bluuebunny/crossref_metadata_2025 huggingface dataset:
Purchasing Efficiency and Staffing Benchmarks: A County Government Study
Authors: McCampbell Atefeh S. , Slaich Lucy Light
Published: April 2006

This article discusses the unique challenges of purchasing performance measurement, with an emphasis on the public sector. The impact of centralization and consolidation on purchasing efficiency is explored. Purchasing benchmarks for large U.S. counties are developed in the areas of mean staff size, mean population per buyer, average annual dollar volume committed per professional staff member, and cost per dollar obligated. A relationship between adequate staffing and cost‐efficient performance is observed.
Supplier Partnering: Case Study Experiences
Authors: Akacum A. , Dale B.G.
Published: April 2006

This article describes the findings of a study that examined the current partnership sourcing practices of 11 companies residing in the Trafford Park industrial area in Greater Manchester, U.K. All the companies studied were interested in exploring how they could develop further the concept of partnering with their customers and suppliers. A number of aspects of partnering to which attention needed to be given were identified, including the key items of integrated design, open‐book accounting, and the sharing of risks and benefits. It was also noted that forming supplier associations would be a good means of developing the ideals of partnering and disseminating information on the best practices.
Purchasing's Interaction with Customers: The Effects on Customer Satisfaction—A Case Study
Authors: Rossler Paul E. , Hirsz A.B.
Published: April 2006

A significant number of purchasing organizations find themselves working to improve both their image and customer satisfaction. This article describes the experiences of a purchasing organization, in one division of an oil company, that had tried unsuccessfully for ten years to improve customer satisfaction by measuring performance and improving supplier reliability. Management then employed a somewhat broader approach to improving purchasing performance in the area of capital equipment purchases: interacting more closely with internal customers.

To evaluate the effects of this approach on customer satisfaction, upper‐ and middle‐level managers in purchasing's two largest internal customer organizations, Engineering and Maintenance, were surveyed—first in the Northern Division, where both past efforts and the current intervention had been implemented, and in a similar division, the Southern Division, where only past efforts had been applied. The results indicate that interacting more closely with customers can improve customer perceptions of purchasing's responsiveness and professionalism, but that technical knowledge may play a greater role in improving perceptions of the value added by purchasing. The experiences of this purchasing organization provide general insights on approaches to perceived performance improvement.
Is There Such a Thing as a Free Lunch?
Authors: McCracken Gail K. , Callahan Thomas J.
Published: April 2006

Analysis of data from 179 respondents indicated that the concept of the business lunch is alive and well among both purchasing and sales professionals. Neither the purchasing nor sales professionals believed that there was a possibility for a high level of ethical conflict in a majority of the business lunch scenarios they were asked to consider. However, there were significant differences between the sales and purchasing people when asked about the legitimate purposes of the lunch. Moreover, female purchasers were more likely to disagree with the social purposes of the business lunch than were their male counterparts. Implications of these findings and suggestions for future research are discussed.
Use of ISO 9000 and Baldrige Award Criteria in Supplier Quality Evaluation
Authors: Curkovic Sime , Handfield Robert
Published: April 2006

Purchasing and materials managers are increasingly concerned with ISO 9000 registration, both as a prerequisite for participation in global markets and in supplier selection. The ISO 9000 guidelines link certification requirements to quality‐related corporate issues, and can be used as a screening tool for companies when assessing a supplier's process conformance. However, many important areas of quality management are not addressed by ISO 9000. The Malcolm Baldrige Award criteria, on the other hand, provide a comprehensive framework within which to conduct an evaluation of suppliers’ quality systems.

The similarities and differences between the two frameworks are compared in a map that is validated using survey data from 314 North American organizations. The results suggest that ISO 9000 registration criteria fail to measure key areas of quality management, including strategic planning, employee involvement, quality results, competitive benchmarking, and customer satisfaction. Based on these results, the implications for the design of supplier quality measurement and evaluation systems are discussed.
The Case Against Purchasing Partnerships
Authors: Ramsay John
Published: April 2006

Partnerships are frequently presented in purchasing literature as a generally applicable, universally desirable solution to the problem of sourcing strategy choice. This article argues that although this conclusion may be valid for large corporations, it is inappropriate for the majority of smaller companies that make up the bulk of activity in any economy. On the contrary, it is suggested that the effort to form partnerships will frequently be met by supplier indifference or resistance, and the strategy itself is high risk, high cost, and necessarily involves purchasers in an undesirable net loss of power.
Purchasing's Preparedness for ISO 9000 International Quality Standards
Authors: Naidu G.M. , Prasad V. Kanti , Kleimenhagen Arno
Published: April 2006

International quality standards such as the ISO 9000 series are fast becoming a strategic consideration as more firms compete in the global marketplace. This article examines ISO 9000 from the perspective of the purchasing function. As international competition becomes more intense, cost, quality, and competitiveness become linked. Thus, purchasing becomes a key player as a firm develops its competitive strategy.

