bluuebunny/crossref_metadata_2025 huggingface dataset:
Effective Cross‐Functional Sourcing Teams: Critical Success Factors
Authors: Trent Robert J. , Monczka Robert M.
Published: April 2006

It is increasingly evident that firms can benefit from a new organizational structure that features suppliers, customers, and managers from different areas crossing functional lines and moving horizontally throughout the organization. Within the procurement process, cross‐functional teams have become a major part of this new organizational structure. Simply forming and using cross‐functional sourcing teams, however, is no guarantee of improved performance. As a result, firms must plan and manage carefully how they use this type of team.

This article presents the findings and conclusions from a research project that addressed the factors impacting cross‐functional sourcing team performance. The factors critical to sourcing team success include the availability of key organizational resources, participation and involvement of selected suppliers when required, higher levels of internal and external decision‐making authority, effective team leadership, and higher levels of effort put forth on team assignments.
Just‐in‐Time: A Case Study of the Grind Behind the Glamour
Authors: Chandrashekar Ashok
Published: April 2006

Just‐in‐time (JIT) manufacturing methods can be implemented successfully only when the program is supported by intensive planning and control systems. This article presents a case study describing the type and nature of planning used by Fuji Electric, a large Japanese manufacturer. The presentation also discusses some little known facts about the methods used by the Japanese to rate and control suppliers.
Quality Function Deployment: The Role of Suppliers
Authors: Ansari A. , Modarress Batoul
Published: April 2006

Suppliers have a new and important role to play through quality function deployment (QFD), an increasingly used method of product development. QFD is based on teamwork and customer involvement from the conception stage of new product development through final delivery. The approach integrates marketing, design, engineering development, manufacturing, production, and purchasing efforts in a manner that helps manufacturers meet the new and pressing demands of the 1990s. These demands include developing and introducing successful new products in less time, at lower cost, and at higher quality than the competition.

The purpose of this article is to offer a prescriptive approach for involving potential suppliers in the product development process that focuses on their roles in the different phases of QFD. These roles were developed in part based on the authors' personal interviews and written correspondence with corporate managers of quality, engineering, and purchasing, along with one of the author's direct involvement in various new product development projects using QFD.
Assessment of the Role of Technical and Risk Evaluation Factors in Defense Source Selection Decisions
Authors: Templin Carl R. , Noffsinger Ken R.
Published: April 2006

This article explores the use of technical and risk evaluation factors in formal source selections for complex military supplies and services. It describes the process used to develop evaluation criteria for source selections when expertise and technical approach are dominant concerns in the acquisition. Data were collected from 32 Air Force source selections. Chi‐square tests and correlation values were used to assess the relationship between the application of the evaluation criteria and the source selection authority's decision. The research found that proposal ratings based on the criteria were correlated to the source selection decision in an expected and consistent way. Technical and risk evaluation factors exhibited high correlations to the award decision, while the cost factor was among the lowest. Based on the source selections studied, it appears that cost factors, and perhaps political factors, may not play the important roles in government source selections that some have claimed. At the very least, they did not appear to skew the process so as to achieve inconsistencies between the ratings and the award decisions for the source selections examined.
A Managerial Guideline for the Development and Implementation of Purchasing Partnerships
Authors: Ellram Lisa M.
Published: April 2006

The purchasing function in many United States‐based firms traditionally has maintained adversarial relationships with suppliers. As world markets become increasingly competitive, firms have discovered that close partnership relationships with important suppliers can produce managerial, technological, and financial benefits.

This article presents a guide for firms interested in developing purchasing partnerships to follow in pursuit of those relationships. While this guide has not been empirically tested, it was developed on the basis of a thorough literature review coupled with the consistent findings of the author while conducting case studies of six firms involved in successful purchasing partnerships. The article concludes by suggesting the contribution that purchasing partnerships can make to the firm as a whole, as well as to the purchasing function of the firm.
Target Pricing—A Challenge for Purchasing
Authors: Newman Richard G. , McKeller John M.
Published: April 2006

One of the most controversial aspects of purchasing operations is proving cost reductions and cost savings. Target pricing and its adjunct, target costing, solve this problem. Coming from Japan where the concept is used extensively, these tools allow the buyer to set the price of materials—and using ESI and value engineering, the target price reduces the cost of materials in the product. In addition, other areas of waste are identified and eliminated.

