Preferred supplier programs for consulting services: An exploratory study of German client companies

Research has recently provided evidence that at least some companies have involved purchasing departments in buying professional services such as management consulting services. Some departments have established preferred supplier programs (PSPs) for consulting services, i.e., programs for consultancies with whom a company seeks to build up long-term relationships. While there are several studies that analyze such programs for suppliers of goods, research on business services is limited. Our aim is to present an exploratory analysis of PSPs for consulting services. Based on a survey of German client companies, we found that the most important reason for establishing PSPs is to reduce costs and transaction costs. Furthermore, our findings revealed that companies with and without PSPs for consulting services apply high significance to relational selection criteria. Moreover, in companies with PSPs, purchasing departments are more frequently involved in selecting consultancies compared to companies without PSPs. Finally, we found that companies with and without PSPs do not differ in their assessment of problems associated with the purchasing of consulting services. The study contributes to research on the purchasing of consulting services by indicating that the consultant–manager relationship should be extended to a service triad, involving purchasing professionals, managers, and consultants. Moreover, we contribute to research on PSPs by extending the focus to PSPs for knowledge-intensive service providers.     

Exploring early purchasing involvement in discontinuous innovation: A dynamic capability perspective

This paper aims to address the gap concerning our knowledge about early purchasing's involvement (EPI) in new product development (NPD) projects in contexts characterized by discontinuous innovation. We adopt a dynamic capability perspective to explore how existing sourcing and supplier relationship management capabilities are adapted when purchasing agents become involved in discontinuous innovations projects. We use an embedded case-study approach to study four NPD projects in a heating, ventilation, and air conditioning (HVAC) company. The case studies are based on interviews with managers and staff from the research and development, purchasing, and marketing departments, as well as suppliers involved in the projects. Our empirical findings capture emerging purchasing practices including a “reversed” sourcing process, purchasing-marketing interaction, and the coordination of “a learning atmosphere” between the R&D department and suppliers through proactive innovation meetings and creativity workshops. We derive propositions to conduct further research into the role of the purchasing department in times of discontinuous innovation. We also provide a framework of sourcing and supplier-relationship practices that firms can use when embarking on discontinuous innovation.     

Purchasing management consulting services—From management autonomy to purchasing involvement

The purchasing of management consulting services is a challenging area for purchasing agents to become involved in. A study of six organizations shows large variations in terms of the extent and way in which they were involved ranging from ad hoc and clerical approaches to their systematic and central participation. Based on a comparison of the cases, enablers of purchasing involvement are discussed, including the status of the purchasing function, managerial use of and attitudes towards consultants, how the management consulting service and the purchasing situation are framed, and the implementation strategy. We conclude that what are generally regarded as sound purchasing practices can also work in the case of management consultants. This, however, requires a good understanding of the consulting service in the client organization. We suggest that the traditionally marginal role of purchasing agents may be better understood as a consequence of the characteristics of the consultant–client relationship than any essential characteristics of the consulting service.     

Studying purchasing specialization in organizations: a multi-agent simulation approach

This paper reports on a series of multi-agent-based simulation experiments. The purpose of these experiments is to investigate how factors like task-complexity, availability of skills and corporate policies determine the degree to which a firm may benefit from a specific, dedicated purchasing department. Particular attention is paid to the purchasing of non-product-related items and services. Among the factors investigated are: corporate purchasing policies, available information, capacity of organizational members and the nature of the various purchasing activities. Preliminary results suggest that most of these factors impact on the degree of involvement of a purchasing department as well as the quality of the purchasing activities carried out. The results show the limits of Purchasing's added value and the importance of organizational learning in that respect.     

Organizing the purchasing department for innovation

Innovation is by far one of the most important competitive priorities in the current business context. Companies increasingly rely on their supply base to support their innovation potential. As a consequence, the purchasing department might dramatically affect the firm??s innovation capability. This paper aims to investigate??using a multiple case study approach??how the organizational design of the purchasing department could determine a firm??s capability to foster and manage innovation. Seven highly innovative companies were visited and the structures of their purchasing departments were analyzed. Three different configurations for the purchasing department were identified and described.     

