bluuebunny/crossref_metadata_2025_split huggingface dataset:
A Comparison of North American and European Future Purchasing Trends
Authors: Carter Joseph R. , Narasimhan Ram 
Published: April 2006

What jobs will exist in a typical firm's purchasing function in the future? The predictions include the following: The absolute number of jobs within purchasing will decrease, as will the layers of management. Purchasing organizations will adopt flatter forms, with less emphasis on hierarchy and less distinction between positions. “Functional silos” will become obsolete. The classical functions of marketing, manufacturing, engineering, purchasing, finance, and personnel will be less important in defining work. More people will take on project work focused on continuous improvement of one kind or another. Fundamental restructuring and reengineering will become a way of life at most companies. The primary focal points will be a new market‐driven emphasis on creating value with customers; greatly increased flexibility; a new business‐driven attack on global markets that includes a deployment of information technology; and fundamentally new jobs. Work will become integrated in its orientation, and the payoffs will increasingly be made through connections across organizational and company boundaries. New measurements that focus on strategic directions will be required. Metrics will be developed, similar to the “cost of quality” metric, which incorporate the most important dimensions of the environment. New human resource management approaches will be developed; human resource management will become less of a staff function and more closely integrated with the basic work. Teamwork will be critical to organizational success.This article presents the results of an interactive assessment of future purchasing trends provided by two groups of senior purchasing and materials management executives—one group from the North American Executive Purchasing Roundtable, and the other from the European Executive Purchasing Roundtable.
Purchasing and Supply Management: Future Directions and Trends
Authors: Carter Joseph R. , Narasimhan Ram 
Published: April 2006

IN BRIEFThis article provides a summary of The Purchasing Futures Research Project, sponsored by the Center for Advanced Purchasing Studies (CAPS). The project's goal was to develop a vision of the nature of the purchasing and supply management function in the next century, including roles, responsibilities, capabilities, and organizational structures. The article identifies various purchasing and business market trends and synthesizes these into strategic organizational propositions that describe how purchasing and supply management can develop during the next century.
Procurement Reform and MIS Project Success
Authors: Hulme Martyn R. 
Published: April 2006

IN BRIEFLess than one in 10 large Management Information System (MIS) projects succeeds. While the procurement process is not the only factor known to contribute to this high failure rate, it has been consistently identified as a source of difficulty. Knowing that procurement contributes to difficulty, however, is not useful if the reason it does so is not also known. This article analyzes procurement's contribution to failure, and describes the reforms needed to improve opportunities for success. The problem stems from the wide use of tender theory procurement (competitive bidding), and the invalid assumption that a specification can provide the basis for making value‐oriented MIS buying decisions. In addition, tender theory procurement interacts with the MIS project environment to create an ethical hazard that makes it almost impossible to succeed. The reforms needed to overcome these problems are substantial. They require that tender theory be set aside and replaced by partnering‐oriented procurement methods.
Supplier Selection Criteria in the Healthcare Industry: A Comparison of Importance and Performace
Authors: Lambert Douglas M. , Adams Ronald J. , Emmelhainz Margaret A. 
Published: April 2006

IN BRIEFAs healthcare costs have risen, increased attention has been focused on the role of purchasing within hospitals. This article reviews the attributes traditionally used by purchasing managers in supplier selection and then examines the attributes currently being used within a health care setting. The conclusion is that even though the government and insurers have placed considerable pressure on healthcare providers to reduce costs, low price has not become a more important attribute in supplier selection than product quality, delivery, or service. Further, the research team found that, on average, suppliers are not meeting customer requirements on key supplier selection attributes.
Purchasing's Performance as Seen By Its Internal Customers: A Study in a Service Organization
Authors: Young Joyce A. , Varble Dale L. 
Published: April 2006

IN BRIEFIn today's Total Quality Management environment, the purchasing function is not only responsible for securing vital production and facilitating resources for its organization, it is also charged with providing quality service to its internal customers. To date, the purchasing profession does not have a widely accepted instrument to measure the dimensions of service quality within a purchasing context. This research attempts to address this void by applying SERVQUAL, an instrument that has traditionally been used to assess retail consumer perceptions of service quality, to purchasing performance within a service organization. Initial results indicate that SERVQUAL does provide the purchasing function with a useful method for obtaining feedback from its internal customers.
Supply‐Based Strategies, Human Resource Initiatives, Procurement Leadtime, and Firm Performance
Authors: Jayaram Jayanth , Vickery Shawnee K. 
Published: April 2006