To reach this goal, it is necessary for the buyer to determine those areas in which price reduction must take place to meet the target without compromising the integrity of the product or the profitability for the supplier. This article defines target pricing and looks at options available to reduce product cost from the supplier. Target pricing and target costing are the concepts that operationalize the concepts of ESI, VE/VA, and partnering.
Supply Managers for the Twenty‐First Century: The Learning Imperative
Authors: Williams Alvin J.
Published: April 2006

Purchasing professionals need a learning‐based orientation to meet their future challenges successfully. Learning‐oriented supply management organizations are more adaptive and receptive to both internal and external changes. This article identifies the tenets of learning‐centered procurement teams and suggests a framework for transforming these teams into learning entities.
Negotiating Cooperative Supplier Relationships: A Planning Framework
Authors: Rognes Jorn
Published: April 2006

Win‐win negotiation and cooperative relations are popular concepts among many industrial buyers today. But companies accustomed to short‐term competitive relations with suppliers may find it difficult to adjust to the negotiation requirements of cooperative relations. If they fail to negotiate a high quality sustainable agreement, however, they may get locked into unproductive partnerships.

This article applies a negotiation perspective to the challenges of establishing value‐chain partnerships with suppliers. The author argues that prenegotiation planning is critical for the establishment of a successful partnership, and he presents a framework for such planning. The article points to critical dilemmas in negotiating complex cooperative relationships with suppliers, discusses steps in planning for such negotiations, and examines procedural issues regarding the interaction with suppliers.
Activity‐Based Costing for Purchasing Managers’ Cost and Pricing Determinations
Authors: Lere John C. , Saraph Jayant V.
Published: April 2006

Many suppliers are selectively using activity‐based costing (ABC) in their pricing determinations. Since price is often used as one of the major criteria when purchasing professionals select suppliers, understanding ABC and its use in pricing are important to purchasing managers.

This article discusses how ABC differs from traditional costing (TC). These differences are illustrated through the use of an example. Finally, implications are drawn with respect to how purchasing managers might collect and use ABC data in dealing with suppliers.
A Structured Method for Applying Purchasing Cost Management Tools
Authors: Ellram Lisa M.
Published: April 2006

Managing the cost of purchased goods and services continues to be one of the hottest issues in purchasing today. It has received a great deal of attention by top management, and in the press in periodicals such as Fortune and Harvard Business Review. As stated recently in Fortune magazine, “Simple fact: when the goal is boosting profits by dramatically lowering costs, a business should look first to what it buys.”1 The Fortune article goes on to give a number of suggestions for reducing costs, such as leveraging your buying power; committing to a handful of suppliers; and working together to reduce total cost. These broad suggestions are helpful in providing direction, yet they are not specific enough to help purchasers actually analyze the situations they may face.

While buyers know that effectively managing the costs of purchases is important, there are many approaches to cost management. Pressure to complete a particular buy may prevent purchasers from using the right tool for the job.

This article proposes a methodology to help purchasers determine what type of cost analysis technique should be applied to a particular purchase by:

1. Developing a framework for classifying purchases

2. Discussing which cost analysis techniques best support each classification in the framework

3. Focusing on strategic cost management techniques
Is Purchasing Really Strategic?
Authors: Carter Joseph R. , Narasimhan Ram
Published: April 2006

Does purchasing have a role in corporate strategy? The central theme that has emerged from an examination of prior research in the areas of competitive strategy and purchasing strategy is that the image and status of purchasing is driven by the contribution of the purchasing function to overall corporate performance and to the performance of other functions. Does purchasing performance impact corporate performance? Is purchasing really strategic? This article documents the impact purchasing decisions have on corporate performance. There are strategic “levers” that purchasing can use to enhance the chances for firm success. The implication is that any firm can successfully develop and implement purchasing strategies. A firm's efforts at purchasing strategy development can be successful. Purchasing is indeed strategic.
The Industrial Buyer and the Robinson‐Patman Act
Authors: Pinkerton Richard L. , Kemp Deborah J.
Published: April 2006

Industrial Buyer. I like this supplier and want him to have my business, but I received a lower bid from a secondary supplier. I suspect the suppliers are engaging in price competition. Should I tell the favored supplier that I want him to have my business, but that his price is no longer low enough? If I do, will I get sued for knowingly engaging in price discrimination?

Lawyer. Tell your favored supplier that you have a lower bid from a second suppler. Invite another bid from your favored supplier. Do not tell him the specifics of the other bid. You could be sued for engaging in price discrimination, but the second supplier would not win the lawsuit. Do you really want to risk the expense of having to defend a lawsuit brought under the Robinson‐Patman Act?

