The Relationship Between Purchasing and Supply Management's Perceived Value and Participation in Strategic Supplier Cost Management Activities

Abstract

As firms have placed more emphasis on their core competencies and outsourced production and services to suppliers, effective cost management of purchases has become a critical factor in achieving corporate success. The Purchasing and Supply Management (PSM) function is generally responsible for obtaining goods and services from outside suppliers. Techniques such as total cost of ownership, supplier cost structure analysis, and target costing have become important tools for PSM to manage inbound supply costs. Results of a survey indicate that the perceptions of PSM by peer functions and top management, in terms of PSM's importance and accountability, are related to implementing the strategic cost management activities of total cost of ownership, supplier cost structure analysis, and target costing.

An exploratory analysis of the relationship between purchase category strategies and supply base structure

“…Similarly, cost and innovation performance are also considered as two distinctive purchasing and supply chain performance outcomes (Blome et al, 2013;Craighead et al, 2009). As the traditional focus of purchasing was on cost reduction (Carter and Narasimhan, 1996;Zsidisin et al, 2003), it can be stated that firms are more experienced in structuring their supply base for cost strategy. Therefore, it is especially interesting to examine how a purchase category strategy focused on innovation impacts the supply base structure.…”

The Information Technology Capability of Third‐party Logistics Providers: A Resource‐based View and Empirical Evidence From China

“…Halldórsson and Skjøtt‐Larsen (2004) explored how to develop logistics competence through developing 3PL relationships. Zsidisin, Eliram and Ogden (2003) analyzed the relationships between purchasing and SCM's perceived value and strategic cost management.…”

Supplier Development: A Knowledge Management Perspective

“…Each is devised to subsume variations of the SD activity type, such as those exemplified in Table 3. For example, the co‐location (SD17) definition is designed to accommodate such variants as “assign support personnel to this supplier's facilities” (Wen‐li et al ., ; Humphreys et al ., ; Krause et al ., ), “co‐location of engineers to supplier facilities” (Krause et al ., ), “co‐located or ‘guest’ engineers” (Dyer, ), and “provide individual assistance to suppliers at their facilities” (Sako, ).…”

“…In the case of joint action (SDA29), the buyer and the supplier solve a problem together (Li et al, 2005), mutually develop alternative plans (Giannakis, 2008), reduce products/services' cost collectively (Zsidisin et al, 2003), and collaborate in materials improvement (Sanchez-Rodriguez, 2009). When the supplier is involved in the buyer's product development process (SD11), they together develop a new product through knowledge discovery.…”