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Article
Publication date: 1 July 2001

Swinder Janda and Srivatsa Seshadri

The potential of the purchasing function to increase shareholder value is not well publicized and hence not widely recognized. This fact becomes self‐evident when the effect of…

8244

Abstract

The potential of the purchasing function to increase shareholder value is not well publicized and hence not widely recognized. This fact becomes self‐evident when the effect of purchasing strategies on performance is well understood. With an increasing number of organizations embracing long‐term oriented collaborative relationships, studies looking at performance implications of contemporary purchasing practices are particularly timely. Attempts to provide empirical evidence linking four purchasing strategies to two dimensions of procurement performance: effectiveness and efficiency. Results indicate that purchasing managers can enhance the effectiveness and efficiency of their purchasing efforts via cooperative negotiation with a small base of suppliers and by establishing collaborative long‐term oriented relationships with them, revealing the impressive ability of the purchasing function to enhance shareholder‐value.

Details

Journal of Business & Industrial Marketing, vol. 16 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 3 July 2017

Fu Jia, Guido Orzes, Marco Sartor and Guido Nassimbeni

The purpose of this paper is to develop a synthesised conceptual framework for global sourcing (GS) strategy and structure.

4925

Abstract

Purpose

The purpose of this paper is to develop a synthesised conceptual framework for global sourcing (GS) strategy and structure.

Design/methodology/approach

The authors adopt a systematic literature review method and analyse through content analysis techniques 52 peer-reviewed journal articles focussed on GS strategy and structure. Based on these analyses, a conceptual model is developed.

Findings

A synthesised construct of GS strategy, consisting of three dimensions, i.e., supply internationalisation, internal integration and external integration, is proposed. The GS structure construct is further broken down into structural design and control and coordination, consisting of three dimensions for each. Propositions for GS strategy, GS structure and, in particular, the relationships between them are developed for future empirical validation.

Originality/value

This is the first study which synthesises various dimensions of GS strategy and GS structure and advances/extends the theory of the strategy-structure nexus to a GS context. The conceptual model provides a comprehensive framework for future empirical work and opens avenues of research on this topic.

Details

International Journal of Operations & Production Management, vol. 37 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 12 January 2023

Guoli Wang and Chenxin Ma

Motivated by the wide application of procurement strategies in retailing, this paper aims to examine the effect of procurement strategies on decisions and profits and strategic…

Abstract

Purpose

Motivated by the wide application of procurement strategies in retailing, this paper aims to examine the effect of procurement strategies on decisions and profits and strategic inventory (SI) is considered.

Design/methodology/approach

The game-theoretic models are developed under a two-period fresh product supply chain (FSC), and consist of the mode of purchasing products only in the first period without SI (Scenario S), the mode of purchasing products in every period without SI (Scenario T) and the mode of purchasing products in every period with SI (Scenario TS).

Findings

Conducting the calculating and comparing, some major findings can be concluded. In general, two-period purchasing strategies (Scenarios T and TS) promote a higher freshness-keeping effort than the single buying strategy (Scenario S). Regarding the pricing strategy, SI and Scenario S can both contribute to obtaining a lower wholesale price, the retailer's pricing is relatively complicated and hinges on the consumer's sensitivity to freshness-keeping effort and the holding cost. Besides, comparing the sales quantity and the profit, the authors find that Scenario TS stimulates more demands and brings more profits for the manufacturer. However, Scenario TS is not the optimal selection for the reason that SI sometimes hurts the retailer and even the whole supply chain. Whereas, when the holding cost is in a certain range, Scenario TS will lead to a win-win situation.

Originality/value

The main findings of this study can give the enterprises some advice on the procurement strategies of fresh products and the decisions of pricing and the freshness-keeping effort.