This article explores the underlying answer to this question, along with a more general assessment of the significance of the Robinson‐Patman Act for the typical industrial buyer.
Status and Recognition of the Purchasing Function in the Electronics Industry
Authors: Pearson John N. , Ellram Lisa M. , Carter Craig R.
Published: April 2006

This article examines the status and recognition of the purchasing function in the electronics industry. Issues also investigated are the perception of purchasing as a strategic or a clerical function; recognition as an equal partner on the top management team; access to information and participation in decision making; and the nature of other functions’ reporting relationships to purchasing. The results confirm previous research that indicates purchasing is viewed increasingly as a strategic contributor to the firm. Further, there appears to be evidence that purchasing participates as a team member in many decision‐making processes of the firm. However, the purchasing function still lacks the status and recognition that should be accorded to a critical strategic function.
Can a Negotiation Support System Help a Purchasing Manager?
Authors: Perkins William C. , Hershauer James C. , Foroughi Abbas , Delaney Michael M.
Published: April 2006

The computer has become a useful tool for purchasing managers in administering contracts and in daily operations. Additionally, computer support for contract negotiations may also be provided. This article investigates the use of a computerized Negotiation Support System, or NSS, as an aid to a purchasing manager, and to the sales manager with whom he or she is dealing, in a typical industrial buying/selling negotiation. After reviewing the results of three prior studies using student subjects, the article reports on an empirical study — using purchasing managers as subjects — designed to test the effectiveness of an early version of an NSS. In this laboratory test of the NSS, the managers arrived at better contracts (higher joint outcomes and more balanced contracts) in less time when provided with the NSS. From the results of the study and the comments of NSS users, a number of implications for practicing purchasing managers are identified. The article concludes with suggestions about which organizations should develop an NSS and how they should begin the development effort.
Understanding and Evaluating Cross‐Functional Sourcing Team Leadership
Authors: Trent Robert J.
Published: April 2006

As firms experience relentless pressure to innovate and improve, many are responding by creating organizational structures that promote cross‐functional and cross‐boundary communication, coordination, and collaboration. Because most firms studied expect to use teams to support future procurement and sourcing decision making, it is important to understand how to best manage the cross‐functional sourcing team process. Unfortunately, researchers who study teams rarely reach the same conclusions about the factors affecting team success. There is one variable, however, that most researchers agree consistently affects team success — the effectiveness of the formal team leader.

The purpose of this article is to examine the critical role that team leaders play and the challenges they face in a cross‐functional sourcing team environment. The final section details three assessment scales used to help identify a sourcing team leader's behavioral style and ability to satisfy critical leadership requirements.
Countertrade's Impact on the Supply Function
Authors: Forker Laura B.
Published: April 2006

During the 1970s and 1980s, many second‐ and third‐world countries accumulated enormous external debt. For countries facing convertible currency shortages or borrowing constraints, countertrade provided a means of circumventing structural trade imbalances. Due to intense global competition and the secrecy surrounding countertrade, little data is available regarding the scale and scope of this trading practice. This article updates the findings of a government survey performed in the mid‐1980s and compares several parallel statistics from the earlier and later surveys. The combined information traces a pattern of American involvement in countertrade during the past decade.

This study also examines countertrade's impact on the supply function by considering the placement of reciprocally purchased goods — a task most frequently assigned to purchasing. The influence that counter‐traders’ experiences may have on their choice of disposal options is explored through analysis of the more recent survey's data. The findings indicate that a majority of U.S. firms use reciprocal goods in their own operations. A number of future research directions are suggested as a follow‐on to this study to provide additional detail regarding how countertrade affects the supply function and the supply base.
Motivating the Purchasing Professional
Authors: Pagell Mark , Das Ajay , Curkovic Sime , Easton Liane
Published: April 2006

Recent interest in purchasing as a key strategic function has led to numerous articles that describe programs or technologies that can be implemented to help a firm achieve a competitive advantage through the sourcing function. What is lacking is work that focuses on the people who will implement these programs. This article deals with motivating the purchasing professional to acquire and use the skills necessary to make the function a strategic asset to the firm. A model for motivating skill acquisition and use through measurement systems, compensation systems, and the interaction of both is developed and then empirically tested.
Integrating Product Life Cycle and Purchasing Strategies
Authors: Birou Laura , Fawcett Stanley E. , Magnan Gregory M.
Published: April 2006

IN BRIEF

This article presents a model for the strategic alignment of functional strategies using the Product Life Cycle (PLC) as the “common strategic denominator.” The model serves to fill a void in the strategic literature citing a need for the integration of different functional‐level strategies into a holistic business strategy.