IN BRIEFThe role of procurement leadtime (PLT) in time‐based competition (TBC) has received little attention in procurement and operations literature. This article examines the relationship of procurement leadtime to overall firm performance and identifies key antecedents of procurement leadtime performance. The research focuses on first‐tier suppliers to the “Big 3” automobile manufacturers in North America. Linkages among supply‐based strategies, human resource (HR) initiatives, procurement leadtime performance, and overall business performance are tested empirically. The study shows that procurement leadtime is significantly related to overall firm performance, especially market share and market share growth. The supply‐based strategy of standardization and the HR strategy of employee empowerment are shown to be key drivers of procurement leadtime performance. Also, the combined use of these strategies is shown to have a synergistic effect on procurement leadtime.
Trust and Relationship Commitment in Logistics Alliances: A Buyer Perspective
Authors: Moore Kevin R. 
Published: April 2006

IN BRIEFThis research provides new insights into logistics alliances by examining the roles of trust and commitment in such relationships. A model of logistics alliances from a buying firm's perspective is proposed and empirically tested using a sample of 339 firms with various types of logistics alliances. The results indicate that both trust and relationship commitment are important elements in logistics alliances. A third party's equity behavior appears to be an important factor affecting the development of trust in a relationship while conflict significantly hinders the development of relationship commitment. The results also indicate that relationship commitment and effectiveness are influenced more by negative outcomes associated with conflict than by positive outcomes associated with trust.
Proactive Supply Management: The Management of Risk
Authors: Smeltzer Larry R. , Siferd Sue P. 
Published: April 2006

IN BRIEFProactive supply management is a frequently used phrase, yet no agreement exists about its precise meaning. This article argues that proactive purchasing management is risk management, a perspective that evolved from case studies of the purchasing function. To better understand risk management from the perspective of purchasing management, it is analyzed within the context of transaction cost theory and the resource dependency model. Evidence is provided from the case studies that risk management is an appropriate framework for understanding proactive purchasing management. Examples of risk management through proactive purchasing activities are presented.
The Product Life Cycle: A Tool for Functional Strategic Alignment
Authors: Birou Laura M. , Fawcett Stanley E. , Magnan Gregory M. 
Published: April 2006

IN BRIEFThis article develops an integrative strategic framework utilizing the Product Life Cycle (PLC) as a “common strategic denominator”. The model is an attempt to fill an existing void in the strategic literature concerning the integration of different functional strategies into a holistic business strategy.This article reports the results of a three‐part empirical study of production, purchasing, and logistics management professionals that investigated the linkage between functional level strategies and the PLC. The results are based on the input from 159 production, 126 purchasing, and 133 physical distribution executives who served to identify the strategic importance of the PLC, and effective functional strategies for each stage of the PLC.
Measuring Contractors' Performance
Authors: Straight Ronald L. 
Published: April 2006

SUMMARYGovernment contractors now provide citizens services once provided directly by federal, state, and local governments. The number and value of contractual actions and their importance continue to grow, representing an increasingly larger share of governmental services. It is now vital that contractors be selected that will perform contractual requirements without fail so that essential services are not disrupted. In all contract situations‐federal, state, local, or commercial‐a simple method of evaluating contractors is essential. A system too complex or too difficult for evaluators to carry out will not achieve its goal. This article discusses the essential elements of a contractor performance measurement system, reviews the difficulties that may be encountered, and recommends factors to be incorporated in an effective system.
The Year 2000 Problem in the Supply Chain: A Managerial Perspective
Authors: Essig Michael , Arnold Ulli , Scheuing Eberhard 
Published: April 2006

SUMMARYThis article reports the results of a Center for Advanced Purchasing Studies (CAPS)‐sponsored study on the Year 2000 (Y2K) problem in the supply chain. A special research agenda is presented which shows that the Y2K challenge is not just a computer problem. Models for achieving supply chain Y2K compliance are developed and empirically tested. The data are based on questionnaires and focus groups in the United States and Germany.
The Impact of Web‐Based Procurement on the Management of Operating Resources Supply
Authors: Croom Simon R. 
Published: April 2006