Details

Kybernetes, vol. 53 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 May 2014

Ala Pazirandeh and Heidi Herlin

The purpose of this paper is to understand the impact of cooperative purchasing on buyers’ purchasing power. Purchasing in the humanitarian sector has traditionally been…

1239

Abstract

Purpose

The purpose of this paper is to understand the impact of cooperative purchasing on buyers’ purchasing power. Purchasing in the humanitarian sector has traditionally been characterized by a low level of coordination due to inter-agency competition for funding, diverging mandates and other organizational differences. Relationships with commercial suppliers have also remained arm's-length and often dormant due to high levels of uncertainty and strict public procurement rules and regulations. However, recent pushes for increased efficiency and effectiveness are driving humanitarian agencies toward cooperative purchasing – a purchasing strategy that is claimed to be highly beneficial for members of the purchasing consortium not least for its ability to increase buyers’ purchasing power. In reality, the effectiveness of the strategy in increasing purchasing power is unclear.

Design/methodology/approach

The authors study a single case of several humanitarian organizations aiming to increase their leverage in buying freight forwarding services by joining forces.

Findings

Following several incidents during the process, the cooperative purchasing initiative did not contribute to increased power in the case. It was found that in addition to increased volumes, the effect of the strategy on other sources of power such as interconnections is also of importance.

Research limitations/implications

The research is limited to the boundaries of a single case study including the perceptive view of respondents interviewed.

Practical implications

The findings of the study provide insights for organizations aiming to practice cooperative purchasing.

Originality/value

The findings of the study provide insights for organizations aiming to practice cooperative purchasing.

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…

1021

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: 1 June 1994

David J. Murphy and Michael E. Heberling

The field of environmental restoration is unique and highly complex. Thepurchasing function will be responsible for acquiring the restorationservices for much of America′s…

904

Abstract

The field of environmental restoration is unique and highly complex. The purchasing function will be responsible for acquiring the restoration services for much of America′s estimated $500 billion clean‐up. Examines the specific characteristics of these projects and discusses how the unique nature of the work affects the function performed by today′s purchasing professionals. The scope and complexity of the purchasing job is vastly increased, requiring extensive teamwork and the development of dynamic and flexible purchasing strategies to handle the increased complexity and uncertainty at contaminated sites. Examines several alternative strategies for purchasing restoration services. No one strategy will fit every restoration project. The specific characteristics and unique nature of each project, and their effects on the purchasing job, must be considered in order to develop a well co‐ordinated and innovative purchasing strategy.

Details

International Journal of Physical Distribution & Logistics Management, vol. 24 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 February 1981

David Farmer

The concept of strategy as applied to purchasing has not attracted the attention of many writers in the management field. The reasons are not difficult to find. They reflect the…

Abstract

The concept of strategy as applied to purchasing has not attracted the attention of many writers in the management field. The reasons are not difficult to find. They reflect the diminished attention paid by top management and management academics to the purchasing field as a whole. The point has been made by Ammer that top management often perceives purchasing as performing a “passive” role: “His (the purchasing manager's) performance is considered to be satisfactory (a) if he operates his department efficiently (as measured by operating costs…) and (b) if he does not antagonise the executives who really do make a direct contribution to company objectives.”

Details

International Journal of Physical Distribution & Materials Management, vol. 11 no. 2/3
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 27 April 2010

Jongkyung Park, Kitae Shin, Tai‐Woo Chang and Jinwoo Park

There have been many studies on topics related to supplier relationship management (SRM), namely purchasing strategy, supplier selection and development, and collaboration with…

18550

Abstract

Purpose

There have been many studies on topics related to supplier relationship management (SRM), namely purchasing strategy, supplier selection and development, and collaboration with suppliers. However, these studies have not suggested a solution based on an integrative concept, as they focus only on domain‐specific problems. To overcome this limitation, the purpose of this present paper is to suggest a framework for an integrative SRM system by analyzing comprehensive approaches to overall SRM functions.

Design/methodology/approach

The paper reviewed and analyzed studies related to SRM from an integrative viewpoint, proposed a framework for an integrative SRM system, and performed a case study based on the analytical hierarchy process with a field survey.

Findings

The paper expects that the proposed framework can play a major role in enhancing the efficiency and effectiveness of SRM by adopting an integrative concept because the functions of SRM are highly interrelated. Furthermore, it verifies the applicability of the framework via a case study.

Research limitations/implications

Not many approaches are available for organizing evaluators or evaluation sheets, which are used for selecting criteria, providing weight, and evaluating supplier performance, that can secure objectivity of the evaluation; thus, when applying this framework to the industry, special consideration is needed.