The results of the purchasing portion of a three‐part empirical investigation involving purchasing, manufacturing, and logistics professionals is presented in this paper. The results are based on the input of 126 purchasing executives who served to identify the strategic importance of the PLC in purchasing planning as well as when to implement specific purchasing strategies for the most effective results during stages of the PLC.
The Meaning and Origin of Trust in Buyer‐Supplier Relationships
Authors: Smeltzer Larry R.
Published: April 2006

IN BRIEF

Little attention has been given to the specific nature and origin of trust in buyer‐supplier relationships. As a result, this article presents both a literature‐based definition of trust and a definition according to purchasing managers. The conclusion is that a trustworthy buyer or supplier is one who: does not act in a purely self‐serving manner, accurately discloses relevant information when requested, does not change supply specifications, and generally acts in an ethical manner. However, knowing a definition of trust without understanding the origins of trust is of limited value. Therefore, identity, image, and reputation as the origins of trust are discussed. Next, six managerial and research issues or questions are presented: 1. How do we evaluate or measure trust? 2. What are the antecedents of trusting behavior? 3. What is the relationship between individual and organizational trust? 4. What precisely creates or destroys trust? 5. How much trust is required for an effective relationship? 6. What is the role of trust over time as the relationship changes?

These six questions were addressed during interviews with purchasing managers. Managers had a difficult time relating to these questions, leading to the conclusion that more research and managerial attention should be given to trust and these related questions.
Purchasing Professional Services: The Case of Advertising Agencies
Authors: West Douglas C.
Published: April 2006

IN BRIEF

Purchasing managers are often tasked with the purchase of such professional services as legal, engineering, computing, and advertising. This article focuses on the purchase of advertising services. The main conclusion is that purchasing managers should play a role in relation to the efficiency of the advertising agency rather than the effectiveness a commercial contribution rather than a marketing contribution. They should collaborate with marketing as part of the team selecting, evaluating, and monitoring agencies. Purchasing's role may also extend to involvement with the advertising agency suppliers, depending on the relationship between purchasing and marketing/advertising, the nature of the commitment with the agency, and the expertise of the purchasing managers. Benefits to both the buying firm and its agencies from such involvement are identified and recommendations are offered for purchasing professionals involved in the team purchasing of advertising services.
MRO Partnerships: A Case Study
Authors: Bechtel Christian , Patterson James L.
Published: April 2006

IN BRIEF

Despite the increased attention procurement managers are giving MRO purchasing, success in managing MRO items has been limited. Increased awareness of MRO purchasing can be traced, in part, to the increased use of blanket contracts and procurement cards. However, blanket contracts and procurement cards address only one cost area of MRO purchasing, ordering, and processing costs. While firms save money through increased processing and ordering efficiencies, larger product application cost‐saving opportunities in MRO purchasing lie in improving stocking, receiving, distribution, and searching activities.

This article discusses how Bethlehem Steel's Burns Harbor plant developed and implemented a new MRO purchasing strategy which achieved dramatic cost reductions in all MRO cost areas. By creating MRO partnerships, Bethlehem Steel decreased all of its key MRO cost drivers, increased internal and external customer service, and used MRO supplier expertise to create ongoing reduction efforts.
Process Oriented Supplier Development: Building the Capability for Change
Authors: Hartley Janet L. , Jones Gwen E.
Published: April 2006

IN BRIEF

Many companies have achieved impressive improvements in quality, delivery, and costs using results‐oriented supplier development. With this approach, a team led by purchasing professionals makes technical changes such as simplifying work flows, standardizing work processes, and reducing set‐up times in a supplier's operations. However, after such supplier development efforts, suppliers often return to “business as usual,” failing to make further improvements on their own. This article first describes the benefits and shortcomings of results‐oriented supplier development. Next, building upon successful cases of supplier development and research in change management, this article describes process‐oriented supplier development practices which are more effective in building a supplier's capability for improvement. Finally, this article discusses the commitment of resources necessary for this approach to supplier development.
Voice of the Customer: The Impact on Customer Satisfaction
Authors: Stank Theodore P. , Daugherty Patricia J. , Ellinger Alexander E.
Published: April 2006

IN BRIEF

A recent survey of buyers in the personal products industry focused on their level of satisfaction with distribution service. Further research examined the role of voice of the customer, i.e., input provided by the buyers, in the buyer‐seller relationship. It was hypothesized that listening to the voice of the customer would be related to greater customer satisfaction. Information provided by customers should offer sellers guidance for improving their overall service. Only limited support was found. However, the use of personal meetings with customers was found to impact customer satisfaction to a greater extent than the use of formal feedback mechanisms (surveys or telephone calls). Based upon this survey, it appears as though firms are not fully exploiting the potential to be gained from listening to customers.
Collaboration In Customer‐Supplier Relationships: Strategy, Operations and the Function of Rhetoric
Authors: Burnes Bernard , New Steve
Published: April 2006

