Implementing sustainable purchasing and supply management (SPSM): A Delphi study on competences needed by purchasing and supply management (PSM) professionals

This research is about a Delphi study that was conducted in the context of the development of a competence model for sustainable purchasing and supply management (SPSM). Based on the findings of a systematic literature review (SLR), it addresses the research gap in this area with the aim to foster the integration of sustainability in purchasing and supply management (PSM) in higher education and in professional training approaches for PSM professionals. The qualitative study was conducted with 16 Delphi experts in the field of PSM and sustainability, applying the critical incident technique (CIT). Together with the findings of the SLR, it led to a specific set of SPSM competences. The theoretical background is based on PSM research, educational sciences and organizational psychology.     

Managing the global supply base through purchasing portfolio management

‘How to source globally’ has become a critical strategic decision for companies competing on a global basis. Despite an increased focus on global sourcing and supply chain management, little is known about the challenges and solutions surrounding such sourcing practices. Extant literature points at the critical importance of developing and sharing knowledge in multinational companies (MNCs). However, little work has been undertaken to examine the organizational mechanisms used by MNC headquarters for knowledge leveraging across subsidiaries, especially in the area of purchasing and supply management. Based on an in-depth case study, focusing on a chemical company, the actual buying systems for managing the global supply base are explored. Kraljic's purchasing portfolio approach appears useful, both for developing effective purchasing strategies as well as for managing a global supply base.     

Sex and salary: A survey of purchasing and supply professionals

The purpose of this paper is to test a series of hypotheses, derived from compensation theory, on predictors of purchasing and supply management salaries. One of the hypotheses, on the effect of sex on salary, assesses competing theories, i.e. human capital versus discrimination. These hypotheses are tested using the results of a survey on purchasing and supply management salaries in Canada. Six variables were found to be significant predictors of salary. Purchasers with a professional designation, more education, more experience, greater spend responsibility, at larger organizations, and with greater share of compensation coming as a bonus reported larger salaries. In addition, after controlling for these human capital and organizational context variables, sex had a significant impact on salary. Male purchasing and supply managers reported earning significantly higher salaries than their female counterparts. The paper concludes with implications for purchasing employees and employers, along with discussion of future research opportunities.     

Getting back into the swing of things: The adaptive path of purchasing and supply management in enhancing supply chain resilience

The COVID-19 crisis posed significant challenges to global supply chains (SCs) and exposed their vulnerability to disruption. As SCs have evolved into complex structures comprising a multitude of globally dispersed companies that collaborate closely with one another, purchasing and supply management (PSM) have played a key role in addressing the crisis. The existing PSM measures for increasing supply chain resilience (SCRES) were stress tested and it became evident that these methods are applicable only to a limited extent due to their static perspective and their lack of a network character. Thus, this paper examines the role of PSM by identifying implemented response measures. By conducting 40 semi-structured interviews with experts from original equipment manufacturers and first-tier suppliers in the German automotive industry, a comprehensive overview of the industry was obtained. To reflect the network nature of the industry and the adaptive path of PSM, the data analysis is framed by resource dependence theory and the adaptive cycle approach. The results of the study are 25 response measures of PSM to enhance SCRES, categorized into three waves of measures: initial measures upon the occurrence of the disruption, temporary measures during the disruption, and post-disruption measures. In this way, the study contributes to the existing literature by demonstrating that PSM takes on a major role in increasing resilience by implementing diverse response measures. In addition, the study shows that PSM follows the path of an adaptive cycle, and that after the disruption and the initial and temporary measures, PSM adapts, which is reflected in the post-disruption measures. For practitioners, the study provides a list of response measures to increase resilience that can be used to review existing measures or implement new ones.     

An analysis of research into the future of purchasing and supply management

Business organisations are going through rapid external environmental and internal organisational changes due to increasing globalisation, E-business, and outsourcing. As a result, the future of purchasing and supply management—as a function within organisations, as a process that spans organisation boundaries and as a profession—raises important concerns for both organisations and the purchasing professional. This paper considers a broad and rather fragmented body of empirical evidence and analyses 42 relevant empirical studies on the future of purchasing and supply management. The major findings are reported in terms of changes in business contexts, purchasing strategy, structure, role and responsibility, system development and skills. Cross-sectional comparative analyses were also conducted to examine variation by sector, firm type, people's roles in purchasing, and country. A number of major implications for the purchasing function, process and professional bodies are presented together with suggestions for future research to address significant gaps in the current body of knowledge.     

Gaining from disorder: Making the case for antifragility in purchasing and supply chain management

The purchasing and supply chain management (P&SCM) discipline assumes that supply chains are fragile systems, hence taking a “negative” approach toward disorder. Building on Taleb’s concept of antifragility—the ability to gain from disorder rather than avoiding it—, we challenge this traditional assumption. The COVID-19 pandemic has revealed that some companies were indeed able to gain from disorder, whereas some of those that focused too much on robustness and resilience lost ground. Building robust and resilient supply chains may no longer be enough to thrive in today’s highly volatile business world. This article sparks a new debate by introducing antifragility to the P&SCM literature and provides new directions for future research.     

