articles, journals, e-books etc.

Strategic Service Purchasing – A Jumpstart to Success

Like last year, during the course Purchasing at the RUG, 2 interesting E-books were written. YPP was already invited during the event, but now also the e-books can be read clicking the link at the end of this post.

Preface of the e-book “Strategic Service Purchasing – A Jumpstart to Success”

Whether we call it Purchasing, Procurement, Supply Management, Sourcing or Buying – it is evident that activities, tactics and strategies associated with such terms are of great importance to organizations. Looking at job advertisements, skilled and highly educated Purchasers and Supply Managers are in demand. Hence, academia and practice work together to further grow the function as there remain many challenges and possibilities for improvements. In line with the developments in the field, we asked 21 international MSc students to plan, write and deliver an academic book on Strategic Service Purchasing.

We proudly present the resulting E-book of this year’s project “Strategic Service Purchasing – A Jumpstart to Success”. Based on literature reviews as well as case studies and examples the students have worked on different themes with the joint ambition to describe and discuss the state of the art of Strategic Service Purchasing today. While the book focuses on the developments in Strategic Service Purchasing and Supply Management it might also provide a presentation of a coming generation of purchasing professionals.

The course and the book could not have been realized without the support of the companies and people who kindly contributed their time for guest lectures and further information:
Sander Koopmans (Adjust), Hans Bax (UMCG), Ad Weterings (Gasunie) and Bauke Wierda (Koopmans).

Finally, we would like to thank all students involved. Your enthusiasm, curiosity, eagerness, cooperation and perseverance made it possible to carry out this book project (and in only 7 weeks)!

Groningen, April 2015,

Dr. Kirstin Scholten and Drs. Ing. Henk Faber
Department of Operations, Faculty of Economics and Business

to read the book, please download it here: PDF

Strategic Purchasing: A Global Perspective

Like last year, during the course Purchasing at the RUG, 2 interesting E-books were written. YPP was already invited during the event, but now also the e-books can be read clicking the link at the end of this post.

Preface of the e-book “Strategic Purchasing: A Global Perspective”

Whether we call it Purchasing, Procurement, Supply Management, Sourcing or Buying – it is evident that activities, tactics and strategies associated with such terms are of great importance to organizations. Looking at job advertisements, skilled and highly educated Purchasers and Supply Managers are in demand. Hence, academia and practice work together to further grow the function as there remain many challenges and possibilities for improvements. In line with the developments in the field, we asked 22 international MSc students to plan, write and deliver an academic book on aspects of globalization in relation to Strategic Purchasing.

We proudly present the resulting E-book of this year’s project – Strategic Purchasing: A Global Perspective. Based on literature reviews as well as case studies and examples the students have worked on different themes with the joint ambition to describe and discuss the state of the art of Strategic Purchasing today. While the book focuses on the developments in Strategic Purchasing and Supply Management it might also provide a presentation of a coming generation of purchasing professionals.

The course and the book could not have been realized without the support of the companies and people who kindly contributed their time for guest lectures and further information:
Sander Koopmans (Adjust), Hans Bax (UMCG), Ad Weterings (Gasunie) and Bauke Wierda (Koopmans).

Finally, we would like to thank all students involved. Your enthusiasm, curiosity, eagerness, cooperation and perseverance made it possible to carry out this book project (and in only 7 weeks)!

Groningen, April 2015,

Dr. Kirstin Scholten and Drs. Ing. Henk Faber

Department of Operations, Faculty of Economics and Business

to read the book, please download it here: PDF

“The more you spend, the more you save!”

In one of his first articles this year on Spend Matters Pierre Mitchell reminds us after the holiday season of the still existing ‘spavings’ in our daily life, but also in our lifes as procurement professionals.

Please check this interesting reminder of our added value as professionals here, and let’s think about …what if we only spent what we truly needed? What if we reduced consumption that didn’t impact customer value? What if we avoided the costs in the first place?

 

 

 

The Infuence of Technology on Strategic Purchasing

Technology is the application of scientific knowledge for practical orientated usage. It encompasses a wide range of different fields of business. This book refers an insight on IT and its influence on strategic purchasing. In recent years, technology became one of the most predominant factors for efficiency and effectiveness of a firm. Grover and Kohli (2012) argue that IT can be a co-creator of value, and this effect appears in four different aspects. It can be relationship specific and used as an asset. Second, it can be based on knowledge sharing. IT can complement capabilities and resources of the firm and lastly, it can have an impact on the effectiveness of governance. Therefore, it is interesting to analyse the influence of technology on strategic purchasing because IT is transforming the way that business is conducted.