IN BRIEF

This article describes a case study undertaken as part of a wider project concerning the emergence of collaborative customer‐supplier relationships in the United Kingdom, and looks at the Rover Group automobile manufacturer and component supplier TRW. It illustrates how effective integration at the operating level does not of itself remove other areas of potential conflict, particularly in the area of costs and pricing. This may mean that the rhetoric of “partnerships” may require some degree of decoding. However, the case also illustrates that such issues can be overcome with appropriate managerial attention.
Supplier Development: Current Practices and Outcomes
Authors: Krause Daniel R.
Published: April 2006

This article presents the results of a survey on supplier development. The research indicates that buying firms engage in a variety of supplier development activities. The outcomes and benefits from supplier development, which are determined from a range of measures, e.g., measures of incoming defects, on‐time deliveries, and perceptions of the buyer‐supplier relationship, are reported. Respondents were generally positive about the outcomes of their supplier development efforts, but their perceptions could have been more favorable. The research also suggests that supplier development activities vary in terms of the level of buying firm commitment to the supplier development effort.
Make‐or‐Buy Alternatives in Plant Disposition Strategies
Authors: Johnson P. Fraser , Leenders Michiel R.
Published: April 2006

Government regulations, competitive pressures, and public opinion have forced firms to reexamine their residual disposal activities. Properly implemented, disposal programs offer the advantages of lower costs and opportunities for strategic partnerships with raw material suppliers. Responsibility for this activity is usually given to the procurement function, forcing supply managers to develop knowledge of environmental legislation, scrap markets, and disposal outlets. This article presents research about plant disposal practices, focusing on a single residual—ferrous scrap. This study explored factors that influenced scrap disposal strategies and found that volume played a dominant role. The volume‐based strategies identified differed with respect to how plants structured relationships with intermediaries, resulting in a range of generator‐processor dependency levels. In addition to volume, a range of both internal and external factors were found to influence plant disposal requirements. Ultimately, the development of appropriate disposition strategies required an understanding of total disposal costs. A conceptual framework is developed, highlighting the complexities associated with implementing effective and efficient disposal programs.
Internationalizing Procurement: Determinants of Countertrade Involvement
Authors: Forker Laura B.
Published: April 2006

As protectionist governments around the world have toppled, free trade zones have opened up, and trade barriers have dissolved through either multilateral or free trade agreements, greater numbers of enterprises have looked to foreign markets as sources of supply. At the end of the 1980s, the growth in worldwide sourcing was accompanied by a similar expansion in unconventional trade financing mechanisms, the most prominent of which was countertrade. American companies have historically been reluctant to get involved in countertrade due to its high perceived and real risks. This research examines data from the peak period of countertrade growth to identify likely determinants of business unit countertrade involvement. The impact of global horizontal direct investment on future countertrade activity and the contribution that purchasing can make in developing organizational capabilities to fulfill international trade obligations are discussed.
Cost Plus What? The Importance of Accurate Profit Calculations in Cost‐Plus Agreements
Authors: Connor Peter E. , Hopkins Robert K.
Published: April 2006

As cost‐plus contracts increase in frequency and complexity, purchasing professionals are required to exercise greater degrees of sophistication in understanding applicable production costs as well as negotiating the appropriate profit suppliers will earn over the life of an agreement. While the need to evaluate and eliminate nonvalue added costs remains a critical component of sustainable supplier relationships, the procurement professional must equally insist on objective definitions of, and clear measures for, supplier returns. By using discounted cash flow analysis, procurement professionals can quantify after‐tax returns commensurate with the supplier's risk in a cost‐plus contract.
The Context, Organizational Design, and Performance of JIT Buying Versus Non‐JIT Buying Firms
Authors: Germain Richard , Droge Cornelia
Published: April 2006

IN BRIEF

A comparison of Just‐In‐Time (JIT) versus non‐JIT buying firms was made on context, organizational, and performance dimensions. Of nine context variables examined, four distinguish JIT from non‐JIT buyers: these relate to uncertainty in manufacturing and marketing processes and to product turnover. Many differences were found in the organizational design variables. JIT buyers engage in far more extensive performance measurement (on internal, benchmark, and supplier dimensions). They are more likely to have written purchasing mission statements and written purchasing strategic plans. They are more likely to rely on cross‐functional teams to formulate purchasing strategy and to decentralize line‐operating decision making. Material handling, market research, and transportation scheduling specialists are more likely to be employed by JIT buying firms than by non‐JIT buying firms. Finally, differences were also found on four performance variables. JIT buying firms perform better in terms of weeks of inventory on hand, market share growth, return on investment, and profit.
The Strategic Value of Buyer‐Supplier Relationships
Authors: Zaheer Akbar , McEvily Bill , Perrone Vincenzo
Published: April 2006