Midwestern purchasing executives were asked for their views on issues related to source assessment, quality, and ISO 9000. The results indicate that the purchasing and supply function is likely to have a strategic impact on a firm's globalization process. Consequently, purchasing executives in such firms must be prepared to commit to the ISO 9000 series of standards.
Purchasing's Involvement in Time‐Based Strategies
Authors: Hendrick Thomas E. , Carter Craig R. , Siferd Sue P.
Published: April 2006

The authors find several gaps between purchaasing's current use and involvement in time‐based strategies and what purchasing professionals think their use and involvement should be. These gaps may be due to the fact that purchasing personnel have just begun to use these techniques in a process of continual improvement. Purchasing plays a critical role in time‐based strategies, since efficiencies gained here will ripple through the remainder of the processes involved in total cycle time. Finally, the authors offer benchmarks that organizations can use to gauge their current use of time‐based techniques and strategies.
The Effects of EDI on Industrial Buyer‐Seller Relationships: A Network Perspective
Authors: Marcussen Carl H.
Published: April 2006

Based on two British case studies involving 25 companies, of which six industrial wholesalers are central actors, this research concluded that, overall, EDI strengthens industrial buyer‐seller relationships. Actors who use EDI in their role as purchasers do in fact experience the advantages normally associated with the use of EDI. But from the suppliers' point of view, the perceived strengthening is unrelated to how and how much EDI is used. Many suppliers have implemented EDI largely to retain their customers, but frequently gain no direct financial benefits from the use of EDI. Thus, the benefits of EDI are not equally distributed. Purchasers of the industrial products studied have not yet made EDI a condition for doing business. At the same time, most suppliers tend to overestimate the amount of additional business they are getting by implementing EDI.

The article concludes with a discussion of the managerial implications of these findings – and four strategies for EDI implementation are proposed.
Supplier Relationships and the Trade Secrets Dilemma
Authors: Budden Michael C. , Jones Michael A. , Budden Connie B.
Published: April 2006

Increasingly, purchasing managers are finding that they are gatekeepers of valuable information for which adequate security must be provided. As relationships between purchasers and suppliers become increasingly interdependent through partnering arrangements, the need to document and provide adequate security increases. The authors believe that with recent trends in supplier relations, purchasing managers must take a proactive approach to provide for the safety of their firms' proprietary information.

This article explores the trade‐secrets problem facing managers, and suggests a program for reducing the risks of information misappropriation.
Empowering the Purchasing Function: Moving to Team Decisions
Authors: Giunipero Larry C. , Vogt Judith F.
Published: April 2006

IN BRIEF

This article describes the nature of empowerment and the implications for empowerment and the purchasing function. The article argues that purchasing's position in organizations can allow it to both model and implement empowerment and thus serve as a foundation for culture change and/or Total Quality Management (TQM) applications. The article then reports research findings about the state of empowerment in purchasing. Research found that purchasers: (1) demonstrated a high degree of readiness for incorporating empowerment in their work settings, (2) have adopted many TQM and continuous empowerment techniques in their organizations, and (3) are working as part of teams in their organizations. Finally, the research demonstrates that those who believed that management perceived the function as a strategic/profit‐oriented role were more accepting of empowerment and teaming.
Case‐Based Reasoning Systems in Purchasing: Applications and Development
Authors: Cook Robert Lorin
Published: April 2006

IN BRIEF

Cased‐based reasoning (CBR) systems are artificial intelligence software programs that show significant promise for improving the effectiveness and efficiency of purchasing management decision making. This article describes CBR systems technology, presents several purchasing CBR system applications that offer significant potential for future developments, and offers guidelines for case‐based reasoning system development.
Green Purchasing Strategies: Trends and Implications
Authors: Min Hokey , Galle William P.
Published: April 2006

IN BRIEF

Over the last two decades, growing concerns about ecosystem quality have led to a renewed interest in environmentalism. Purchasing professionals should also be concerned and need to rethink purchasing strategies which have traditionally neglected environmental impacts. To help foster environmentally concerned purchasing strategies, this article presents the findings of an empirical survey of NAPM members in firms with a high level of awareness and frequent applications of “green” purchasing. Environmental factors are identified that may reshape supplier selection decisions. The role of “green” purchasing in reducing and eliminating waste is discussed. Also, effects of “green” purchasing on packaging decisions are explored. Finally, some important practical guidelines are suggested which may enhance the effectiveness of regulatory compliance, pollution prevention, and resource recovery.
The Relationship Between EDI and Supplier Reliability
Authors: Walton Steve V. , Marucheck Ann S.
Published: April 2006