For instance, the internet changed the patterns of daily work. The spread of information, prices, offers, etc. affects the competitiveness and structure of each business. That is the reason why firm’s had to change their purchasing strategy due to rapid changes in the development of IT. The speed in how fast information spread all over the world changed communication channels, for instance, by using the internet for supplier contacts. The Korean case study is an example how by making use of Internet, a successful e-procurement system was launched nationwide, and acknowledged worldwide for its success. All these changes in the environment of strategic purchasing motivates us to investigate a deeper look on the influence of IT on strategic purchasing.

In addition, strategic purchasing will, throughout the book be defined as Talluri & Narasimhan (2004) argue it to be. They state that strategic purchasing deals with managing the supply base in an effective manner by identifying and selecting suppliers for strategic long-term partnerships, involving in
supplier development initiatives by effectively allocating resources to enhance supplier performance, providing benchmarks and continuous feedback to suppliers, and in some cases involving in supplier pruning activities. Implications which can be derived from this definition are at first that purchasing is more than just buying materials which the internal client needs. Strategic purchasing and therefore this book delivers insight into the most important fields of purchasing. (Global) sourcing strategies, contract management, risks management, sustainability, supplier relationships, service purchasing will all be elaborated upon. The interest of writing a book is based on fundamental changes within this field according to the input of IT, today.

However, in the past, purchasing was at the bottom of interest for a firm at the beginning of the last century, purchasing was just considered as less important topic within a company (McIvor, Humphreys & McAleer, 1997). Purchasing was only referred to by obtaining raw materials and to keep factories operating. In the 1960s and 70s the importance of purchasing departments increased by more integration with automatic processes and material orientated businesses (Spekman, Kamauff & Salmond, 1994; Ellram and Carr, 1994). Finally, the connection between purchasing strategy and firm performance began to establish as of the 1980’s due to its direct impact on the products’ final costs (Easton, Murphy & Pearson, 2002). Effective purchasing strategies seem to differ across industrial sectors (Pagell, 2004). Companies realized that when purchasing assumed a more strategic role in the organization, can guide them to a ompetitive position (Lamming, 1993; Gadde & Hakansson, 1994), of which the case study of Apple is a classic example of perfection (Monczka, Handfield, Guinipero, Patterson & Waters, 2010). Since then, businesses moved from industrial mass production in manufacturing to servitization and individual supply (Raddats & Easingwood, 2010; Vandermerwe & Rada, 1988). Additionally to this historical development in purchasing, the importance of technology on strategic purchasing also emerged in recent years. At the beginning of 2000 purchasing evolved into strategic sourcing.

Nowadays, firms continuously improve and re-evaluate their purchasing activities. Supplier contracts on a long-term basis are more efficient (Gadde and Snehota, 2000), structured supplier data bases emerge and building sustainable supplier relationship receives more attention. The first decade of the 21st brought an explosion of technologies and strategies. Firms recognize the importance of each expenditure, and its subsequent impact on value creation. Purchasing becomes a major source of increased profits for each firm. Today, it is more than necessary to understand that strategic purchasing is not an event, but an ongoing process that is interconnected with IT.

To download this book, please use the following link: PDF

Strategic Purchasing – On our way to sustainability

There is a growing awareness of Purchasing and Supply Preface Management contribution to a company’s competitive advantage. Over the past decades, the field of Purchasing has fundamentally evolved from a narrowly defined business activity into an area of increasing interest and strategic importance, for industries and academia. Consequently, the demand for highly educated and skilled managers with Purchasing knowledge has been growing also.

In line with the developments of the field of Purchasing, we have decided to approach Master Course Purchasing in a new way for the second time in a row. Differently to ‘regular’ lectures and tutorials, students were challenged to plan and execute a book writing project engaging them in active learning by doing.

We proudly present the resulting E-book of this project – Sustainable Strategic Purchasing – written by 23 international students in Management Science between February and April 2014. Based on literature reviews as well as case studies and examples the students have worked on different themes with the joint ambition to describe and discuss the state of the art of Purchasing today. While the book focuses on the developments in sustainable strategic Purchasing and Supply Management it might also provide a presentation of a coming generation of purchasing professionals.

The course and the book could not have been realized without the support of the companies and people who kindly contributed their time for guest lectures and further information: Sander Koopmans (Adjust), Ad Weterings (Gasunie Groningen), Michiel Aarts (Unilever), Hans Wortmann (University of Groningen) and Hans Bax (UMCG).

Finally, we would like to thank all students involved. Your enthusiasm, curiosity, eagerness, cooperation and perseverance made it possible to carry out this book project (and in only 7 weeks)!

Groningen, April 2014,

Dr. Kirstin Scholten and Drs. Ing. Henk Faber

Department of Operations, Faculty of Economics and Business

to read the book, please download it here: PDF