SUMMARYThe focus of this article is on the impact of Web‐based order processing systems for procurement strategy in the management of maintenance, repair, and operating (MRO) supply. The management of MRO supplies has been little discussed in the literature, and in many organizations is undertaken in a devolved, decentralized, and uncoordinated fashion. Consequently, MRO procurement is often a poorly managed and non‐value‐added activity, yet MRO purchases may account for many millions of dollars of expenditure for organizations across most, if not all, industries. To explore the impact of Web‐based procurement systems on MRO purchasing, a Delphi study was conducted providing access and analysis of commercially sensitive data.1In this article, it is contended that greater information processing capability achieved through the use of electronic commerce, specifically Web‐based procurement, will enable significant cost improvements and strategic leverage to be obtained through a more strategic approach to management of the typically low‐value, high‐variety goods and services that constitute the main category of MRO items. E‐procurement of MRO items may be a so‐called “killer application” on the basis of potential efficiency gains.Further, an important consequence of the reengineering of the MRO procurement process will be to raise the professional profile of the purchasing function through enhanced internal customer service and significant total cost improvements.
ISO 14000: Assessing Its Perceived Impact on Corporate Performance
Authors: Montabon Frank , Melnyk Steven A. , Sroufe Robert , Calantone Roger J 
Published: April 2006

SUMMARYThe ISO 14000 series of environmental standards is a relatively recent development in environmentally responsible manufacturing (ERM). It applies to environmental systems and processes the same approach used by its predecessor, the ISO 9000 quality standards. Being relatively new, numerous questions have arisen regarding the impact of these new standards on both the corporate environmental management system and corporate performance. This article addresses some of these questions by drawing on data generated by a large‐scale survey of American managers. The results indicate that, even though ISO 14000 has achieved relatively limited acceptance, there is strong evidence to indicate that this series of standards can positively impact both the performance of the environmental management system as well as overall corporate performance. Further, it was found to outperform other ERM initiatives such as the Environmental Protection Agency's (EPA) 33/50 program.
Purchasing Competence and Its Relationship with Manufacturing Performance
Authors: Das Ajay , Narasimhan Ram 
Published: April 2006

SUMMARYThis article develops purchasing competence as a valid construct and explores its relationship with different manufacturing priorities. An empirical study is conducted among purchasing professionals in manufacturing firms. The results of the research indicate that purchasing competence can be operationalized, developed, and estimated in a firm. Further, purchasing competence is found to have a positive impact on manufacturing cost, quality, and delivery, as well as new product introduction and customization performance. Purchasing integration, a component of purchasing competence, is found to relate to all dimensions of manufacturing performance.
An Empirical Investigation of Global Sourcing Strategy Effectiveness
Authors: Petersen Kenneth J , Prayer David J , Scannell Thomas V. 
Published: April 2006

SUMMARYThis study was undertaken to address the need for empirical research on global sourcing strategy effectiveness. This article establishes the importance of and relationships between several factors that drive the effectiveness of global sourcing strategies. Companies are increasingly viewing global sourcing strategies as a means of reducing cost, increasing quality, and enhancing a firm's overall competitive position. This article uses a structural equation modeling methodology to test an explanatory model of global sourcing strategy effectiveness. Results indicate that global sourcing structures and processes, global sourcing business capabilities, international language capabilities, and top management commitment to global sourcing are critical to the effectiveness of a global sourcing strategy.
Purchasing and Supply M anagement's Participation in the Target Costing Process
Authors: Ellram Lisa M. 
Published: April 2006

SUMMARYThis article explores the participation of the purchasing and supply management function in the process of target costing. Target costing is an emerging process whereby organizations calculate the allowable cost (i.e., target cost) for buying/producing the product or service they offer for sale by first determining the acceptable selling price in the marketplace and the organization's required internal margin on the product. Based on case studies of organizations that use target costing, this research is both descriptive and prescriptive in nature. The four primary issues addressed in this article are:
Why do organizations undertake target costing?
Is there a common pattern of participation for the purchasing and supply management function in target costing?
What should the role of purchasing and supply management be in the target costing process?
How can purchasing and supply management be most effectively involved in the target costing process?
Supply Chain M anagement and Its Impact on Purchasing
Authors: Wisner Joel D. , Tan Keah Choon 
Published: April 2006

SUMMARYThe term “supply chain management” has been used to denote the integration of logistics and physical distribution activities by wholesalers and retailers and manufacturers' efforts to effectively integrate purchasing and supply with other functions in the firm. The concept is still evolving. There is no generally accepted definition of supply chain management or general understanding of how supply chain management impacts organizational characteristics and practices. This article presents exploratory findings from a comprehensive survey regarding supply chain management. The objectives of this study were to study the impact of supply chain management on purchasing practices, to further define and develop the supply chain model from various perspectives, and to identify problems associated with supply chain management, particularly from the purchasing perspective.
An Empirical Study of the Relationships among Purchasing Skills and Strategic Purchasing, Financial Performance, and Supplier Responsiveness
Authors: Carr Amelia S. , Smeltzer Larry R. 
Published: April 2006

