From Purchasing to Supply Management: A Study of the Benefits and Critical Factors of Evolution to Best Practice
Supply management has received increased attention both in research and practice only recently. For decades, purchasing management was considered one of the least complex business functions. However, in a world of decreasing in-house value add in nearly all industries, it has become strategically critical for most companies to pay closer attention to purchasing spend. Many companies found that there is a lot more to have from suppliers than "the right goods at the right place at the right time". Several researchers investigating the transition from traditional purchasing to strategic supply management found a discrepancy between the general discussion of strategic supply management and reality in most companies. Given the well-known examples of high-performing purchasing organizations and the myriade of books both by researchers and practitioners on what good practices in supply management look like, this is an interesting observation. This dissertation investigates reasons for this discrepancy to help companies overcome the barriers of purchasing evolution. Michael Stolle combines organizational theories on organizational learning, resource-based view, and principal-agent conflicts to explain the challenges such a profound change of mindsets and culture presents. He develops a theoretical framework of purchasing evolution that shows the complex interactions of different driving factors that have to go together to make a successful transition possible. Finally, an interview-based empirical study is used to verify this framework empirically.
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Accenture Accordingly assessment behavior best practices Carr and Pearson category value creation chapter company performance contribution control variables core purchasing processes corporate cost reduction cross-functional cooperation structures cross-functional teams dimensions discussed EBITDA effect size Ellram empirical studies evaluation focus framework Gillingham hypothesized impact implementation implies indicators industries integration interview involvement of PSM Jahns Kaufmann latent variable measurement error mindsets and aspirations Monczka Morita and Uehara Narasimhan organizational learning partial least squares perceived PSM performance performance management performance measures performance outcomes potential PSM evolution PSM function PSM professionals PSM value creation purchasing and supply purchasing evolution purchasing function purchasing organization structure questions relationships relevant resource-based view scoring grid seems significant strategic involvement strategic supply management structural equation modeling supply chain Supply Chain Management supply management practices survey sustained competitive advantage Talent management targets theoretical theory top management validity value creation strategies