IN BRIEF

Past studies into EDI have shown, mostly by examples, that EDI can be used as a supplier management tool to achieve improved supplier reliability by providing both trading partners with better information. This, in turn, leads to closer supplier relationships, fewer late orders, and a decrease in problems with delivered quality, quantity, or mix. The research discussed in this article tests this contention by examining EDI usage patterns and supplier reliability in a sample of 30 companies that transmit purchase orders to their suppliers via EDI. The study found that the quality of delivered products and materials, as well as the delivery of the correct item/mix, is related significantly to (1) the buyer's experience using EDI as a tool in supplier management; (2) the willingness of both the buyer and supplier to share sensitive production and capacity information; (3) the acquisition of the EDI system; and (4) the level of EDI integration with other computer applications. Integrating the findings of this study with past research suggests that EDI can be used as part of an overall supplier management strategy to improve supplier performance and reduce the cost associated with materials acquisition.
Asset Recovery: New Dynamics for Purchasing Organizations
Authors: Chandrashekar Ashok , Dougless Thomas C.
Published: April 2006

As a result of economic pressures, organizations have begun to pay more attention not only to purchasing practices but also to the disposal of surplus material, a function which is called by many names including asset recovery. This article begins with a discussion on the basic principles of asset recovery. A framework to analyze asset recovery decisions is then provided along with examples to illustrate the effect of tax and other laws on the various decisions. Finally, this article discusses some of the contemporary issues (including the alternative methods) in surplus asset disposal and their impact on the function.
The Development of a Time‐Based Construct and Its Impact on Departmental Design and Structure
Authors: Carter Craig R. , Hendrick Thomas E.
Published: April 2006

IN BRIEF

Cycle time reduction is a key element of logistics strategy, in which purchasing can play a pivotal role. Time‐related mistakes made by purchasing and materials managers cause dysfunctional ripples throughout the remainder of the supply chain. This article develops a reliable and valid scale to measure purchasing's involvement in timebased strategies and tactics, and examines how the adoption of these activities impacts departmental design and structure.
Monitoring Price Increases with Economic Data: A Practical Approach
Authors: Newman Richard G.
Published: April 2006

IN BRIEF

Using the Producer's Price Index and the Census of Manufacturers, buyers can track material price movements and changing patterns in labor rates within selected industries. The ability to measure the increase in material and labor costs present in the price structure should make it easier to protect against the price increase. It should also make it more difficult for the suppliers to “pass along” increases in prices that do not add value to the product. In addition, using the material to labor ratio from the Census of Manufacturers, the buyer can monitor trends toward material intensity in the industry. Should this occur, it becomes more difficult to blame price increases on labor, if it is becoming a smaller fraction of price. The PPI can also be used to verify long‐term price increases in the industry as well as key component increases.
Supplier Selection Decisions In Systems/Software Purchases
Authors: Gustin Craig M. , Daugherty Patricia J. , Ellinger Alexander E.
Published: April 2006

Changing business conditions are likely to influence the supplier evaluation process and, thus, the relevance of selection criteria should be periodically reconsidered. In order to explore this issue, an empirical study of logistics executives' perceptions of the relative importance of specific criteria (used in the selection of systems/software vendors) was conducted. The respondents identified vendor attributes (i.e., support, reliability) and product/service attributes (i.e., flexibility, ease of use) to be of the greatest importance and economic attributes (i.e., cost) to be significantly less important when selecting a vendor for systems/software.
The Ethical Environment Facing the Profession of Purchasing and Materials Management
Authors: Cooper Robert W. , Frank Garry L. , Kemp Robert A.
Published: April 2006

This article presents the key findings of a study cosponsored by NAPM that surveyed NAPM members in an effort to (1) identify the key ethical issues facing the profession of purchasing and materials management today, and (2) determine the extent to which purchasing professionals find various factors to be helpful or to present challenges to their efforts to act ethically. A comparison of the findings for C.P.M.s and non‐C.P.M.s indicates that the two groups of NAPM members have very similar views regarding the key ethical issues and the helps and challenges encountered by the profession. The implications of the key findings for business and the profession are discussed.
Evolving Roles and Responsibilities of Purchasing Organizations
Authors: Johnson P. Fraser , Leenders Michiel R. , Fearon Harold E.
Published: April 2006

