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This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/eb014616. When citing the article, please cite: Donald J. Bowersox, Phillip L. Carter, Robert M. Monczka, (1985), “Materials Logistics Management”, International Journal of Physical Distribution & Materials Management, Vol. 15 Iss: 5, pp. 27 - 35.

Competing in the mid‐to‐late 1990s will require world‐class firms to rely increasingly on their suppliers while at the same time developing more aggressive and executive supported purchasing, supply base and sourcing strategies, because suppliers′ performance is not meeting expectations of purchasers. This finding was one result of a research effort with over 100 different firms over a five‐year period to determine the importance of the supply base, current supplier performance and emerging supply base/sourcing strategies being used by leading firms to contribute to competitive advantage. It was further determined that significant opportunities exist to accelerate development of supplier capabilities and performance. Identifies and discusses continuous improvement and breakthrough supply base and sourcing strategies to achieve supply base improvement.

Evolving purchasing/sourcing strategies necessary for competitive success during the 1990s are identified. The strategies, identified by purchasing executives of leading‐edge Fortune 100 firms during field interviews and a Delphi process, reflect purchasing′s growing contribution to firms′ overall competitive performance. Also included is a discussion of supply base optimisation and total quality management at the supplier as necessary prerequisites for the implementation of increasingly sophisticated strategies which follow a progression to achieving an integrated set of purchasing strategies. There is also a discussion of the linkage between corporate and purchasing strategy.

Analysis of the organisational structures utilised to conduct international purchasing activities was undertaken at 24 multinational corporations. The majority of the corporations studied had decentralised purchasing organisations and all had corporate purchasing staffs. Four basic approaches were found: (1) totally decentralised; (2) co‐ordinated; (3) totally centralised; and (4) separate international purchasing group. Within this overall framework there were several forms of staff assistance to assist operating units effectively accomplish their international purchasing goals. This assistance included foreign buying offices, trading companies and international staff specialists. There was also a common philosophy which indicated the necessity of worldwide sourcing.

The ability to satisfy customer demands while responding to relentless competitive pressure requires creative and often complex approaches to managing a firm's supply chain. Perhaps more than any other area, executive managers increasingly believe that a concept called globalization offers the best opportunity to achieve major performance gains. One area where many companies can begin to capture the benefits of globalization is global sourcing, which involves the worldwide integration of engineering, operations, and procurement centers within the upstream portion of a firm's supply chain. Unfortunately, capturing the benefits potentially offered by globalization is often limited by a lack of understanding concerning how to pursue this important topic. To help overcome this limitation this article presents a five‐level continuum that illustrates the differences between international purchasing and global sourcing, examines the factors that are the most critical to global success, and concludes with a brief discussion of future global sourcing directions.

As China emerges as a centre of manufacturing of the world, more and more small and medium sized enterprises (SMEs) start to outsource their production and related supply chain management in China. But it is very difficult to effectively manage the international outsourcing and supply chain mainly because their limited size and resources. International outsourcing agents emerge as a potential solution pursued by many western companies. Currently it has very limited information from both practical and theoretical aspects to understand the agents and their characteristics. This paper, based on four case studies of agents in three major industrial sectors in China, introduces business models and growth paths of the international manufacturing outsourcing agents, and establishes a set of key performance indicators (KPIs) for evaluation. The paper seeks to help western SMEs and hightech startups recognize the Chinese maturing and an ideal system for implementation, and to provide theoretical insights about the agents role and characteristics in international supply networks.

A few years ago the faculty of the Graduate School of Business Administration at Michigan State University responded to a developing industry need for young people trained with an understanding of the interfaces between physical distribution, manufacturing and purchasing. In 1980 the Materials Logistics Management Programme (MLM) was established to meet this industry requirement. Students of the MLM programme have been in great demand by industry since the programme's inception. For the past two years MLM graduates have received the highest starting salaries of all MSU business graduates. This article presents an overview of the MLM philosophy that has emerged as the programme matured.

China’s economy is transforming at a brisk pace. A partially dismantled command economy and introduction of competition have fueled consumer demand for a greater selection of innovative new products in the retail market. The challenge for retail buyers is to adjust their procurement processes to respond to consumer needs in an efficient and effective manner. This study examines factors influencing buyer‐supplier relationships in a transition economy. We present a model to explain the factors driving retail buyer dependence on suppliers. We find that retailer evaluation of supplier credibility mediates the relationship between retailer perceptions of a supplier ability to add value to its business and the ability to achieve its desired goals. In part, this is due to the supplier’s market orientation. Interestingly, guanxi ties have no impact on the retailer perceptions of the supplier credibility, but have a positive affect on retailer dependence on its supplier partners.

Discusses analysis of the organizational structures utilized to conduct international purchasing activities which was undertaken at 24 multinational corporations. The majority of the corporations studied had decentral‐ ized purchasing organizations and all had corporate purchasing staffs. Four basic approaches were found: (1) totally decentralized; (2) co‐ordinated; (3) totally centralized; and (4) separate international purchasing group. Within this overall framework there were several forms of staff assistance for helping operating units effectively to accomplish their international purchasing goals. This assistance included foreign buying offices, trading companies, and international staff specialists. There was also a common philosophy which indicated the necessity of worldwide sourcing.

Analyses responses from over 700 suppliers about their relationships with one of five different manufacturing firms. Finds that co‐operation, years as supplier, and perceived dependence were the strongest predictors of the suppliers′ assessments of their business relationships with the manufacturing firms. Participation in joint programmes, ratings of the manufacturers′ quality programmes, and perceived dependence were the strongest predictors of the transfer of cost and technological information from the supplier to the buying firm. Discusses implications for companies seeking stronger relationships with their exchange partners, as well as information sharing behaviours from them.