Re-engineering Supply Chain Management Activities for High Performance — Process, Tools, and Results

International Supply Management Systems — The Impact of Price vs. Non‐Price Driven Motives in the United States and Germany

“…Internal coordination is a prerequisite for the effective bundling of purchasing volumes within the company. The cross-functional and cross-locational coordination of supplier selection decisions can be achieved through mechanisms such as corporate sourcing committees and commodity teams (Arnold 1999;Hausmann and Kaufmann 1999). As companies become increasingly aware of the fact that about 80 percent of a product's life-cycle costs are determined during the development phase, they practice simultaneous engineering through cross-functional development teams (Handfield 1993;Inman 1992;Murphy and Heberling 1996;O'Neal 1993).…”

“…Internal transparency regarding quantities, prices, supplier evaluations, shipping and packaging, and contracts is necessary for effectively negotiating with suppliers (Hausmann and Kaufmann 1999;Soellner and Mackrodt 1999). In the case of small and medium-sized companies, internal transparency is also a prerequisite for forming purchasing consortia (Essig 2000) with other companies for sourcing internationally (e.g., through joint international purchasing offices).…”