IN BRIEF

The Center for Advanced Purchasing Studies (CAPS) undertook its first focus study investigating organizational relationships in purchasing in 1987. This research was replicated in 1995. A total of 119 firms responded to both studies, providing a unique opportunity to perform a longitudinal analysis on patterns of change within the supply function. Analysis of these 119 firms demonstrated a high level of organizational churning in the areas of organization structure, chief purchasing officer (CPO) reporting relationship, CPO title, and CPO turnover. Findings also indicate that a high percentage of CPOs do not have prior purchasing experience and that organizational change has a negative influence on purchasing's involvement in major corporate activities.
The Potential of Intelligent Software Agents in the World Wide Web in Automating Part Procurement
Authors: Khoo Li‐Pheng , Tor Shu Beng , Lee Stephen S.G.
Published: April 2006

IN BRIEF

The procurement process is notorious for being tedious and protracted due to data gathering and prolonged negotiations. With the emergence of the World Wide Web, more and more companies have established a visible presence by publicizing their products on their Web sites. If this information can be accessed automatically, ideally without the need for human intervention, the time required for procurement can be reduced. Intelligent Software Agents (ISAs) can potentially fulfill this function. In this article, an implementation of electronic sourcing using ISAs is discussed. An intelligent software agent was created using Java‐To‐GoTM, a template which extends the Java Programming LanguageTM. A client agent from the computer of the sourcing organization visits the Web sites of prospective vendors to determine if they can supply the product according to the procurement specifications. A rudimentary example of sourcing for spur gears is discussed. The demonstration conducted has proven the viability of software agents in undertaking the task of procurement in electronic commerce. Further research and development is necessary before software agents can be used more extensively in electronic procurement.
The Green Supply Chain: Integrating Suppliers into Environmental Management Processes
Authors: Walton Steve V. , Handfield Robert B. , Melnyk Steven A.
Published: April 2006

IN BRIEF

In business today, companies cannot ignore environmental issues. Increasing government regulation and stronger public mandates for environmental accountability have brought these issues into the executive suite, and onto strategic planning agendas. At the same time, companies are integrating their supply chain processes to lower costs and better serve customers. These two trends are not independent; companies must involve suppliers and purchasers to meet and even exceed the environmental expectations of their customers and their governments. Based on case studies of five companies in the furniture industry, a number of supply chain environmentally‐friendly practices (EFP) are identified. Using accepted qualitative research methods for case‐based research, several primary areas for change to increase purchasing's impact on environmental results are identified: 1. Materials used in product design for the environment 2. Product design processes 3. Supplier process improvement 4. Supplier evaluation 5. Inbound logistics processes

The experiences of these companies illustrate the types of environmentally‐friendly practices used in each of these five areas, and “rules of thumb” which purchasing and supply chain managers can apply. Two additional themes which emerge from this research are the importance of management's commitment to supply chain EFP, and the need to move beyond environmental compliance to achieve a proactive environmentally‐friendly supply chain.
Exploring Import Stimulation Behavior: The Case of Cypriot Importers
Authors: Leonidou Leonidas C.
Published: April 2006

This article explores the stimulation behavior of importing firms based on a random sample of 100 Cypriot distributors purchasing from abroad. The findings revealed that the primary factors relating to import motivation were internal‐proactive, with sales, profits, and growth stimuli ranked in top positions. Principal components analysis of the initial list of import stimuli produced five underlying dimensions, with “corporate gains/benefits” being the strongest. In examining the effect of internationalization parameters on each of these dimensions relatively significant results were observed, particularly for factors measuring the firm's financial performance in relation to sales of imported goods.
An Empirical Investigation of Outsourcing Decisions
Authors: Laios Lambros , Moschuris Socrates
Published: April 2006

Eighty‐five make or buy decisions, each made in a different enterprise, were classified into three categories (items/services made, items/services bought, new items/services) according to the method of acquisition before the resolution of the make or buy issue. Information was collected on a number of variables and analyzed by statistical methods. Items/services made (subjected to make or buy investigations) are characterized by low product complexity and low commercial uncertainty. On the contrary, items/services bought and new items/services (subjected to make or buy investigations) are characterized by high product complexity and high commercial uncertainty. The involvement of functions and hierarchical levels in make or buy investigations for new items/services was found to be relatively low. This fact increases the risk of making erroneous decisions that have a serious impact on the competitive position and profitability of enterprises.
Purchasing and Supplier Involvement: Issues and Insights Regarding New Product Success
Authors: McGinnis Michael A. , Vallopra Rafeekh Mele
Published: April 2006

