Summary

Purchasing Management articles summary

1 purchase

Course
Purchasing Management

Institution
Tilburg University (UVT)

Year Purchasing Management Summaries of the following articles: 1. When manufacturing moves back: concepts and questions (Fratocchi et al.) 2. Achieving excellence in global sourcing (Trent & Monczka) 3. Services supply management (Ellram et al.) 4. Transaction cost theory in ITO (Alaghehband et ...

[Show more]

Preview 2 out of 10 pages

View example

Uploaded on November 14, 2018
Number of pages 10
Written in 2018/2019
Type Summary

purchasing management
articles
supply chain
scm
ito
buyer supplier
dependence asymmetry
life cycle theory
imp based
relational governance
trust

Institution
Tilburg University (UVT)
Education
Supply Chain Management
Course
Purchasing Management

6048502

Member since 9 year 72 documents sold

$12.91

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

Purchasing Management – Articles SUMMARY
1. When manufacturing moves back: concepts and questions (Fratocchi et al.)
2. Achieving excellence in global sourcing (Trent & Monczka)
3. Services supply management (Ellram et al.)
4. Transaction cost theory in ITO (Alaghehband et al.)
5. Extending the offshore outsourcing service portfolio (Beulen et al.)
6. Gartner’s 30 Leading locations for offshoring (Marriott)
7. Lessons from Dutch IT outsourcing (Delen et al.)
8. Revisiting the interplay between contractual and relational governance (Cao & Lumineau)
9. Buyer-Seller interaction for cleaning services (vd Valk & Wijnstra)
10. Portfolios of buyer-supplier relationships (Bensaou)
11. Dependence asymmetry and joint dependence (Gulati & Sytch)
12. Developing buyer-seller relationships (Dwyer et al.)
13. Testing a life-cycle theory of cooperative interorganizational relationships (Jap & Anderson)
14. Developmental process of cooperative interorganizational relationships (Ring & vd Ven)
15. IMP-based research (Johnsen et al.)

1. When manufacturing moves back: concepts and questions (Fratocchi et al., 2014)
Problem: Lack of academic papers on the back-reshoring trend
Solution: Shared definitions including extent and causes of types of shoring
Conclusion: why, where, what, how wrt back-reshoring still to be investigated

The reversal of off-shored decisions are growing. However, in the academic world there is a lack of a shared
definition, full understanding of the extent and causes, and a model to predict future trends.

Manufacturing back-reshoring = decision to relocate in the firm’s home country production or supply that was
previously offshored.
Reshoring = a generic change of location with respect to a previous offshore country.
Further offshoring = widening the geographic scope of off-shoring
Near-shoring = locate production in a foreign country in the same region
Near-reshoring = transferring production to another country that is geographically closer to the home country

Motivations for back-reshoring: loss of flexibility, ability to deliver on time → supply chain issues, quality, “error
view” (deterioration of initial advantages), government trade policies.

Further research should focus on: WHY (motivations for back-reshoring), WHERE (home vs foreign locations
advantages), WHAT (back-reshored activities), HOW (entry/exit modes)

2. Achieving excellence in global sourcing (Trent & Monczka, 2005)
Problem: Most organizations do not have well-developed global sourcing strategies in place.
Solution: Key features that characterize leading global sourcing organizations
Conclusion: Executive commitment, processes, resource availability, IT integration, organizational design,
communication and measuring savings.

Global sourcing = an advanced approach to sourcing and supply management that involves integrating and
coordinating common materials, processes, designs, technologies and suppliers across worldwide buying, design and
operating locations.

Five levels of sourcing: a continuum
Level 1: Domestic purchasing
Level 2: International purchasing only as needed
Level 3: International purchasing as part of sourcing strategy
Level 4: Global sourcing strategies integrated across worldwide locations
Level 5: Global sourcing strategies integrated across worldwide locations and functional groups
→ fundamental difference between ‘international purchasing’ (commercial transaction) and ‘global sourcing’
(integration and coordination of common materials/processes/tech/suppliers worldwide)
1

, Characteristics of global sourcing excellence
1. Executive commitment
2. Rigorous and well-defined processes (→ ones that requires participants to establish goals, meet milestones
and report progress as well as ‘lessons learned’).
3. Availability of needed resources
4. Integration through IT (data warehouses, intranet, contract repositories)
5. Supportive organizational design (executive steering committee, cross-functional project teams, separation of
strategic/operational activities)
6. Structured approaches to communication (face2face, electronic, strategy sessions, progress reports)
7. Methodologies for measuring savings (support calculation of companywide savings from global agreements,
ROI, ROA, impact on performance)

3. Services supply management (Ellram et al., 2007)
Problem: Cost and value within the service industry should be improved, but there are some barriers
Solution: Overcome the barriers by understanding services spending, segmenting, allocating proper resources,
increasing professionalism and using business controls.
Conclusion: Improved services supply management by dedicating more + the right resources is a new frontier.

Developing an outstanding capability for managing the purchase of services could truly be the next frontier for
improved organizational performance.
Supply managers can improve cost controls, minimize value leakage, and assure that firms are receiving more value as
well as competitively priced offerings.

Barriers to be addressed to improve services purchasing
➢ Lack of resources focused on services. Although there is a focus on cost management when buying materials,
this is not the case for services.
➢ Lack of IT support
➢ Knowing when to outsource (TCE)
➢ Limited understanding of cost drivers and structures
➢ Fragmented spending: services purchasing is often decentralized, which leads to lack of clear SLA and scope
creep.
➢ Growing supply base: rather than a supply base reduction (which shows to be a better solution: leverage costs,
improvement opportunities, relationship building and less administrative burden), the opposite is recorded.

Outcomes of poor management of purchased services
➢ Financial implications
➢ Opportunistic supplier behavior: high level of complexity and loopholes in services contracts + hard to detect
and prevent changes in delivery vs contract.
➢ Process flaws: no objective, physical evidence in summary invoices

What to do about it?
➢ Understand the magnitude of the services purchasing spending
➢ Segment the purchasing spending based on value and risk. Not all purchases should receive equal attention.
➢ Allocate appropriate resources relative to economic return. Take a spending category that is large, fragmented
and not very controversial to start your services supply management transformation.
➢ Increase the professionalism of the services purchasing area. This takes time.
➢ Measure effectiveness and ensure proper business controls. Getting the right tools developed and in place.
This includes periodic supplier audits, installing control systems and developing better services contracts.
➢ Put the best people in services supply management. Commitment!

2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller 6048502. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.91. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Summary

Purchasing Management articles summary

Document information

Subjects

Written for

Seller

Reviews received

Content preview