Organizing IT purchases: Evidence from a global study

Information technology (IT) purchasing is covering an increasing part of companies’ expenditure. Scholars mainly investigated IT purchasing in terms of make or buy drivers from an IT perspective. Similarly, companies have been focusing on make or buy decisions and specifications definition in relation to technological characteristics. This often resulted in failures related to the goods/services purchased due to e.g. lack of negotiation skills, contracting, and suppliers’ relationship management. Accordingly, IT purchasing might require new structures and processes management.The purpose of the paper is to investigate what are the possible configurations for IT purchasing, and how these configurations are characterized in terms of purchasing process (i.e., strategic purchasing, sourcing and supply) and organization (i.e., roles involved, level of centralization, and span of control). Furthermore, the paper asks how IT relevance and purchasing maturity might affect these configurations. Through 12 case studies of leading international companies, four main configurations of the organization and the purchasing process for IT purchasing were identified, namely neutral (no specific approach is in place), IT oriented (the IT department takes the lead over the purchasing department), purchasing oriented (the purchasing department manages the whole IT sourcing process) and IT strategic (IT and purchasing departments jointly manage the IT purchasing process). The choice of the configuration is driven by IT strategic importance (low for neutral and purchasing oriented) and purchasing maturity of the company (low for neutral and IT oriented).     

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.     

Restructuring materiel management functions: a method for prioritizing changes and reducing costs

The success of any manager depends highly on the ability to seize on opportunities that will achieve the organization's goals. Hospitals are currently searching for ways to reduce costs while maintaining or enhancing the quality of services. Quality services are increasingly being defined as those that are most responsive to customer needs. It is important, as hospital management restructures materiel systems or methods of operation for reduced costs, to focus on the user departments as the customers. The consolidation of materiel management activity should not be seen as a loss of control at the user department level. Instead it can be seen as a new way of providing service with higher quality. User departments should see concrete benefits on a weekly basis, including reduced time spent on materiel management functions; increased planning of purchasing, inventory, and distribution functions; and assistance in meeting restricted supply budgets.     

Purchasing involvement in technologically uncertain new product development projects: Challenges and implications

This paper explores an emerging field of research within purchasing that concerns the changing role of purchasing when companies embark on technologically uncertain NPD projects. Where existing research has examined the role of purchasing in facilitating early supplier involvement in new product development, little research has been done to date on how purchasing's role might change when facing technologically uncertain NPD that require new capabilities and new technology. Based on an in-depth case study of a technologically uncertain NPD project in the passenger ship rescue equipment industry, the paper sheds light on how supplier involvement in NPD projects with a high degree of technological uncertainty impacts on a company's sourcing strategies and the challenges this poses for purchasing.Based on the case study findings, we propose a) that early purchasing involvement in technologically uncertain NPD projects requires a mature purchasing organization that possesses competences to interact effectively with R&D and b) that involving a new supplier from a different industry in NPD projects characterized by technological uncertainty requires a leap of faith from both innovating firm and supplier. The paper contributes to research in early supplier involvement in new product development, in particular the thin branch within this body of literature that now focuses on early purchasing involvement.     

Managing sourcing team effectiveness: The need for a team perspective in purchasing organizations

To meet today’s high demands on the purchasing function, sourcing teams have become the standard in contemporary corporate purchasing organizations. Sourcing teams are often started with high expectations. However, after making a promising start many of these teams appear to be unable to operate effectively and to meet management expectations. This study shows that sourcing team effectiveness is particularly hindered by a lack of team perspective in many purchasing organizations. In this paper, the results of a large-scale, cross-sectional survey to address the success factors for sourcing teams are discussed. We aim to clarify the factors behind sourcing team performance, taking into account the specific task and organizational context. It is concluded that purchasing executives should shift their focus towards employee involvement and team processes, to enable teams to actually meet and even surpass the expectations placed on them.     