Developing design principles for the digitalisation of purchasing and supply management

This paper develops an approach to evaluating designs for digitalisation interventions in purchasing and supply management (PSM), and identifies some fundamental design principles for such interventions. A set of advanced technologies for digitalisation and a theory-based set of seven value drivers for PSM are identified for the proposed grid to facilitate the design of applications and interventions for digitalising PSM. The grid relates the digital technologies to the PSM value drivers in a matrix-like manner, allowing the structured consideration of the space defined by these two dimensions. The proposed approach to the strategic evolution of digitalisation in PSM is tested and its utility is demonstrated in analyses of practitioner literature and multiple case-study-based perspectives on PSM digitalisation. Two fundamental design principles relating to the use of the grid, or to the filling of its space, are set out, thus the research provides new theoretical perspectives on the design of advanced forms of PSM digitalisation. The proposed grid may be used in application design, communicating current and future states of PSM digitalisation to stakeholders, and specifically in developing a future-oriented strategy with a digitalization element for the PSM function.     

Guest Editorial: A purchasing and supply management view of supply resilience for better crisis response

Purchasing and supply management (PSM) has been under great pressure since the COVID-19 pandemic first shook the world. Companies and public organizations faced new kinds of supply disruptions, and at a scale never seen before. New response abilities were required from PSM to address these challenges and disruptions. This Editorial introduces four articles in the Special Issue on “PSM learning from the pandemic: transforming for better crisis management.” These empirical contributions show how companies could build resilience to survive and be competitive during the COVID-19 pandemic. This Editorial discusses how supply resilience should be conceptualized in post-pandemic supply chains adopting a PSM perspective. We suggest that supply resilience practices should be developed and planned according to whether they strengthen existing supply chain relationships (bridging) or establish new ones (buffering) and whether they are short-term (temporary) or long-term (permanent) orientated. Furthermore, three supply resilience capabilities, absorbing, responding and capitalizing, should be prioritized in supply chains for responding to and recovering from global crises and disruptions. Supply resilience is key to crisis response and recovery, and PSM has an essential role in building and sustaining that resilience.     

Purchasing and supply management (PSM) competencies: Current and future requirements

Purchasing & Supply Management (PSM) competencies are the individual-level foundations of organisational PSM performance. In light of recent developments in the workplace and the external environment, the question of what PSM competencies are needed now, as well as in the future, becomes one of increasing importance. Analysing qualitative data from 46 interviews from 16 companies, this paper identifies what current and future competencies are required by PSM professionals, categorizes PSM competencies according to the framework established by Tassabehji and Moorhouse (2008) and establishes how these competency requirements have changed over the last ten years. The most important current competencies required by PSM professionals are negotiation, communication and relationship management (e.g. ‘Interpersonal communication’), strategy and analytics (e.g. ‘Strategic thinking’), as well as professional knowledge requirements (e.g. ‘Basic knowledge on PSM role & processes’). When looking at future requirements, competencies in the areas of sustainability and digitisation were identified as becoming increasingly important. Overall, 17 competencies in addition to those shown in Tassabehji and Moorhouse (2008) were identified. The most prominent new competency areas are related to digitisation (e.g. ‘eProcurement Technology’, ‘Automation’), innovation (e.g. ‘Innovative sourcing’) and sustainability. The interviewees also identified 11 new competencies within the interpersonal skills cluster, most of them at the intersection between competencies and traits (e.g. ‘Deal with Ambiguity’, ‘Curiosity’, ‘Passion’).     

Practices and strategies for sustainability-related risk management in multi-tier supply chains

This study investigates how sustainability-related risks are managed in multi-tier supply chains. It focuses on the strategies and practices that companies use to manage sustainability-related risks and how these differ between supply chains and supply chain tiers. We use a multiple-case study with 25 companies forming 5 multi-tier supply chains. As a result of this study, we present a conceptual framework for sustainability-related risk management practices in multi-tier supply chains and apply it empirically by defining sustainability-related risk management profiles for the case supply chains. We show that in multi-tier supply chains, companies need direct and indirect collaboration and direct and indirect monitoring practices for managing sustainability-related risks emanating from not only their first-tier suppliers but also lower-tier suppliers. Our framework helps purchasing and supply chain managers understand the dimensions of sustainability-related risk management in a multi-tier setting and develop strategies and practices for mitigating and managing those risks. We also empirically show the challenge of extending sustainability-related risk management practices beyond first-tier suppliers due to the different practices in different supply chain tiers.     

Strategic supply and the management of inter- and intra-organisational relationships

As companies attempt to shed old habits and begin to view procurement as a strategic resource from which a competitive advantage can be gained, there is a great deal of corporate baggage that must be shed. More importantly, there is a new mindset that must be instilled both in procurement and across the firm. Strategic supply symbolizes the importance of enterprise wide thinking where functional units inside the firm and key suppliers from the firm's supply chain all work in concert to bring value to the marketplace. This paper presents data from the US and the UK that helps us better understand and address issues that are key to managing across independent supply chain partners. We also address some of the barriers to implementing such a supply strategy. These barriers exist inside the firm as well as between the firms at its key suppliers. Whilst we acknowledge that progress is being made, however the data suggest that the journey is far from over.     