This research examines the effects of purchasing and supplier involvement on new product success. Two hundred fifty‐two senior purchasing managers completed a mail questionnaire that addressed a wide range of issues regarding the effects of purchasing and supplier involvement, the management of supplier involvement, the organization's strategic orientation, and the organization's competitive environment on new product success. The results indicate that the organization's strategic orientation and competitive environment, purchasing involvement, and supplier involvement affect new product success. The appropriate level, timing, and frequency of supplier involvement was found to vary with the situation. The results also provide insight into the role of purchasing in new product development and the effective management of supplier involvement in new product development.
The Apparel Industry Response to “Sweatshop” Concerns: A Review and Analysis of Codes of Conduct
Authors: Emmelhainz Margaret A. , Adams Ronald J.
Published: April 2006

The apparel industry has faced increased scrutiny in recent years due to governmental and consumer concern over the use of “sweatshop” labor in the production of goods. This is particularly true for those firms that use foreign suppliers. As a result, purchasing managers for U.S. apparel manufacturers and retailers have found themselves faced with the challenge of ensuring that their merchandise is produced under humane, equitable conditions, even though suppliers may be located in distant markets outside of the corporate umbrella. This study reviews industry responses to this challenge. Industry initiatives, such as the Apparel Industry Partnership Agreement and the National Retail Federation Statement of principles on Supplier Legal Compliance, are discussed, and the content of codes of conduct from major manufacturers and retailers are analyzed. The review indicates that while many firms have codes of conduct, there is only limited uniformity across codes, the codes lack substantial detail, and the codes are particularly lax in the area of monitoring and enforcement.
Outsourcing Supply Management
Authors: Maltz Arnold , Ellram Lisa
Published: April 2006

There is increasing interest in outsourcing part or all of the supply function, but little empirical knowledge of the drivers of this phenomenon. Based on a survey of 126 chief purchasing officers, internal purchasing outperforms third parties when strategic buys are involved. For nonstrategic purchases, performance is about equal for internal and third party purchasers, except where tight systems connections or strategic input are critical. Accompanying case studies support these conclusions and illustrate the approaches used by leading firms to position internal purchasing for maximum efficiency and effectiveness.
Indicator Qualities of the NAPM Report On Business®
Authors: Kauffman Ralph G.
Published: April 2006

Much has been written over many years concerning use of the data in the NAPM Report On Business® as economic indicators but there has not been any recent attempt to review and evaluate the research. This article reviews the representation of business activity by economic indicators, compares qualities of NAPM Report On Business® data to those desirable in indicators, summarizes previously published research on the use of NAPM data as indicators, and presents some new and previously unpublished research on this subject. The use and value of NAPM data in the development of purchasing and supply strategy is also discussed. It is concluded that NAPM data possesses many desirable indicator qualities, are useful in the analysis of business and economic activity, and have value in the development of purchasing and supply strategy.
Purchasing and the Learning Curve: A Case Study of a Specialty Chemicals Business Unit
Authors: Sinclair Gavin
Published: April 2006

This article presents a case study of the learning curve in a specialty chemicals business unit. Even though the learning curve literature has largely ignored the effects of purchasing, over 80 percent of the total cost reduction in this study was the result of raw material cost savings. The purpose of this article is to highlight the important role played by purchasing in the study of the learning curve. This study was conducted when the author was a business manager in the subject company which allowed for complete access to data, personnel, and company documents. This “insider's position” was a critical factor in uncovering the sources of cost reduction in this business unit. Cost data for 221 products produced by this business unit were evaluated using the learning curve. Cross‐sectional differences in learning rates were analyzed to determine the sources of cost reduction. Cost reduction efforts had the most success when the business unit was able to identify and prioritize the cost reduction opportunities and then apply the proper type and level of resources.
Strategic Role and Contribution of Purchasing in Singapore: A Survey of CEOs
Authors: Goh Mark , Lau Geok Theng , Neo Lillian
Published: April 2006

The purchasing function is receiving increased attention as a key contributor to the strategic success of the firm. This study seeks to identify the strategic role of the purchasing function and the contributions that purchasing can make in an organization. A mail survey was conducted among The CEOs based in Singapore to examine the relationship between corporate competitive strategy and purchasing objectives, as well as how purchasing affects business performance through its integration with other functions, its partnership with suppliers, and its involvement in team decisions. The data collected were factor analysed and the results suggest that purchasing objectives are affected by the firm's corporate competitive strategy. More important, purchasing can yield better business performance through greater integration with other functions, closer partnership with suppliers, and greater involvement in team decisionmaking.
The Future of Purchasing and Supply: A Ten‐Year Forecast1
Authors: Carter Phillip L , Carter Joseph R. , Monczka Robert M. , Slaight Thomas H. , Swan Andrew J.
Published: April 2006

