Purchasing and Supply Management

Schiele, Holger

doi:10.1007/978-3-319-92447-2_4

Cited by 20 publications

(43 citation statements)

References 21 publications

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“…In addition, a sample of 139 suppliers of indirect materials to a food company was added to lend more support to the findings. In the absence of industrial production in the case of public organisations and, hence, direct materials (Schiele, 2019), a comparison of indirect materials seems adequate.…”

Section: Testing the Public Casementioning

confidence: 99%

Comparing public and private organisations in their quest to become a preferred customer of suppliers

Schiele

2020

JOPP

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Purpose In industrial procurement, the concept of supplier satisfaction has gained increasing attention. Satisfied suppliers have been found to provide better prices, more innovations and priority in bottleneck situations. This paper aims to analyses in how far the concept of supplier satisfaction can be transferred to the public procurement domain. Design/methodology/approach Two large quantitative data sets are compared, one from a sample of suppliers evaluating their industrial clients, the other from a public customer being evaluated by its suppliers. Findings The same criteria which explain supplier satisfaction with its customer, which are relevant in the private and industrial case also hold true for the public case, namely, growth opportunity, profitability, relational behaviour and operative excellence are important criteria for distinction. Only relational behaviour by the customer scored significantly higher in the public sample, indicating that this is more an influencing factor for public organisations. Research limitations/implications Showing the relevance of supplier satisfaction also for the public domain paves the way to further research better understanding how to measure satisfaction and how to increase suppliers’ satisfaction. Practical implications Buying organisations are asked to apply a form of “upstream marketing”, in which they actively try to promote their organisation with their suppliers and increase its attractiveness. This is a new way to get access to better services from suppliers. Social implications Analysing supplier satisfaction, on the one hand, allows to improve public purchasing acts, which generate social benefits in better using public money. On the other hand, caring for the well-being of suppliers is per se contributing to a socially more desirable world. Originality/value Supplier satisfaction is a new concept in the public procurement domain. This is the first paper to introduce this approach.

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Section: Testing the Public Casementioning

confidence: 99%

Comparing public and private organisations in their quest to become a preferred customer of suppliers

Schiele

2020

JOPP

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“…have added to the list of these six objectives, of Nollet et al (2005), a seventh objective owing to the "increasing resource scarcity challenges, stakeholder expectations and growing legal regulations regarding environmental and social concerns, PSM not only has to manage traditional objectives such as cost, time, quality and flexibility but is also faced with managing innovation and sustainability within supply chains" (Schulze et al, 2019, p. 3). Reflecting the understanding of purchasing as a strategic function, contributing to generating a competitive advantage and caring about the relationship towards suppliers and their satisfaction becomes further objective purchasers have to comply to (Schiele, 2019).…”

Section: Psm Objectives: Operational and Strategic Requirements For Psm Reflecting A Broad Scope Of Purchasing Objectivesmentioning

confidence: 99%

“…As the field of PSM is evolving and professionalising, it is also differentiating. Depending on the firm's strategy, PSM professionals have different targets, focuses or objectives (hereafter referred to as 'objectives') (Schiele, 2019), such as lowering the costs of supplies, acquiring innovative supplies or improving sustainability . A distinction between PSM's objectives in reducing supply costs and creating long-time value by accessing the suppliers' innovations can also be found in other, primarily innovations-directed, PSM literature.…”

Section: Introduction -Lack Of Clarity On the Importance And Selection Of Purchasing Skillsmentioning

confidence: 99%

Purchasing skills leading to success: how to succeed in innovation sourcing

Stek

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Procurement and purchasing -skills and competences -plus successIdeally, the title of a dissertation serves as the proverbial standard that covers the load. Here the title is short -PURCHASING SKILLS LEADING TO SUCCESS -which might raise questions on what is meant with 'purchasing', 'skills' or 'success' and especially, as the subtitle suggests, on HOW TO SUCCEED IN INNOVATION SOURCING. This research aims to present those necessary skills for success in the purchasing profession and innovation sourcing, and answers are given on how higher education institutions should address these in purchasing or procurement courses. However, the first issue is determining 'purchasing' or 'procurement'. Interestingly, the etymology of "to procure" stems from the old French (procurer) and means "care for, be occupied with; bring about, cause; acquire, provide". "Procurer" is associated with the late Latin "procuro", which means "to manage"; "take care of" or "carrying out responsibilities for others" (Wageningen & Muller, 1929, p. 766; own translation). In a more modern sense, it has the meaning to "obtain" or to "recruit" and got in the late Middle Ages the connotation "to obtain (women) for sexual gratification" (Etymonline, 2020). According to the modern dictionary, it still has this meaning besides obtaining possession by particular care and effort. 1 In this dissertation, procuring will be used in the meaning of purchasing.Alike "to procure," the term "to purchase" also has an old French origin: "porchacier" or the modern French variant "pourchasser", meaning to "run after", "to hunt (or) chase (for)". Modern meanings are to "acquire, obtain; get, receive; procure, provide," and also to "accomplish or bring about; instigate; cause, contrive, plot; recruit, hire" (Etymonline, 2020). Currently, the meaning of purchasing is obtaining by "paying

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“…Although studies on supply chain risk management and quality management are plenty, the academic literature examines these intertwined areas separately, recognizing both converge towards service improvement and customer satisfaction (Hou, 2019). In particular, so far the literature has investigated benefits for firms having a preferred customer status, and how it contributes to innovation and improve the strategic position of a firm, with a view to continuous improvement (Schiele, 2019). Actually, very few studies have focused on the theme of risk management associated with supplier-buyer relationships, with the buyer having the preferred customer status.…”

Section: Literature Reviewmentioning

confidence: 99%

The role of risk management in buyer-supplier relationships with a preferred customer status for total quality management

Pellegrino

Costantino

Tauro

2020

TQM

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PurposeThis paper provides a comprehensive risk management framework for buyer-supplier relationships where the buyer has the status of a preferred customer with the supplier.Design/methodology/approachEmpirical evidence is offered with a case study on a large multinational organization in the Fast Moving Consumer Goods (FMCG) industry, with some real-life perspectives on the main risks, mitigation strategies, and issues faced when applying the risk management framework.FindingsThe results show that several risks may affect buyer-supplier relationships: not only traditional supply risks but also risks linked to specific initiatives and/or relationships, as well as risks specific to buyer-supplier relationships with a preferred customer status. Customer attractiveness and supplier satisfaction are found as core drivers for the mitigation strategies, which are built to protect the relationship with the supplier, rather than the buying firm alone, knowing that being a preferred customer with preferential resources allocation may increase a firm’s competitive advantage.Originality/valueThe research brings important contributions to the academic literature and interesting insights to strategic purchasing practitioners, by enhancing the existing knowledge on supply risk management in buyer-supplier relationships with a preferred customer status, as well as providing strategic purchasing practitioners a comprehensive view of the risks, which may affect the relationships with a preferred customer status, as well as possible ways to mitigate them.

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Purchasing and Supply Management

Cited by 20 publications

References 21 publications

Comparing public and private organisations in their quest to become a preferred customer of suppliers

Comparing public and private organisations in their quest to become a preferred customer of suppliers

Purchasing skills leading to success: how to succeed in innovation sourcing

The role of risk management in buyer-supplier relationships with a preferred customer status for total quality management

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