Purchasing orchestration practices – Introducing a purchasing-innovation framework

This research investigates the purchasing role in enhancing an organization's innovation performance. Taking a purchasing perspective, this research introduces a new purchasing-innovation framework and specific purchasing orchestration (PO) practices related to the acquisition, integration, re-configuration, and commercialization of critical resources to enhance innovation performance. A theory elaboration methodology is applied to broaden the scope of resource orchestration theory (ROT) and introduce PO practices as an essential enabler of innovation. Qualitative interviews with managers from different industries enrich the theory elaboration process. This research contributes to theory by developing the concept of PO and enhancing the theoretical understanding of its meaning. Based on theory and empirical data, this research elucidates the PO practices of resource structuring, bundling, and leveraging support. The purchasing innovation framework explains how open-mindedness and technological uncertainty influence purchasing orchestration practices and innovation performance. Purchasing managers benefit from this research by learning to identify and address potential PO capability gaps and take a holistic perspective on resource management, looking both upstream and downstream in the supply chain.     

Implementing organizational change in supply towards decentralization

This paper presents the findings from research in large companies investigating implementation issues faced by chief purchasing officers as their supply organization changed to greater decentralization. Once the decision was made to decentralize, responsibility for implementation was given to the chief purchasing officer (CPO). Firms changing their supply organization to a more decentralized structure faced a number of implementation issues, including the business unit concerns, role of the chief purchasing officer, top management involvement, changes to existing purchasing staff and the involvement of consultants. In the nine changes studied across seven companies, the decentralization process also required the CPO to address a number of simultaneous activities, including cost reduction objectives and implementation of information technology systems. A surprising “purchasing paradox” was also uncovered as top management still expected decentralized supply units to provide additional savings.     

Knowledge‐intensive firms: the influence of the client on HR systems

HR systems play a critical role in growing knowledge‐intensive firms (KIFs) by facilitating the conversion of human capital into intellectual capital, which has market value. However, the choice of HR system is constrained by the relatively small number of clients they have in business‐to‐business relationships. This article seeks to understand how and why these client relationships affect the choice of HR practices in these firms. We address this issue by drawing on extensive empirical research currently under way in KIFs. Our research shows that HR practices can be influenced strongly by the client, both directly and indirectly. However, some KIFs will use their HR practices as a means of managing the relationships they have with their clients by shaping their boundaries with their clients and building organisational, professional and client identities. The varying client influence can be understood by examining the nature of the power relationship between the client and supplier, which is influenced by the uniqueness of the services provided. This has implications for our understanding of the factors affecting the exercise of a constrained choice of HR systems.     

基于协同博弈的军地采购协调机制研究

在介绍军队采购部门与地方供应商之间协同博弈表现及原因分析的基础上,建立了其协同博弈模型,通过进一步对军队采购部门与地方供应商的协同博弈分析,提出了建立军队采购部门与地方供应商协调机制的对策建议。     

Advancing purchasing as a design science: Publication guidelines to shift towards more relevant purchasing research

Due to rapidly changing business environments, purchasing and supply management (PSM) organisations are constantly confronted with new problems impacting organisational performance. PSM research can address these problems through design science research. Design science is also regarded as the science of the artificial. Design science research is a methodology that aims to systematically generate knowledge for the design, synthesis, testing, and evaluation of human-made artefacts (e.g., tools, interventions, policies) that solve practical problems. PSM artefacts such as the purchasing portfolio matrix invented by Kraljic (1983) represent a valuable opportunity to solve problems in the PSM discipline. However, our artificial-intelligence (AI)-based analysis of the discipline's flagship journal, the Journal of Purchasing and Supply Management (JPSM), indicates that design-oriented publications in PSM are underrepresented, accounting for less than 4% of the total publications. We argue that existing PSM research should be complemented with more design-oriented research, and address the following research question: How can PSM scholars publish more design-oriented research? Our objectives are to (1) provide arguments for advancing PSM as a design science, (2) nurture a better understanding of design science research as a methodology, and (3) propose publication guidelines that enable researchers to present design-oriented research in a management journal.     