The purpose of this research was the development of the 10‐year forecasts for purchasing and supply based upon a close examination of key change drivers. The authors aimed at highlighting the most important areas of concern for purchasing executives. The research included trends of importance for organizations of all sizes, in all major industries — profit and nonprofit, private and public. To this end, the research team:

Identified the major economic, demographic, societal, competitive, and technological trends most likely to have major implications for the purchasing and supply management profession, its professionals, and organizationalprocesses

Projected the identified trends for 10 years (2008)

Determined the impact of these trends on purchasing and supply executives

Forecasted the environment for purchasing and supply in 10 years (2008)

Projected the changes to the purchasing and supply profession, its professionals, and organizational processes implied as a result of the research
International Sourcing: An Australian Perspective
Authors: Rexha Nexhmi , Miyamoto Tadayuki
Published: April 2006

International sourcing has emerged as an integral part of firms' competitive advantage building. In spite of increasing management attention to international sourcing, the literature is predominately based on U.S. research. Taking into account the impact of a firm's operational environment upon its sourcing strategies, the applicability of the existing knowledge outside the United States is highly questionable. This study provides new insights into the understanding of international sourcing from the unique perspective of Australia‐located manufacturers. Intra‐firm trade practice among Australian subsidiaries of multinationals is also investigated. While the study found distinctive international sourcing behaviors of Australia‐located manufacturers, it also discovered a distinctive pattern of international sourcing practice.
Manufacturing Support for Hong Kong Manufacturing Industries in Southern China
Authors: Lee Humphrey YH. , Tummala V.M. Rao , Yam Richard C.M.
Published: April 2006

The Hong Kong/Southern China area has been a low‐cost manufacturing center. To seize the economic opportunities in the 21st century, Hong Kong must sustain its global competitiveness by further enhancing its manufacturing support competencies. Hong Kong needs strong manufacturing support infrastructures including transportation, information technology, and finance, as well as technical, managerial, and market knowledge competencies. This article identifies relevant manufacturing support activities and examines their importance in developing long‐term competitive manufacturing strategies. Sample survey and structured personal interview methodologies are used to accomplish this objective.
Human Resource Management within Purchasing Management: Its Relationship to Total Quality Management Success
Authors: Carter Joseph R. , Smeltzer Larry R. , Narasimhan Ram
Published: April 2006

The extent to which human resource management (HRM) within purchasing management affects total quality management (TQM) was empirically tested. Five primary results emerged, first, organizations with more successful TQM programs were more likely to stress formal performance evaluations of purchasing employees. Second, purchasing employees at successful TQM firms were more involved in key decisionmaking processes that impact their jobs than their counterparts in less successful TQM firms. Third, purchasing employees in organizations with more successful TQM programs had a greater level of perceived support through job security and less fear of failure when taking a risk. Fourth, purchasing employees in more successful TQM firms had more TQM‐related training. Fifth, purchasing employees in more successful TQM organizations were more likely to be rewarded for individual goal attainment than purchasing employees in less successful TQM organizations.
The Purchasing and Control of Supplementary Third‐Party Logistics Services
Authors: van Hoek Remko I.
Published: April 2006

Mass customization poses a challenge to the development of competitive supply chains. Third‐party logistics service providers are targeting customizing operations to supplement their transport and warehousing services. Their expansion is driven by strategies for adding value and upgrading customer relations. This article assesses the development of these relations by presenting the results of a survey conducted among service providers. The assessment covers the nature of the purchasing policy and governance structure applied in this particular type of interfirm relations, including the type of services, contracts, frequency, level, and content of coordination and communication among parties in the chain. It was found that the new transactional context does not represent a market environment in which third parties can escape traditional arm's‐length fixed contracts. It was also found that supplementary customizing services are not often applied. Recommendations are made about purchasing these services and about initiatives for third parties to start expanding their competence within the governance structure.
Collaborative Value Analysis: Experiences from the Automotive Industry
Authors: Hartley Janet L.
Published: April 2006

As the nature of competition shifts to a supply chain focus, effectively leveraging suppliers' technical expertise is becoming essential to market success in many industries. Some organizations are using a time‐proven technique, value analysis (VA), to leverage their suppliers' technical expertise. This study reports the benefits and challenges of supplier involvement in VA based on the experiences of four first‐tier automotive suppliers. When suppliers are involved in VA, many ideas can be developed and trust can increase, both of which strengthen buyer‐supplier partnerships. Unfortunately, reluctance to share cost data, lack of engineering resources, and failure to obtain customer approval are barriers to VA implementation. Several practices can be used to overcome these barriers.
Comparisons of the Competitive Position of Canadian, Mexican, and U.S. Suppliers
Authors: Callahan Thomas J
Published: April 2006

