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] |