FINANCING URBAN INFRASTRUCTURE: KNOWNS,UNKNOWNS, AND A WAY FORWARD

Improved urban infrastructure is widely believed to be essential in facilitating economic growth and in improving the lives of urban dwellers, both in developed and in developing countries. This paper focuses on several dimensions of urban infrastructure finance: finance for major infrastructure improvements in major economic centers, finance for expansion of basic municipal services in secondary cities and towns, and intergovernmental systems for financing investments with impacts beyond jurisdictional limits. It reviews what is “known” about current practices in these areas, using international evidence and case studies and summarizing international best practices. It also indicates areas in which knowledge gaps remain. Despite these “unknowns,” there are avenues by which our understanding of infrastructure schemes can be enhanced, and some suggestions for a research agenda on financing urban infrastructure are offered in the concluding section.     

Managing materiel in a multidivisional corporation

By using centralized purchasing and prime vendor contracts, the Allied Services material management department has been able to handle very effectively the purchasing needs of this multidivisional health care complex. Through active enforcement of Allied Service's materiel management policies and procedures, the department continues to be able to acquire the products and services that are necessary to keep the many programs running. Most importantly, these products and services continue to be acquired while the three significant attributes of materiel management--quality, availability, and service--are maintained.     

Innovation by design: SPARK and the Overcoming of Stanford University's Translational “Valley of Death” in Bio-Medicine

Stanford University's world leadership as an entrepreneurial university induced a “paradox of success,” inhibiting further development of its organizational infrastructure for entrepreneurship support. Nevertheless, some prospective academic entrepreneurs realized that there were invisible persisting gaps in the university's innovation system. We discuss the role of the entrepreneurial university and provide a case study of SPARK, an organizational innovation, created to address Stanford's translational research gap, that was then spread to other universities. The creation of a support structure to encourage students and faculty to define entrepreneurial projects as part of their education and research revealed a novel organizational change dynamic.     

第三方物流的增值服务

当前国际市场第三方物流（3PL）有很高的竞争力。大多数的第三方物流供应商提供一些基本服务,如运输与仓储服务,但很少提供增值服务。研究课题的主要目标是将第三方采购（3PP）作为其第三方供应商的增值服务。3PL提供商应当增加其增值服务,是为了保持其核心的竞争优势。而同时3PP是一种可行的选择。许多我国当地的第三方物流供应商并没有意识到他们的增值服务,因为他们主要只提供基本的服务（运输和仓储）。另外,从买方的角度来看,中小型企业缺乏足够大的购买力,比如数量,所以他们的采购价格相对而言比大企业要高出很多。这个研究提出第三方采购作为其增值服务,一方面能够增加第三方供应商的核心竞争力,另一方面使得我国的中小型企业也能获得更多的利润。     

Serving two organizations: Exploring the employment relationship of contracted employees

Although growth has occurred in contract employment arrangements both in the public and private sectors, scant research has been conducted on the organizations and employees affected by these arrangements.This study examines the employment relationship of long‐term contracted employees using a social exchange framework. Specifically, we examine the effects of employee perceptions of organizational support from contracting and client organizations on their (a) affective commitment to each organization and (b) service‐oriented citizenship behavior. We also examine whether felt obligation toward each organization mediates this relationship. Our sample consists of 99 long‐term contracted employees working for four contracting organizations that provide services to the public on behalf of a municipal government. Results indicate that the antecedents of affective commitment are similar for the client and contracting organization. Employee perceptions of client organizational supportiveness were positively related to felt obligation and commitment to the client organization. Client felt obligation mediated the effects of client perceived organizational support (POS) on the participation dimension of citizenship behavior. Our study provides additional support for the generalizability of social exchange processes to nontraditional employment relationships. Implications for managing long‐term contracted employees are discussed. © 2006 Wiley Periodicals, Inc.