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Strategic Procurement and Competitive Advantage
Author(s) -
Rajagopal Shan,
Bernard Kenneth N.
Publication year - 1993
Publication title -
international journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1055-6001
DOI - 10.1111/j.1745-493x.1993.tb00014.x
Subject(s) - purchasing , procurement , business , competitive advantage , scope (computer science) , marketing , interdependence , process (computing) , vendor , process management , industrial organization , computer science , political science , law , programming language , operating system
Since the mid‐1970s there has been a growing, if sporadic, interest in strategic approaches to the procurement process, with an emphasis on the scope for proactivity. However, there has been little consideration of the contribution that may be made to the overall competitive efforts of the organization. This article begins to address this missing link by going back to the fundamental objectives of the purchasing activity and by outlining a framework for the development of a competitive purchasing strategy. The main thrust of such a program centers on the integration of purchasing and procurement operations to satisfy the needs of direct and indirect customers, necessitating constructive management of both inter‐company and intra‐company relationships. The conclusion reached is that purchasing and marketing are not merely interdependent, but that making the “right” procurement decisions is a necessary ingredient in competitive success.