Developing cost management in customer–supplier relationships: three case studies

This study describes cost management development projects in three customer–supplier relationships and analyzes these projects from the perspective of relationships. Differences in suppliers’ objectives, actions taken, and results gained in the projects were found in the explorative study, although the customer's objective was the same in all cases. The use of cost information depended on the balance of power between firms, on the trust between personnel, and on the volume of the firms’ mutual business.     

Core issues in sustainable supply chain management – a Delphi study

Sustainable supply chain management has emerged as a growing topic, receiving increasing interest in the sustainability and supply chain management area. So far, the field is dominated by either case or survey based research. Few attempts have been made to take a broader look at the overarching issues, which form core topics of sustainable supply chain management. This paper presents the findings from a Delphi study where experts were asked to contribute their opinion. The Delphi study allows an aggregation of these opinions and extracts underlying topics in a structured manner. Four major topics were identified, which are (1) pressures and incentives for sustainable supply chain management, (2) identifying and measuring impacts on sustainable supply chain management, (3) supplier management (particularly addressing issues at the supplier–buyer interface) and (4) supply chain management (dealing with issues across all companies involved in the supply chain). The research presented contributes to substantiating and consolidating the field of sustainable supply chain management. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Critical challenges of inventory management in service parts supply: A Delphi study

The primary purpose of the study is to determine the critical challenges facing service parts managers and to help bridge the gap between research and practice. In order to accomplish this, a series of semi-structured interviews with 18 senior service parts managers from a variety of industries frequently dealing with service parts inventory issues was used as the basis of input for a web-based Delphi study. The results of the study include 18 commonly identified potential service parts inventory issues and ten key challenges for the service parts supply industry. The identified challenges should serve as a guide for both researchers seeking to contribute to the service parts body of knowledge and practitioners who are regularly faced with service parts inventory issues.     

Green multi-tier supply chain management: An enabler investigation

Stakeholder pressure, from actors including regulators, consumers and non-governmental organizations, has made organizations more responsible for poor environmental performance of their direct and sub-suppliers. Thus, green multi-tier supplier management (GMSM) has become an emergent topic. Yet it is still unclear how to enable GMSM practices effectively, i.e. how to enable sub-suppliers' environmental performance improvement. To help address the gap in the literature, this paper aims to identify enablers for sub-suppliers' environmental performance improvement, and it further applies a Decision-Making Trial and Evaluation Laboratory (DEMATEL)-based case study method to evaluate inter-relationships among these enablers and improve the focal company's GMSM practices, by using action research (AR) method principles. The data analysis and discussion with a follow-up evaluation after two years provided insights for the successful implementation of GMSM. The results show that top managers’ support from the organizations is a prominent and necessary foundational enabler. An interesting observation is that close proximity of supply chain members is regarded as a very prominent enabler. Evaluation and feedback on these enablers two years later found that the enabler mapping was beneficial, allowing them to address the most influential enablers, and thus the GMSM practices of the focal company has been highly improved. This paper concludes with directions for further research.     

Quality management practices and their relationship to buyer’s supplier ratings: a study in the Korean automotive industry

This research explores if quality management practices are different among suppliers whose performance is rated high, medium, or low by a common buying company and identifies which specific practices contribute to the differences. The entire population of first-tier suppliers to a Korean auto assembler was surveyed to measure use of quality management practices. Useable returns were received from 25% of the suppliers surveyed. To measure conformance quality and overall rating, suppliers were categorized into high, medium, and low performing groups based on the buying company’s data. Multivariate analysis of variance was done using general linear model (GLM-MANOVA) to explore differences in the high-, medium-, and low-performing supplier groups based on their use of quality management practices. No statistically significant differences were found when suppliers were categorized based on conformance quality. However, when categorized based on overall rating, the highest rated suppliers were found to emphasize process management and employee satisfaction to a greater degree than the lowest rated suppliers.     

Moving beyond a legal‐centric approach to managing workplace romances: organizationally sensible recommendations for HR leaders

The goal of this article is to encourage human resource (HR) leaders to think more strategically about managing workplace romances. The traditional legal‐centric management approach focuses on minimizing risks of workplace romances. We advocate embedding the legal‐centric approach within a broader and more strategic organizationally sensible approach that provides a balanced focus on minimizing risks and maximizing rewards of workplace romances. Drawing from the empirical workplace romance literature, we derive a set of organizationally sensible best‐practice recommendations that HR leaders can adopt to manage risks and rewards of romantic relationships in organizations. Implementing our more strategic recommendations should provide the added benefit of elevating HR professionals' roles as organizational leaders. © 2009 Wiley Periodicals, Inc.