Description

Strategic Intent

Literature

Process re-engineering

Re-engineering effort should focus on internal and external processes to minimize effort and improve performance. Buying companies can adjust processes to better fit supplier processes.

Cost of acquisition

Functionality

Performance reliability

Durability

Lead-time to delivery

[8]

Process automation

Automate the (already simplified) processes.

Cost of acquisition

[52] [53]

Delegating call-off responsibility

Items low risk and low value; purchasing function staff do not add value to daily purchasing operations. Responsibility delegated to end-users.

Cost of acquisition

[54]

Purchasing cards

Issue purchasing cards to nominated staff within company.

Cost of acquisition

[55]

E-commerce

Set up account with supplier enabling online purchases. Can be affected by intermediary website availability, internet auctions, and high number of transactions with single suppliers.

Cost of acquisition

Purchase price

Lead-time to delivery

[51] [56] [57] [58] [59] [60]

Consolidated billing

Reducing frequency of invoicing and costs (time and effort in payments).

Cost of acquisition

[61]

Benchmarking against industry norms

Compares arrangements offered by suppliers.

Purchase price

[62] [63] [64]

Capture supplier expertise and innovation

Pool company and supplier knowledge and expertise.

Total cost of ownership

Functionality

Performance reliability

Durability

Image

[5] [66] [83] [84]

Quality planning

Details the processes and procedures used in design and manufacture, along with inspection and testing requirements if quality is a risk factor.

Performance reliability

Adaptability and flexibility

Durability

Image

[67] - [79]

On-site supplier support and training

Developing supplier knowledge and capabilities.

Performance reliability

Adaptability and flexibility

Durability

Functionality

Lead-time to delivery

[8] [80] [81] [82]

Supplier account manager

Provides company focal point to manage supplier relationships (“good customer”).

Continuity of supply

[8] [86]

Demand forecasting and early phased release of specification information

Used to slot requirements into the supplier’s production schedule, reducing the risk of delayed delivery, facilitating more reliable contractual commitments to suppliers.

Lead-time to delivery

[80] [82] [87]