Data from 514 Canadian and U.S. purchasing professionals were collected and analyzed to compare Canadian, Mexican, and U.S. suppliers' performance on important competitive dimensions. U.S. purchasing professionals rated Canadian suppliers lower on the dimensions of cooperation, cost, and quality than they rated U.S. suppliers. Canadian purchasing professionals rated U.S. suppliers low on cooperation. Both Canadian and U.S. suppliers rated Mexican suppliers relatively low on all competitive dimensions. These results are discussed and recommendations for future research are offered.
Strategic Sourcing: A Framework and a Case Study
Authors: Sislian Eric , Satir Ahmet
Published: April 2006

A strategic perspective for insource/outsource decisions is provided for organizations whose competitive strategies are based on product differentiation and/or focus. The basic tenants of four previous frameworks for strategic sourcing from the literature are briefly reviewed. Following a critique of these frameworks, a new strategic sourcing framework is proposed. Elements of the frame‐work are discussed in terms of primary factors (competitive advantage and demand flexibility) and secondary factors (process capability, process maturity, and strategic risk). A decision flowchart incorporating these factors is given to illustrate the functioning of the proposed framework. Implementation issues are discussed using a case study wherein two products from an electronics equipment manufacturer are subjected to sourcing decisions using the framework.
Partnership Sourcing: An Organization Change Management Perspective
Authors: McIvor Ronan , McHugh Marie
Published: April 2006

This article highlights the organization change implications for organizations that are attempting to develop collaborative relationships with their suppliers. The research focuses on four dimensions of collaborative relations including joint buyer‐supplier cost reduction, supplier involvement in new product development, delivery and logistics management, and core business strategy. A case study is presented which outlines how an organization adopted a strategy that led to extensive outsourcing and the adoption of more collaborative relations with its key suppliers. The pursuit of this strategy has acted as a stimulus for change within the organization. The article identifies a number of issues that must be addressed, including the adoption of an integrated approach to the management of strategic change, the pivotal role of senior managers as facilitators of this change, and the involvement of those most affected by the movement toward more collaborative buyer‐supplier relationships.
The Supply Organizational Structure Dilemma
Authors: Johnson P. Fraser , Leenders Michiel R.
Published: April 2006

This article presents the findings of research into how and why large, multiunit firms make major changes to the organizational structure of the supply function. The research used case‐based methodology to investigate 10 large companies that had recently made a major supply structure change. A total of 15 major supply organizational changes were studied at the 10 sites. The research found that these major changes were a result of changes in the overall corporate structure, challenging the conventional view found in standard purchasing texts that supply executives have flexibility in matters of organizational design. The research identified that a common driver for corporate organizational change in each of the sites studied involved an attempt by the company to improve its cost structure. Chief financial officers (CPOs), business unit managers, consultants, and chief purchasing officers (CPOs) were all identified as having involvement in the supply organizational structure change process at some sites. A principal challenge for CPOs is to understand how to provide supply improvement opportunities under any organizational structure.
Supplier Evaluation and Rationalization via Data Envelopment Analysis: An Empirical Examination
Authors: Narasimhan Ram , Talluri Srinivas , Mendez David
Published: April 2006

Strategic evaluation of supplier performance assists firms in improving their operations across a variety of dimensions. Specifically, it aids in supplier process improvement, which in turn enhances firm performance, allows for optimal allocation of resources for supplier development programs, and assists managers in restructuring their supplier network based on performance. In order to address these issues, this article proposes a methodology for effective supplier performance evaluation based on data envelopment analysis (DEA), a multi‐factor productivity analysis technique. The efficiencies derived from the DEA model are utilized in conjunction with managerial performance ratings in identifying supplier clusters, which are categorized into high performers and efficient (HE), high performers and inefficient (HI), low performers and efficient (LE), and low performers and inefficient (LI). Effective benchmarks from the HE cluster are identified for improving the operations of suppliers in the HI, LE, and LI clusters. Finally, managerial insights and implications from the study are discussed.
Transparency in Supply Relationships: Concept and Practice
Authors: Lamming Richard C. , Caldwell Nigel D. , Harrison Deborah A. , Phillips Wendy
Published: April 2006

