a wide range of circumstances, this paper suggests that the contingency perspective is a valid approach for investigating closed‐loop supply chains.

Grounded in the theory of mental budgeting, this paper aims to investigate how the regret and perfectionism of exposition attendees influences their purchasing strategy.

This research collected on-site data at a well-established specialty food exposition in China. Confirmatory factor analysis and structural equation modeling were applied to test the proposed model.

The findings confirm the effect of psychological mechanism (regret and perfectionism) on exposition attendees’ purchasing strategy as one that boosts/impairs their confidence in purchasing healthy food at the exposition. Specifically, regret and perfectionism show differential contributions to purchasing strategy dimensions. Variety seeking has a positive effect, whereas price consciousness has a negative effect, on purchase confidence.

Event organizers and exhibitors should understand attendees’ consumption-related psychological mechanism and devise effective management and marketing strategies for optimal consumption experiences at expositions. They can create an informative and worry-free experience that facilitates a pleasant thought process to reduce uncertainty in attendees’ on-site decision-making.

The current research pioneered a unique model conceptualizing the important, yet underexplored, phenomenon of purchasing mechanism in the exposition setting. Addressing the emerging interest in food expositions, to the best of the authors’ knowledge, this study is the first for examining purchasing mechanism from the perspective of mental budgeting, providing insightful knowledge about how the psychological mechanism affects exposition attendees’ pre-purchase evaluation and confidence toward purchasing healthy food at expositions.

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

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.

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.

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.

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.

The aim of this study is to investigate and examine the impact of strategic purchasing practices (SPP) on strategic-fit (SF) by analyzing the influence of SPP on purchasing involvement in business strategy formulation with path-goal theory leadership styles as moderators.

Using survey data from 320 respondents representing 64 manufacturing firms in the Middle East, the authors measure SPP, purchasing involvement, leadership styles and SF of the purchasing function with business strategy.

Building on the path-goal approach to leadership, results suggest that participative, supportive and achievement-oriented leadership (AOL) styles are pure moderators, while directive leadership style (DLS) is a quasi-moderator in boosting the relationship between SPP and strategic purchasing involvement (SPI).

Limitations of the sampling methodology and sample size restricts the scope for generalizing the hypotheses. Further, data were collected only from manufacturing companies. The paper provides managerial implications on purchasing involvement in business strategy formulation and the different roles of leadership styles.

This is the first scholarly work to examine the different leadership styles as a moderator that affects the strategic involvement and status of strategic purchasing.

The purpose of this paper is to propose a theoretically sound and empirically tested classification system composed of purchasing strategic categories as a basis for purchasing portfolio models.

An international, cross‐industry survey has been designed to assess the characteristics and corresponding strategies of the purchasing categories.

The paper operationalises the constructs derived from previous scientific contributions related to purchasing portfolio management and transaction cost economics (TCE) to empirically test the purchasing portfolio. In total, four different types of strategic categories have been identified, and distinctive competitive priorities have been found.

Managers might be able to identify different types of purchasing strategic categories, whose characteristics drive specific purchasing strategies. Longitudinal data and more extensive tests of the characteristics of each category might contribute to improving the proposed research framework.

The research overcomes some of the classical limits of purchasing portfolio models, including the absence of a theoretical and empirical basis. In particular, TCE is used to support and expand traditional purchasing portfolio approaches, and a broad empirical base is used to test such an approach.

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.

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.

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.

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.

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.

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.

This paper aims to explore how purchasing could respond to disruptive technologies by examining the assumptions underlying purchasing strategic alignment and purchasing maturity through a contingency lens.

This study uses a systematic review across purchasing maturity and purchasing strategic alignment literature. This is supplemented with exploratory case studies to include practitioners’ views.

This research demonstrates that neither purchasing maturity nor purchasing strategic alignment are suitable approaches to respond to disruptive technologies. Purchasing maturity does not allow purchasing managers to select relevant practices. It also shows no consideration of any contingencies, which practitioners highlight as important for the selection of practices. Purchasing strategic alignment includes the company strategy as a contingency but does not provide any practices to choose from. It does not include any other contextual contingencies considered important by practitioners. The findings indicate that linking the two research streams may provide a more suitable approach to responding to disruptive technologies.

This research demonstrates the requirement to develop a new approach to responding to disruptive technologies, by linking purchasing maturity and purchasing strategic alignment to contextual contingencies. This is a currently unexplored approach in academic literature, which refutes the generally accepted premise that higher maturity unilaterally supports a better positioning towards technological disruption. This research also highlights a requirement for practitioners to shift their approach to “best practices”.

This is the first research to systematically review the relationships between purchasing maturity and purchasing strategic alignment. It adds to contingency theory by suggesting that purchasing maturity models can support the achievement of strategic alignment. Also, future research directions are suggested to explore these relationships.

The aim of this paper is to present a purchasing portfolio model for determining purchasing strategy at the component level of a product to support business strategy, addressing weaknesses in the often cited Kraljic‐type models. The work draws on Fisher's model to match supply strategy to product nature. However, Fisher's model was criticised very recently by Lo and Power in this journal because it is unclear how the “leagile” option should fit into it. This paper addresses this issue.

The new portfolio model is based on the literature, particularly Fisher's seminal work. It is then applied to two case studies; an electric boiler manufacturer and an elevator manufacturer, both in South Korea. The analytic hierarchy process (AHP) is used to position purchased components in the model.

Different purchasing strategies should be assigned to different components according to their impact on the competitive priorities. As the electric boiler is a functional product, while the elevator is an innovative product, the case studies show how this can vary across the two product‐types identified by Fisher.

The new model has been tested on only two case studies, which limits the ability to generalise the findings. Future work will use the lean and agile purchasing portfolio model in research and knowledge exchange activities with other industrial partners to further develop and test its efficacy.

The new model captures the finding of Fisher and others that products should be classified as functional or innovation to determine their suitability for lean or agile supply respectively. However, this classification is extended here to the component level and with the addition of the leagile and non‐strategic supply options, and it depends on the impact a component has on the four competitive priorities; cost, quality, time and flexibility.