Tactics at the category level of purchasing and supply management: sourcing levers, contingencies and performance

Frank Hesping

Research output: ThesisPhD Thesis - Research UT, graduation UT

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Abstract

For the ‘front-line’ purchasing agent, it is obvious that not all categories of products and supplier relationships should be managed in the same way. Rather, in a modern category management approach, firms group similar products into ‘sourcing categories’ forming coherent supply markets (e.g., ‘metal sheets’, ‘leather’, ‘displays’, ‘cables’, etc.). Thus, to achieve cost reduction targets, a tailored mix of tactical sourcing levers for each sourcing category may be required. The fundamental question is: Which tactical sourcing levers and activities, under which conditions, yield the highest cost savings? This study provides practical recommendations regarding what sourcing activities should be selected with respect to the characteristics of a particular sourcing category. The research builds on strong collaboration with ‘front-line’ purchasing agents and provides guidelines that can be adopted to verify whether the targeted tactical sourcing levers are actually beneficial for the sourcing conditions faced.
Original languageEnglish
Awarding Institution
  • University of Twente
Supervisors/Advisors
  • Schiele, Holger , Supervisor
  • Schiele, Holger , Supervisor
Award date26 Nov 2015
Place of PublicationEnschede
Publisher
Print ISBNs978-90-365-4002-5
DOIs
Publication statusPublished - 26 Nov 2015

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Tactics
Supply management
Sourcing
Contingency
Purchasing
Metals
Leather
Cost savings
Category management
Supplier relationships
Cable

Keywords

  • IR-98120
  • METIS-313199

Cite this

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Tactics at the category level of purchasing and supply management: sourcing levers, contingencies and performance. / Hesping, Frank.

Enschede : Universiteit Twente, 2015. 222 p.

Research output: ThesisPhD Thesis - Research UT, graduation UT

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N2 - For the ‘front-line’ purchasing agent, it is obvious that not all categories of products and supplier relationships should be managed in the same way. Rather, in a modern category management approach, firms group similar products into ‘sourcing categories’ forming coherent supply markets (e.g., ‘metal sheets’, ‘leather’, ‘displays’, ‘cables’, etc.). Thus, to achieve cost reduction targets, a tailored mix of tactical sourcing levers for each sourcing category may be required. The fundamental question is: Which tactical sourcing levers and activities, under which conditions, yield the highest cost savings? This study provides practical recommendations regarding what sourcing activities should be selected with respect to the characteristics of a particular sourcing category. The research builds on strong collaboration with ‘front-line’ purchasing agents and provides guidelines that can be adopted to verify whether the targeted tactical sourcing levers are actually beneficial for the sourcing conditions faced.

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