This research investigates the determinants and outcomes of trust in buyer‐supplier relationships. Trust in a partner organization and in the individual counterpart are examined from both the buyers' and suppliers' perspectives. The method in which organizational and interorganizational management practices influence trust in buyer‐supplier relations and how trust at two levels relates to supplier performance are discussed. Data for the statistical analysis was gathered from a survey of 99 purchasing managers and their lead suppliers.
Internal Service Quality in Purchasing: An Empirical Study
Authors: Stanley Linda L. , Wisner Joel D.
Published: April 2006

Many organizations consider the implementation of total quality management a requirement to maintain a competitive advantage. In addition to the existing research that addresses general principles of total quality management, an emerging body of literature has attempted to define internal service quality. However, little research to date has empirically examined internal service quality among departments. The purpose of this study was to explore internal service quality from the purchasing department's point of view. The results indicated that (1) internal service quality initiatives could be adopted to a greater extent within U.S. organizations, (2) purchasing considered communication with their internal customers to be less effective with their internal customers than with their internal suppliers, (3) while supplier management activities are viewed as necessary for the overall improvement of service and product quality, relatively few of these activities have been actively implemented, and (4) although purchasing managers viewed themselves as providing good, to very good, service quality to their internal customers, they were critical of their internal suppliers.
Executive and Purchasing Leadership in Purchasing Change Initiatives
Authors: Smeltzer Larry R.
Published: April 2006

Case analysis was used to investigate executive and purchasing leadership in purchasing change initiatives. The strongest demonstration of CEO support was hiring a new Chief Purchasing Officer (CPO) and/or publicly supporting an organizational restructuring. The primary findings regarding the new CPOs were they: (1) were not promoted from within purchasing in the same organization, (2) had a zest for change, (3) possessed a clear, articulated vision for change, (4) had a passion for the importance of purchasing, and (5) were well educated but had limited formal education in purchasing. The interaction of the CPO and CEO was also analyzed. The most important conclusion was that the CPO must be ready with a clear vision for purchasing to take advantage of the CEO's support. Finally, the analysis showed that it was not necessary for the CEO to have previous purchasing experience to support purchasing change efforts.
The Effect of Manufacturing Technology on Purchase Contracts
Authors: Buvik Arnt
Published: April 2006

Traditionally, modest formalization of purchasing relationships is expected to appear in order‐based industries with flexible and unpredictable production scheduling. Drawing on contingency theory (CT) and transaction cost economics (TCE), this article analyzes the effect of the interplay between buyers' manufacturing technology and economic interfirm dependence on formalized purchase contracting in 172 industrial buyer‐seller relationships.

When asset specificity is low, formalization of purchase contracting diminishes as the buyer's manufacturing technology becomes more flexible and unpredictable. This pattern is reversed under conditions of high supplier‐specific assets for which the formalization of purchasing contracting is significantly increased as the buyers' manufacturing technology becomes more flexible.
Purchasing Education on the Internet
Authors: Ellram Lisa M. , Easton Liane
Published: April 2006

As distance learning and the Internet have become popular, teaching courses over the Internet will become common. Preparing and teaching a distance learning class over the Internet is considerably different than teaching in the traditional classroom. This article presents a case study in developing and conducting a purchasing class over the Internet. It describes how class information, lectures, and class discussions were conveyed to the student on a Web site and how homework and individual correspondence were transmitted by e‐mail. Additionally, the differences between traditional classrooms and Internet‐based courses are discussed, and general information on distance learning is presented.
Comparison of Quality Management Practices: Across the Supply Chain and Industries
Authors: Choi Thomas Y. , Rungtusanatham Manus
Published: April 2006

This article reports the findings of an exploratory study that compares the quality management practices of manufacturing firms at different levels of the supply chain and across different industries. Firms are first separated into three levels in the supply chain — final assemblers, top‐tier suppliers, and tertiary‐tier suppliers. The study also separates firms into three industry groups — automotive, electronics, and others. A mailed survey was used to collect the data. The analysis found no statistical difference in the level of quality management practices across the supply chain. This contradicts the general speculation that tertiary‐tier suppliers have fallen behind final assemblers and top‐tier suppliers in quality management practices. However, the results did reveal an industry effect regarding strategic quality planning. The manufacturers in the automotive industrywere more active in strategic quality planning than their counterparts in the electronics industry.
Purchasing from Minority Business Enterprises: Key Success Factors
Authors: Carter Craig R. , Auskalnis Richard J. , Ketchum Carol L
Published: April 2006

