Developing a typology of organisational forms of cooperative purchasing

Abstract

This paper develops a typology for purchasing groups. In the typology, five ideal forms of cooperative purchasing are distinguished based on seven main dimensions. The forms are positioned in a matrix according to two distinguishing dimensions. These two dimensions are the 'influence by all members on the group activities' and the 'number of different group activities'. Underlying the two-dimensional matrix, there are five other dimensions that do not distinguish all forms from each other, but further detail the forms of cooperative purchasing. The typology can serve as a guideline for purchasing groups when a suitable organisational form needs to be chosen. In a suitable form, the dimensions of a group fit the circumstances. For all groups, it is recommended to find this best fit. This is something in which the typology may help. The paper concludes by emphasising the importance of clearly defining and positioning studied forms, because different forms imply different research models and have different advantages, disadvantages, and critical success factors.

Purchasing Organization and Design: A Literature Review

“…dle their purchasing volumes, information, and/or resources in one or more steps of the purchasing process and combine their individual requirements to achieve mutually compatible goals and competitive advantages (Schotanus and Telgen 2007). Purchasing groups may be formal or informal arrangements and consist of dependent or independent organizations in which cooperative supply processes proceed (Schotanus and Telgen 2007).…”

“…Purchasing groups may be formal or informal arrangements and consist of dependent or independent organizations in which cooperative supply processes proceed (Schotanus and Telgen 2007). Prior research can be divided into two research streams.…”

“…Performance implications of cooperative sourcing will be discussed below. Schotanus and Telgen (2007) developed a typology for purchasing groups by discussing specific organizational forms for collaborative procurement which differ by the degree of influence group members have on the activities of the group and the range of activities performed by the group. The typology may be used for selecting an appropriate organizational design for cooperative sourcing.…”

“…For all four archetypes, he defined organizational characteristics which were aligned to the requirements of the respective purchasing situation. Schotanus and Telgen (2007) developed a classification of alternative forms of cooperative purchasing for public institutions. First, they defined five role models of cooperative sourcing and then characterized these models with respect to the influence of their members on the purchase decision and the number of different group activities performed.…”

Tactics at the category level of purchasing and supply management: sourcing levers, contingencies and performance

“…Coordinating a supplier's volume across categories for example can be used to determine a desired overall dependence on supply chain partners and a joint supplier strategy (Castaldo et al, 2009). To realise synergy potentials and enforce mutual approaches, decentralised category teams may coordinate their activities in a category-spanning, category management approach (Driedonks, 2010;Englyst et al, 2008;Schotanus and Telgen, 2007).…”