Practical implications

The proposed framework allows the purchasing members to scrutinize key features of SRM before and during the SRM system operation.

Originality/value

The paper provides useful knowledge about the role of SRM systems by holistically approaching SRM‐related processes while suggesting criteria and recommendations to a purchasing manager.

Details

Industrial Management & Data Systems, vol. 110 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 January 2012

Thanika Devi Juwaheer, Sharmila Pudaruth and Marie Monique Emmanuelle Noyaux

The purpose of this paper is to analyse the impact of green marketing strategies on consumer purchasing patterns in Mauritius. The present research also explores the possibility…

13137

Abstract

Purpose

The purpose of this paper is to analyse the impact of green marketing strategies on consumer purchasing patterns in Mauritius. The present research also explores the possibility of introducing greener patterns of consumption into contemporary lifestyles in the current context where green products are increasingly available.

Design/methodology/approach

This paper reviews the theory of green marketing to identify how customers are persuaded to purchase greener products. It also reports the empirical results of a consumer survey on green marketing strategies by the questionnaire method. The survey questionnaires were administered to 150 respondents visiting various hypermarkets and supermarkets. The questionnaires were processed and analysed with the statistical programme SPSS, using descriptive, correlation and factor analysis.

Findings

The findings provide some interesting clues regarding customers’ perceptions on environmental concerns and green products. Further findings suggest that most consumers have expressed a great interest in the protection of the environment and they are strongly concerned about the environment and its degradation. Hence, business executives should host workshops and seminars so as to educate customers on environmental protection and environmental‐friendly products. Results also indicated an overall positive correlation between effective green marketing strategies and customers’ purchasing patterns for green products. Therefore, there is a powerful urge for companies to promote green branding, eco‐labelling and green packaging strategies in order to encourage a greener pattern of consumption among consumers in Mauritius.

Practical implications

The paper suggests a stepping approach to consumer purchasing patterns for greener products could be exploited more within consumer groups that have strong environmental concerns and beliefs in Mauritius. The results also offer precious knowledge on the effectiveness of green marketing strategies which can assist both private and public enterprises in developing and designing appealing green products that will be favoured by customers.

Originality/value

Although green marketing has been an important research topic for several decades, hardly any research has been focused on the impact of green marketing strategies on consumer purchasing patterns in the context of developing countries. This paper has analysed the strength of environmental concerns and beliefs and has provided some insights on green marketing strategies and the various managerial implications have been fully addressed in order to favour the consumption of greener products in Mauritius.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 8 no. 1
Type: Research Article
ISSN: 2042-5961

Keywords

Article
Publication date: 16 September 2013

Marco Tieman and Maznah Che Ghazali

– The purpose of this conceptual article is to investigate the application of halal in purchasing.

5023

Abstract

Purpose

The purpose of this conceptual article is to investigate the application of halal in purchasing.

Design/methodology/approach

This article provides a discussion on the implications of halal for the purchasing function, in particular the purchasing portfolio matrix of Kraljic and the purchasing process model of van Weele.

Findings

Halal leads to stronger partnerships with suppliers (strategic and leverage products) and adopting various strategies to secure continuity of supply (bottleneck products). Therefore, conventional commodity categories in certain industries can be allocated different for halal certified products and services, resulting in possible different product and supplier strategies. Halal requirements also have impact on the purchasing process; its tactical and operational purchasing activities.

Research limitations/implications

This conceptual paper shows that halal has implications for the procurement strategy and purchasing process, key components of the procurement function. However, more empirical research is needed through case study research and focus groups to better understand the challenges and solutions surrounding the sourcing practices of halal certified companies.

Practical implications

For halal certified companies it is important to extend halal towards purchasing. Effective alignment is required between the halal policy, procurement strategy and purchasing process. A procurement organisation can progress in three stages, from viewing halal compliance as opportunity, making its supply chains halal, to making its value chain halal.

Originality/value

Purchasing is an important marketing discipline in defining the buyer supplier relationship. This study contributes to the understanding of the purchasing function in a halal supply chain and value chain. It is the first study investigating the application of halal in purchasing.

Details

Journal of Islamic Marketing, vol. 4 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

21 – 30 of over 87000