Outsourcing engineering commodity procurement

Parry, Glenn; James-Moore, Mike; Graves, Andrew

doi:10.1108/13598540610682453

Cited by 19 publications

(7 citation statements)

References 26 publications

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“…Third, whereas procurements system could be subjected to outsourcing for cost‐down implementation (Parry et al , 2006), managers should consider implementing e‐procurement systems because they can provide such benefits as the lowering of process and procurement costs (Puschmann and Alt, 2005). However, the benefits of e‐procurement implementation could depend on factors such as firm size (Pearcy and Giuniper, 2008).…”

Section: Conclusion and Managerial Implicationsmentioning

confidence: 99%

E‐procurement and supply chain performance

Chang

Tsai

Hsu

2013

Supply Chain Management: An International Journal

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PurposeThe aim of this study is to discuss the relationship between e‐procurement and supply chain performance.Design/methodology/approachBoth interviews with practicing managers and an empirical study were conducted in the current study. Interviews with four practicing managers were conducted to gather the practical insights of the theoretical framework. Empirical data were collected from 108 Taiwanese enterprises.FindingsThe paper found that partner relationships, information sharing, and supply chain integration can represent the processes through which e‐procurement contributes to supply chain performance. Supply chain integration has the highest standardized total effect on supply chain performance.Research limitations/implicationsFuture studies could more systematically analyze the relationships among e‐procurement, supply chain integration and supply chain performance. Cross‐level analysis is also worthy of investigation when considering the influence of technology‐usage characteristics.Practical implicationsCompared to partner relationships and information sharing, supply chain integration has more influences on supply chain performance. Therefore, this study suggests that a joint‐learning practice can be implemented for properly managing supply chains (e.g. know‐how collaboration, mutual competency creation).Originality/valueThis paper contributes to the literature by proposing and testing the influences of partner relationships, information sharing, and supply chain integration. This allows a strategic viewpoint when implementing e‐procurement systems intended to improve supply chain performance.

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Section: Conclusion and Managerial Implicationsmentioning

confidence: 99%

E‐procurement and supply chain performance

Chang

Tsai

Hsu

2013

Supply Chain Management: An International Journal

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“…Outsourcing has been recognized as a method to reduce costs and allow firms to focus on core activities and the scope of outsourced activities. While outsourcing with the intention to only reduce costs has been seen as short-sighted and unadvisable (Kakabadse and Kakabadse, 2002), outsourcing of engineering commodity item procurement can still have significant financial savings (Parry et al , 2006). There has been an increasing trend toward further investigation of purchasing and supply management based on rigorous research (Spina et al , 2013).…”

Section: Introductionmentioning

confidence: 99%

Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives

Shi

Arthanari

Wood

2017

SCM

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Purpose This research examines the opportunity for third-party logistics providers (3PLs) to develop further value-added services for their clients, focused on purchasing. The provider perspectives on third-party purchase (3PP) services are examined in conjunction with their business environment, with a survey informed by transaction cost economics (TCE). Design/methodology/approach New Zealand 3PL providers were surveyed and 166 responses were received. Structural equation modeling was employed to test the conceptual model. Findings From the perspective of 3PL providers, uncertainty, frequency, and transaction size, but not asset specificity, are significantly associated with client value from a 3PP service. While asset specificity in investments is not required by 3PLs, they need a high frequency of orders, sufficient order size, and low levels of uncertainty as supporting conditions for the development of 3PP services. Originality / value This study shows that 3PP services may be further developed by 3PL providers to improve the value offered to their clients. Research limitations The sample focuses on 3PL providers and therefore does not address the behavioral characteristics of users or customers of the services.

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“…It is defined as the complete or partial transfer of the business processes, infrastructure, and resources associated with procurement to a third-party service provider (Fernández and Kekäle, 2007). Because the procurement function is often labor intensive, an immediate benefit of procurement outsourcing is savings on direct labor (Parry et al, 2006). In addition, procurement outsourcing may enable SMEs to gain volume leverage as in cooperative purchasing.…”

Section: Introductionmentioning

confidence: 99%

“…Most studies of cooperative purchasing focus on public organizations and little attention has been given to industrial companies (Schotanus and Telgen, 2007). In the research stream of procurement outsourcing, we only see a few case studies (Parry et al, 2006;Fernández and Kekäle, 2007).…”

Section: Introductionmentioning

confidence: 99%

Third-party purchase: an empirical study of Chinese third-party logistics users

Shi

Zhang

Arthanari

et al. 2016

International Journal of Operations &Amp; Production Management

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Purpose – Third-party purchase (3PP) is a new value-added service offered by third-party logistics (3PL) providers. The purpose of this paper is to examine the perception of 3PP service from the perspective of 3PL users. Design/methodology/approach – The authors conducted a survey of Chinese 3PL users and received 242 usable responses. The authors then employed structural equation modeling to test the conceptual model. Findings – The authors found that the likelihood of 3PL users using a 3PP service is significantly associated with uncertainty, but not with asset specificity or frequency or transaction size. 3PP usage is significantly associated with value-to-client. Originality/value – This research is the first survey study of 3PP as a value-added service offered by 3PL providers, from the perspective of 3PL users. The findings suggest that 3PL users are very positive about the value of 3PP service. The 3PP market is still in its infancy but it has great potential, especially for commodity items that have less demand uncertainty.

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Outsourcing engineering commodity procurement

Cited by 19 publications

References 26 publications

E‐procurement and supply chain performance

E‐procurement and supply chain performance

Developing third-party purchase (3PP) services: New Zealand third-party logistics providers’ perspectives

Third-party purchase: an empirical study of Chinese third-party logistics users

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