Purpose -This paper aims to uncover the specific difficulties associated with buying services and proposes a structured purchasing process which can help organisational buyers to overcome the problems associated with services purchasing. Design/methodology/approach -The authors investigate the supposed differences between goods and services procurement by means of literature research and a questionnaire distributed among Dutch purchasing managers. Additionally, they draw on experiences from additional case study research and business practice to better understand the results of the survey and to further explore the actual process of buying services. Findings -The results of the literature review and the survey show that developing a proper specification is an important prerequisite for purchasing services successfully. Based on these findings, an expansion to the traditional purchasing process is proposed which incorporates the steps of preselecting suppliers and detailing the initial specification.Research limitations/implications -The survey is limited to The Netherlands. Furthermore, the questions in the survey consider the respondent's perception and not the "truth". Practical implications -For organisational buyers, the importance of a proper specification implies that they should involve service providers early on in the service purchasing process. The service providers consequently can exercise the appropriate resources to develop a high quality solution, but need to be able to demonstrate this added value in these early phases of the services purchasing process. Originality/value -The paper adds to the discussion on buying services and tries to find out why this is perceived as complicated. It highlights three problem areas and proposes a solution to tackle these.
SUMMARY
This study was undertaken to address the need for empirical research for improving and sustaining corporate advantage through purchasing. This article explains how large corporations may effectively manage purchasing synergies among individual business units. It will become clear that in doing so, corporate purchasing officers (CPOs) need to tailor their approach depending on three constructs, i.e., purchasing maturity, corporate coherence, and business context. Based upon these constructs, they may select five different coordinating mechanisms to foster purchasing synergies within their corporation.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.