AbstractThree hypotheses are tested to determine if purchasing skills are related to strategic purchasing, a firm's financial performance, and supplier responsiveness. To test the hypotheses, a survey was administered to a sample of purchasing vice presidents, directors, and managers. A holdout sample was used for exploratory data analysis to test for type (manufacturing compared to non‐manufacturing firms) and size (large compared to small firms). A regression analysis of the remaining sample of 85 surveys indicated that purchasing skills were related to strategic purchasing, a firm's financial performance, and supplier responsiveness. Both research and managerial implications are discussed.
Vertical Cooperation in the Construction Industry: Size Does Matter
Authors: Welling Derk Th. , Kamann Dirk‐Jan F. 
Published: April 2006

SUMMARYThe construction industry is characterized by opportunistic behavior and the lack of vertical cooperation. This article shows how game theory explains this phenomenon and helps to solve it. When the same individuals have to deal with each other in a series of projects, cooperation is more likely to occur than when they deal with a different individual in each project. Supported by an experiment with managers in a construction firm, it was found that particularly in large construction companies, individuals rarely deal with the same individuals at subcontractors. The business recommendation following from this is to adopt an explicit policy of appointing account managers both at the purchasing side of the contractor and the marketing side of the subcontractor to deal with the mutual contacts between the organizations involved.
A Model for Strategic Supplier Selection
Authors: Sarkis Joseph , Talluri Srinivas 
Published: April 2006

SUMMARYThe purchasing function for some time now has been receiving increasing importance as a critical supply chain management component. This is mainly due to the significant impact of material costs on profits, increased investments in advanced manufacturing and information technologies, and a growing emphasis on Just‐In‐Time GIT) production. The critical objectives of purchasing departments include obtaining the product at the right cost in the right quantity with the right quality at the right time from the right source. This requires executing effective decisions concerning supplier selection and evaluation. This article addresses the supplier selection process. This model for evaluation and selection of suppliers considers multiple factors that include strategic, operational, tangible, and intangible measures. The model also allows for input from a variety of managerial decisionmaking levels and considers the dynamic aspects of the competitive environment in evaluating suppliers. An empirical case illustration demonstrates the efficacy of the model. The results provide interesting managerial implications.
Supply Chain Management: Practices, Concerns, and Performance Issues
Authors: Tan Keah Choon 
Published: April 2006

SUMMARYThe advent of information technology and intense global competition has enticed many world‐class manufacturers and service providers into adopting an integrated strategic approach to supply chain management. Although many supply chain management efforts have failed to achieve the desired results, it has become a significant strategic tool for firms striving to achieve competitive success. Using a survey of senior supply and materials management professionals in the United States, this study investigates the contemporary practices and concerns of supply chain management. This study also relates the practices and concerns to firms' performance by means of bivariate correlation and multiple linear regression analysis. A general conclusion is that all of the significant supply chain management practices positively impact performance.
Strategic Direction through Purchasing Portfolio Management: A Case Study
Authors: Gelderman Cees J , van Weele Arjan J. 
Published: April 2006

SUMMARYContrary to the growing number of academic publications on purchasing portfolio models in literature, little is known about their actual use. Kraljic's portfolio model, which was developed in 1983, seems to be the dominant approach in the profession. This model, however, does not provide guidelines for strategic movement of commodities and/or suppliers within the matrix. Based on an in‐depth case study, derived from a major Dutch chemical company, the use of portfolio techniques in purchasing has been explored and described. The results indicate that Kraljic's portfolio approach, when elaborated and tailored, indeed allows for sufficient guidance for developing effective purchasing and supplier strategies. The case study points out what supplier strategies are feasible and what conditions should be met in order to make them happen.
The Role of Value‐at‐Risk in Purchasing: An Application to the Foodservice Industry
Authors: Sanders Dwight R. , Manfredo Mark R. 
Published: April 2006

SUMMARYValue‐at‐Risk (VaR) estimates the downside risk of a portfolio of market‐priced assets at a particular confidence level over a specified time horizon. This article is a tutorial that introduces purchasing managers to the concept of VaR and its potential applications in the purchasing process. It discusses estimation alternatives and issues, and then examines and highlights the role of VaR in the context of a commodity end user with a specific example for a foodservice business. Further, the practical implementation issues of VaR in a corporate environment in general and the purchasing function in particular are discussed. The example and discussions are widely applicable to any commodity end user (e.g., energies, metals, or food‐related commodities), providing potential applications to practitioners and research ideas to academics.