Selection criteria, meanwhile, are also shown to be affected by the nature of the purchase, with criteria designed in line with the complexity and importance of the purchase being an important factor in successful procurement outcomes. Here, organisations have frequently opted to develop framework agreements with preferred suppliers that specify the type or types of goods or services required and the price of those goods or services, but do not commit the buying organisation to any level of demand — although there will usually be certain supplier expectations, which affects prices.
Many studies have been undertaken, with most reporting its positive effect on buyer—supplier collaboration. It is recognised within this literature, of course, that buyers and suppliers will not always have an interest in collaborative relationships.
An exception to the absence of contextual restrictions is in relation to e-auctions. In the case of collaborative relationships, a distinction can be made between collaboration that is discretionary and that which is non-discretionary although some collaboration combines both.
In the different context of European manufacturing, Tella and Virolainen also report cost savings and benefits from synergies. However, it has not been an area of academic interest.
More recently, Keast et al. When buying standard goods and services, buying organisations, if they wish to some major retailers, for example, choose not to will be able to develop a complete contract.
Key findings on supplier Article realated literature about purchasing and The key aspect of context in relation to supplier selection is purchase type. These studies often use models such as that of Hofstede in an attempt to highlight the impact of particular aspects of national culture.
Chapter 6Evidence on the impact of procurement and supply chain management practices and techniques Introduction This chapter addresses RQ3, which asks: In the context of all of the above, in what follows, empirical evidence on the nature, behaviours, antecedents and effect of the collaborative form of buyer—supplier relationships is reported.
An important study providing evidence supporting this point of view was that by Poppo and Zenger, who surveyed information systems managers in the USA and reported: Accordingly, Javed et al. Leverage items would require the use of buying power and warranted middle-ranking skills.
There have been many studies looking at the factors that affect the success of e-procurement implementation. Misalignment between supplier behaviour and contract choice can lead to very adverse outcomes.
The development of selection criteria With respect to selection criteria, the most relevant issue of context here is purchase type. Non-critical items were said to require an approach focused upon minimising transaction costs and could be delivered by junior staff — or even outsourced.
In this sense, there are parallels to the literature on marketing co-operatives. Much of what exists is largely positive, though, not least because the matrix is an effective facilitator of cross-functional discussion about expenditure profiles, procurement and supply management strategies and staff allocation.
The authors were particularly referring to the need for the selection process to maintain face-to-face contact throughout, rather than moving to computer-mediated contact after the initial stages. Similar management behaviours shown to be important to successful collaboration in research studies include fairness, ethical behaviour, reciprocation and commitment.
This is a view supported by Schepker et al. Third, the disagreements regarding the role of trust highlight that the behavioural disposition of supplier managers is a critical contextual factor in terms of the contractual mechanism adopted. Such agreements are not a panacea, though. Purchasing category management An argument against centralised procurement is that organisations can obtain many of the potential benefits of centralisation without adopting it.
This fact is one of the key conclusions of the chapter. Technical and organisational enablers of successful demand management A final issue concerns the enablers of successful demand management.
Findings on contracting Purchase type affects contracts and contracting, with uncertainty frequently causing contractual incompleteness in business-to-business markets. What evidence exists mainly concerns centralised structures and the findings are broadly in line with the advantages and disadvantages outlined above.
Many studies have sought to assess the importance of effective information exchange and communication for successful collaboration, with the evidence suggesting that it is of high importance. A good deal of this attention has been via public auditing, so the literature terrain is extended here to include such studies and prominent government-commissioned policy reviews.
Despite the dominance of this concern, however, it is necessary to cover all aspects of contracting here, starting with the most standard of situations. Nevertheless, the choice of procurement structure is still an important one. Assignment of internal resource and indicative procurement and supply strategies A further preliminary internal step is the segmentation of purchases, something that needs to be undertaken whatever the decisions made regarding the issues discussed above.
A procurement structure dictates the reporting lines of procurement staff and their location within the organisation. In a Centre-led Action Network system, there is a small central team that undertakes certain organisation-level procurements e. One is buyer—supplier information exchange and communication, particularly regarding the product or service, demand forecasts, feedback on the actions of the other party and suggestions for how the production process might be improved.
The benefits and drawbacks of decentralised procurement structures are largely the opposite of those of centralisation, with the key advantage being close and early contact with internal customers. Reduced prices and transaction costs resulting from centralisation are reported by Karjalainen in the Finnish public sector, Kastanioti et al.STRATEGIC SOURCING AND SUPPLIER SELECTION: the paper presents the issues related to strategic sourcing and supplier and ).
A number of articles address the need for purchasing to assume a more strategic role (Carr and Smeltzer, ; Carter and Narasimhan,a, and. The mission of the Journal of Purchasing & Supply Management is to publish original, high-quality research within the field of purchasing and supply management (PSM).
Articles should have a significant impact on PSM theory and practice. Related Links. Author Stats Recent Journal of Purchasing & Supply Management Articles. Recently published articles from Journal of Purchasing & Supply Management. Towards a framework for supply chain finance for the supply side.
Available online 1 September Evidence on the impact of procurement and supply chain management practices and techniques - Towards a framework for enhancing procurement and supply chain management practice in the NHS: lessons for managers and clinicians from a synthesis of the theoretical and empirical literature.
Further these e-Procurement systems have different impact on interorganizational relationship and value generated from e-Procurement.
However these impacts are moderated by adoption and implementation risks. A literature review and classification of electronic commerce research.
Related Articles; Comments; Cite. JOURNAL OF PUBLIC PROCUREMENT, VOLUME 1, ISSUE 1, PUBLIC PROCUREMENT RE-EXAMINED Khi V. Thai* In the public finance literature, government is involved in four major salary.
Inthe U.S. Congress passed a purchasing-related act that authorized the Departments of War and Treasury to .Download