The problems associated with transparency in supply relationships — the two‐way exchange of information and knowledge between customer and supplier — represent chronic difficulty for managers. The sensitivity of such exchanges appears to interfere with — even to negate — their effectiveness and value. This may be because of insufficient consideration of types of transparency and a propensity for customer domination in the relationship. This research is aimed at exploring these difficulties in order to understand the dynamics and varying nature of transparency in this context (including a proposed state of value transparency) and to suggest ways in which it might be approached in practice. In addition to the social and technology‐led drivers identified for transparency, the research approach to the concept in supply has been driven by the observation that many of the traditional routines and activities occurring between industrial or commercial purchasers and their suppliers can be unnecessary and wasteful. This article presents the background to this hypothesis and records the development of a framework for discussion of the concept.
A Configuration Typology for Involving Purchasing Specialists in Product Development
Authors: Lakemond Nicolette , van Echtelt Ferrie , Wynstra Finn
Published: April 2006

This article develops a configuration typology for purchasing's involvement in product development projects. Six configurations are identified and analyzed, varying in degree of coordination and level of purchaser integration. The configurations are illustrated by five case studies performed in different companies operating in different industries. Enabling factors, such as the purchasing organization and the competencies and skills of the purchasers, can facilitate the involvement of purchasers in a development project. Project size and project complexity can be identified as driving factors influencing the appropriateness of the purchaser involvement configurations. Dedicated, full‐time purchasing specialists in combination with a purchasing coordinator provide the strongest degree of involvement necessary for managing large and complex projects, whereas indirect, ad hoc purchasinginvolvement provides the lowest degree of involvement sufficient for small and relatively simple projects.
Measuring the Performance of Suppliers: An Analysis of Evaluation Processes
Authors: Simpson Penny M. , Siguaw Judy A. , White Susan C.
Published: April 2006

In the past, commonly used supplier evaluative criteria have focused on quality, service or delivery, and price. In recent years, the channels literature has indicated other areas, such as relationship factors, that may affect channel partner performance; yet, no known research has examined either the extent of formal supplier evaluation programs or the factors currently used in channel evaluation. The purpose of this research is to fill that void by determining the number of firms that have systematic evaluation systems and to examine the currently used supplier evaluation instruments — with a focus on whether or not channel relationship factors are considered — from a wide cross‐section of industries. Findings indicate that less than half of the responding firms have a formal supplier evaluation process in place, and that quality, supplier certification, facilities, continuous improvements, physical distribution factors, and channel relationship factors were the factors most commonly included in supplier evaluation programs.
Total Cost of Ownership Models: An Exploratory Study
Authors: Ferrin Bruce G. , Plank Richard E.
Published: April 2006

This research examines organizational purchasing models focusing on the use of total cost of ownership (TCO) to value purchase opportunities. The research presents evidence that leading‐edge companies actually use such models. This exploratory study provides, for the first time, data on the nature, and use, of the cost drivers on which organizations base their TCO computations. The study suggests a generic model of total cost of ownership is not appropriate. However, the findings of this research suggest a TCO model based on a core set of cost drivers, along with an auxiliary set of cost drivers, is appropriate. The core cost drivers would be present in all, or most, TCO computations. Purchasing managers could use different, specific cost drivers from the auxiliary set to tailor the TCO computation for a particular purchase situation. The authors also suggest that a value‐based, multi‐firm, or supply chain, TCO computation model is needed. Such a TCO model should be similar to a single‐firm TCO model.
Factors That Influence Chief Purchasing Officer Compensation
Authors: Ogden Jeffrey A. , Zsidisin George A. , Hendrick Thomas E.
Published: April 2006

While several previous surveys have examined the salaries of purchasing professionals, none have addressed the specific issues related to chief purchasing officer (CPO) compensation. This article presents the results of a CAPS Research survey investigating job related and personal characteristics that influence Fortune 500 chief purchasing officer compensation. Logistic regression was used to deriveodds ratios to analyze the surve data. Empirical results indicate that the following are the main drivers of CPO compensation: (1) industry, (2) size of organization as measured by annual sales, (3) spend as a percent of sales, (4) total number of employees reporting, (5) levels of management between the CPO and CEO, (6) years of businessrelated, non‐purchasing experience, (7) CPO age, and (8) professional certifications. Implications of the research findings are discussed throughout the article.
The Perceived Impact of Supply Chain Management on Organizational Effectiveness
Authors: Elmuti Dean
Published: April 2006

Supply chain management seeks to enhance competitive performance by closely integrating the internal functions within a company and effectively linking them with the external operations of suppliers and channel members. This study was undertaken to study the impact of supply chain management on overall organizational effectiveness and to identify problems that affect supply chain management success. The results show that organizations generally considered themselves successful at managing their supply chains. However, while they have achieved significant improvement in organizational performance, they have not reached the order of magnitude of improvements ascribed to supply chain management.