There is a growing realization among purchasing managers that sourcing from minority business enterprises (MBEs) results in more than just window dressing for public relations. MBE suppliers bring value and innovation to the supplier base. Furthermore, sourcing from MBE suppliers can help strengthen the economic outlook of the overall minority community. The authors used a combination of case studies and a mail survey to identify the key factors that can result in successful MBE purchasing programs.
The Impact of Tacit Knowledge on Purchasing Decisions
Authors: Giunipero Larry , Dawley David , Anthony William P.
Published: April 2006

This research examines the use of tacit knowledge in making purchasing decisions. A model is developed which combines the use of both formal data and tacit knowledge in the decision‐making process. A survey of 97 purchasing managers revealed that almost equal amounts of formal data and tacit knowledge were used in making buying decisions. The use of both types of information in decision making appears to be related to the concept of bounded rationality.
Internal Relationships and Activities Associated with High Levels of Purchasing Service Quality
Authors: Wisner Joel D. , Stanley Linda L.
Published: April 2006

This article presents findings from a comprehensive survey concerning internal service quality in a wide variety of U.S. companies. The objectives of this article were to further develop the internal service quality model and to study the internal customer‐supplier relationships of companies with high levels of purchasing service quality. Purchasing managers were asked to assess and describe both incoming and outgoing internal service quality and associated activities for their purchasing departments and the organization as a whole. The respondents were also asked to assess the service quality provided to their firm's external customers. This information was used to summarize performance in each area for respondents with high levels of internal service quality, from both an internal supplier and internal customer perspective. Comparative information is provided for firms having low‐to‐moderate levels of internal service quality.
The Impact of Supplier Selection Criteria and Supplier Involvement on Manufacturing Performance
Authors: Vonderembse Mark A. , Tracey Michael
Published: April 2006

This research investigates the extent to which supplier selection criteria and supplier involvement are used by manufacturers. It also provides support for the claim that firms employing these practices have enhanced supplier and manufacturing performance. Most firms regard the use of supplier selection criteria as an important part of their supplier selection process. Supplier involvement in product design activities and continuous improvement efforts is much lower than the use of supplier selection criteria. The product quality and product performance dimensions of supplier selection criteria plus all of the dimensions of supplier involvement and supplier performance are positively correlated with manufacturing performance. When the sample is divided into high and low manufacturing performers, all the elements of supplier performance and supplier involvement and all but one of the four supplier selection criteria are significantly better for the high performing group than the low performing group. These results lend support to the statement that implementing supplier selection criteria and involving suppliers has a positive impact on performance.
The Benefits of Multiple Boundary Spanning Roles in Purchasing
Authors: Hallenbeck George S. , Hautaluoma Jacob E. , Bates Scott C.
Published: April 2006

Previous research has focused on purchasing managers’ experience with role stressors and the negative effect of stress on job attitudes and performance. The potential benefits of having multiple responsibilities and a diverse role set have been overlooked. This study explored the relationship between purchasing managers’ involvement in multiple boundary spanning roles and their perceptions of positive social outcomes related to work. The relationship of these social benefits to job satisfaction was also evaluated. The relationships were analyzed using structural equation modeling. The results indicated positive relationships between each variable in the model. The implications for recruitment, supervision, and job design are discussed.
Supplier Selection and Order Quantity Allocation: A Comprehensive Model
Authors: Jayaraman Vaidyanathan , Srivastava Rajesh , Benton W. C.
Published: April 2006

In today's competitive environment, it is extremely difficult to successfully produce high quality, low cost products without considering a satisfactory set of suppliers. A useful approach to ensure the reliability of a manufacturer's supply stream is to follow a multiple sourcing policy. Mathematical programming techniques lend themselves nicely by providing optimal solutions to several instances of the problem. However, a recent review of supply selection methods (Weber et al. 1991) identified very few articles that have proposed mathematical programming techniques to analyze supplier selection decisions. Given the economic importance and inherent complexity associated with the supplier selection problem, this article proposes a mixed integer programming approach to solve the supplier selection program. The modelSUPPSEL (Supplier Selection) simultaneously decides the set of suppliers and order quantity allocations among them.
Outsourcing in the Chemical and Automotive Industries: Choice or Competitive Imperative?
Authors: Collins Robert , Bechler Kimberly
Published: April 2006

