Achieving purchasing competence through purchasing performance measurement system design—A multiple-case study analysis

Pohl, Mathies; Förstl, Kai

doi:10.1016/j.pursup.2011.04.001

Cited by 46 publications

(41 citation statements)

References 57 publications

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“…Krause et al (1998), Zsidisin and Ellram (2001), Pohl andFörstl (2011), Spekman et al (1999), Smeltzer et al (2003) and Takeishi (2001) relationships takes many forms; joint problem solving using mutually acceptable methods of improvement, fostering the relationship to open up developmental opportunities, and ensuring there are avenues to innovate together (Carr and Pearson, 2002). Such opportunities for learning are built on an increasingly codeveloped mechanism for exchange where buyers and suppliers share a common language (Nelson and Winter, 1982).…”

Section: Narasimhan and Dasmentioning

confidence: 99%

“…This reflects what Carr and Smeltzer (1997) and explain are reporting routines which inform top management about the performance of supply management, and their presence is reflective of good practice. According to Krause et al (1998) the internal control of a supply management capability uses routines assessing both qualitative as well as quantitative measures of performance, whilst the assessment of performance requires clearly defined targets and a processes by which data will be collated (Pohl and Förstl, 2011). The assessment process should also track accountability, with Hartmann et al (2012) outlining various stages of evolution to ensure, at the routines level, supply management is kept accountable.…”

Section: Narasimhan and Dasmentioning

confidence: 99%

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Supply management capabilities, routine bundles and their impact on firm performance

Day

Lichtenstein

Samouel

2015

International Journal of Production Economics

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a b s t r a c tDespite the generally positive contribution of supply management capabilities to firm performance their respective routines require more depth of assessment. Using the resource-based view we examine four routines bundles comprising ostensive and performative aspects of supply management capabilitysupply management integration, coordinated sourcing, collaboration management and performance assessment. Using structural equation modelling we measure supply management capability empirically as a second-order latent variable and estimate its effect on a series of financial and operational performance measures. The routines-based approach allows us to demonstrate a different, more finegrained approach for assessing consistent bundles of homogeneous patterns of activity across firms. The results suggest supply management capability is formed of internally consistent routine bundles, which are significantly related to financial performance, mediated by operational performance. Our results confirm an indirect effect of firm performance for 'core' routines forming the architecture of a supply management capability. Supply management capability primarily improves the operational performance of the business, which is subsequently translated into improved financial performance. The study is significant for practice as it offers a different view about the face-valid rationale of supply management directly influencing firm financial performance. We confound this assumption, prompting caution when placing too much importance on directly assessing supply management capability using financial performance of the business.

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Section: Narasimhan and Dasmentioning

confidence: 99%

Section: Narasimhan and Dasmentioning

confidence: 99%

Supply management capabilities, routine bundles and their impact on firm performance

Day

Lichtenstein

Samouel

2015

International Journal of Production Economics

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“…The research question have already been formulated in the section introduction. Pohl and Förstl (2011) have already been successfully used a case study approach for analysing a purchasing-variance measurement system for the analysis of a general purchasing performance measurement system.…”

Section: Methodsmentioning

confidence: 99%

Purchasing manages and optimises existing product variance

Nabhani

Uhl

Kauf

et al. 2018

JMTM

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Purpose -The purpose of this paper is the presentation of a new optimisation approach for product variance from the purchasing perspective. Design/methodology/approach -The research is based on a case study of a collaboration with a global acting automotive Tier 1 supplier, who produces steering systems for cars and commercial vehicles. A total of 116 different variants of three components of a car automotive steering system were analysed and evaluated. The data was gathered from 13 sub suppliers for three different types of a steering system. Findings -Unnecessary time, money, quality and technology can be saved through a greater understanding of such product variances. The results of the case study lead to a general method to optimise existing product variance and present cost improvements and a new key performance indicator to manage product variance out of the purchasing department. Research limitations/implications -The research is based on a purchasing case study at a Tier 1 supplier of the automotive branch. The approach can be used for other company departments like e.g. logistics and for different industries than automotive. Practical implications -A company can be successful and competitive when it meets the customer needs with a maximum on satisfaction without generating of waste. Unnecessary existing product variance is a kind of waste. The insights of this article support the operative user and the strategic company management to reduce and improve unnecessary variance in different sections. Originality/value -The structured analysis of product variance from the purchasing perspective and the key performance indicator "variance share" are new to company management. The research focuses on the management of existing variance out of the purchasing department which is a segment that has received limited academic attention in research to date.

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“…The research questioning (RQ1) have already been formulated in the section introduction. As a reference, Pohl and Förstl (2011) have been successfully in their case study, which analyses a purchasing-variance measurement system for the analysis of a general purchasing performance measurement system.…”

Section: Case Study 41 Research Designmentioning

confidence: 99%

Supply chain process optimisation via the management of variance

Nabhani

Uhl

Kauf

et al. 2018

Journal of Management Analytics

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This paper presents a new optimisation approach for variance within a supply chain management process. The approach is presented by the variance cube of purchasing that involves a lean method for variance optimisation, namely the cost and variance driver analysis. The approach focuses on the optimisation and the control of existing process variance within the supply chain. The application of the cube is presented by a case study involving a globally acting Tier 1 supplier, who produces steering systems for passenger cars and commercial vehicles. In this case, the sourcing process of this Tier 1 supplier will be analysed, evaluated and optimised regarding variance. The variance is presented in form of the number of suppliers who are involved in the sourcing process. Unnecessary existing process variance, like an unnecessary huge number of suppliers within the sourcing process, is a type of waste. Time, money, quality and technology can be saved through a greater understanding of the optimal number of suppliers within a sourcing process. The results of the case study lead to a generalised method to optimise the existing process variance, present cost improvements as well as optimising the key performance indicator to manage the number of suppliers in the sourcing process. The general approach can be used for other company departments like logistics and for different industries other than automotive. The insights of this article support the operative user and the strategic company management in order to reduce and improve unnecessary variance in different sections. The structured analysis of supply chain process variance via the variance cube of purchasing and the key performance indicator "optimal supplier number per sourcing process" are new to company management.

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Achieving purchasing competence through purchasing performance measurement system design—A multiple-case study analysis

Cited by 46 publications

References 57 publications

Supply management capabilities, routine bundles and their impact on firm performance

Supply management capabilities, routine bundles and their impact on firm performance

Purchasing manages and optimises existing product variance

Supply chain process optimisation via the management of variance

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