Strategic Purchasing Planning

Interrelationships among key aspects of the organizational procurement process

“…Specifically, as shown in Table 4, allowing for an indirect effect of purchase importance through proactive focusing on search for information resulted in a path coefficient for the direct relationship between purchase importance and search for information that was somewhat smaller (0.28) but still statistically significant (p < 0.001). Cannon & Perreault, 1999;Homburg & Kuester, 2001;Newall, 1977;Sheth, 1973;Wilson et al, 1991 H 2 : Procedural control⇒Search for information (−) 0.03 (0.48) N/A Anderson et al, 1987;Bunn, 1993;Doney & Armstrong, 1996;Heide & Weiss, 1995;Lambe et al, 2000;Reve & Johansen, 1982;Robinson et al, 1967 H 3 : Procedural control⇒Proactive focusing (−) 0.00 (0.93) N/A Dobler & Burt, 1996;Frazier et al, 1988 H 4 : Search for information⇒Formal analysis (+) +0.28 (< 0.001) +0.26 (<0.001) Browning et al, 1983;Reve & Johansen, 1982 H 5 : Buyer power⇒Formal analysis (+) +0.16 (<0.01) +0.16 (<0.01) Clopton, 1984;Corey, 1978a;Porter, 1981Porter, , 1985Schwartz et al, 2001 H 6 : Proactive focusing⇒Formal analysis (+) +0.35 (< 0.001) +0.36 (<0.001) Doney & Armstrong, 1996;Feldman & Cardozo, 1969;Reve & Johansen, 1982;Robinson et al, 1967;Spekman et al, 1995;Staw, 1980 Control relationships (based on literature) Extensiveness of choice set⇒Buyer power (+) +0.46 (< 0.001) +0.46 (<0.001) Aldrich & Mindlin, 1978;Anderson & Narus, 1990;Cannon & Perreault, 1999;Iyer, 1996;…”

“…This relationship makes intuitive sense and is supported by evidence from several empirical studies. For example, buyers collect data on supply market trends and then use statistical procedures to extrapolate forecasts (Browning, Zabriskie, & Huellmantel, 1983)-often including others in the organization to gather information and evaluate technical aspects (Reve & Johansen, 1982). Just-in-time ordering, materials requirement planning, and other procurement systems are possible-not simply because of information technologiesbut also because of the availability of analytical tools to make the information meaningful.…”

Strategic Change in Procurement Orientation in the South African Automotive Industry: A Case Study

“…As a function, purchasing was claimed to be capable of being a source of competitive advantage for the business. Browning et al [7] proposed that purchasing could contribute to corporate strategy in four different ways: monitor supply market; interpret the meaning of these trends for the firm; identify the materials and services required to support the company and strategic business unit strategies; and develop supply options. Spekman [8] highlighted the contribution of purchasing in terms of strategic resources and the need to manage key materials in relation to product or market objectives of the particular businesses.…”

Joint-Base Contracting: A Comparative Analysis of Joint-Base Contracting Activities Between Services

“…This example could be made by developing strategic relationships with suppliers that could later be integrated into corporate strategy as purchasing is recognized as a strategic function. Purchasing can directly impact corporate strategy by providing options and insight into the supply market (Browning, Zabriskie & Huellmantel, 1983) and the appropriate management of supplier relationships (Landeros & Monczka, 1989). Ellram and Carr (1994) also discussed the importance and potential advantage of having purchasing activities support long-term corporate objectives.…”