The outsourcing of manufacturing is a strategic option which in some cases represents a choice and in others a competitive imperative. In this article, the authors explore the approaches of sample firms in the chemical and automotive industries to the outsourcing of manufacturing. Based on clinical research done with companies participating in IMD's Manufacturing 2000 project, the authors conclude that the outsourcing of manufacturing is not a panacea, but rather a strategic choice, which is business dependent. In the cases where it is pursued, the need for firms to focus on the managerial challenges of selecting appropriate partners for the long term and building and nurturing a mutually rewarding relationship is stressed. Setting and realizing an aggressive improvement agenda is required by each partner to make the necessary transformations to sustain the relationship in the long term.
Supplier Development from the Minority Supplier's Perspective
Authors: Krause Daniel R. , Ragatz Gary L. , Hughley Shane
Published: April 2006

This article examines the perspectives of minority‐owned suppliers regarding their relationship with a large industrial manufacturing firm in the midwest region of the United States. The firm has a well‐established minority‐owned supplier development program. This study focused on assessing the effectiveness of the company's minority supplier development program, in terms of the outcomes of the program for minority suppliers, and examining potential barriers to success. Data were collected using a survey questionnaire mailed to minority‐owned suppliers. The suppliers’ responses were grouped on the basis of three variables: (1) sales volume, (2) percentage of the supplier's sales to the firm, and (3) length of the supplier's business relationship with the firm. Responses were analyzed to determine whether supplier size, sales percentage, or relationship length were significantly related to the perceived quality of the relationship.
Precursors of Unethical Behavior in Global Supplier Management
Authors: Carter Craig R.
Published: April 2006

A review of the literature suggests that unethical practices in buyer‐supplier relationships are related to two broad categories of antecedents: (1) internal, organizational characteristics and (2) external, interorganizational characteristics. The author examines how these two sets of factors affect unethical behavior that may occur in the relationships of U.S. purchasing managers and their non‐U.S. suppliers, through a combination of focus group and individual interviews and a mail survey that employs a dyadic methodology.
Managing Residual Disposition: Achieving Economy, Environmental Responsibility, and Competitive Advantage Using the Supply Chain Framework
Authors: Young Richard R.
Published: April 2006

Regulations have limited the options and increased the cost of disposing of unwanted materials, products, and equipment. This has increased the pressure on purchasers to develop innovative approaches to managing residual disposition. Good management requires not only a clearer understanding of the origins of these items and the options available, but an understanding of how costs are incurred and how they may be reduced across the supply chain. Based on several in‐depth case studies at firms in the furniture, commercial printing, electronics, and pharmaceutical industries, this research discovered that firms generate residuals at multiple functional points preceding manufacturing and that their disposition decisionmaking is affected by one or a combination of three drivers: intrinsic value, overwhelming volume of material, and regulatory compliance. Moreover, most organizations neither consider nor track disposal costs, thereby obscuring both the issue as well as potential solutions.
World‐Class Purchasing Skills: An Empirical Investigation
Authors: Giunipero Larry C. , Pearcy Dawn H.
Published: April 2006

Changes in the purchasing function and the environment in which it operates significantly affect the ideal skill set required fora world‐class purchasing professional. Although much has been written in the popular press about the skills required of a purchasing/supply management professional, very little academic research has been undertaken to examine this topic. The objectives of this study were to ascertain which skills are the most important to the function and to develop a concise set of factors to describe a comprehensive set of skills required of a world‐class purchasing/supply management professional One hundred thirty‐six purchasing professionals rated the importance of 30 purchasing skills. The skills were subsequently analyzed via exploratory factor analysis. Strategy, process management, teaming, decisionmaking, behavioral, negotiation, and quantitative skills were identified as key skill dimensions.
Business‐to‐Business Online Purchasing: Suppliers' Impact on Buyers' Adoption and Usage Intent
Authors: Deeter‐Schmelz Dawn R. , Bizzari Aric , Graham Rebecca , Howdyshell Catherine
Published: April 2006

Experts predict that the Internet will become the primary low‐cost network for business‐to‐business commerce transactions. Both buying and selling firms can benefit from the cost savings and productivity improvements associated with online purchasing. Although more organizational buyers are turning to the Internet for purchasing activities, challenges exist as some buying firms harbor concerns. To assist suppliers in the development of effective strategies aimed at increasing online purchasing among professional buyers, a study was designed to investigate the impact of supplier support on buyers' adoption of the Internet for corporate‐related purchasing activities. Path analysis was used to examine the relationships among four variables: supplier support, communication convenience, buyer adoption behavior, and Internet usage intent. The results suggest that suppliers play a critical role in the adoption of this new innovation. By offering encouragement, guidance (e.g., training), and incentives (e.g., price discounts) and by stressing convenience of use, suppliers can increase the likelihood that buyers will adopt and use this new method for purchasing.