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The Context, Organizational Design, and Performance of JIT Buying Versus Non‐JIT Buying Firms
Author(s) -
Germain Richard,
Droge Cornelia
Publication year - 1998
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.1998.tb00043.x
Subject(s) - purchasing , business , marketing , context (archaeology) , profit (economics) , profit center , product (mathematics) , industrial organization , economics , microeconomics , paleontology , geometry , mathematics , biology
IN BRIEF A comparison of Just‐In‐Time (JIT) versus non‐JIT buying firms was made on context, organizational, and performance dimensions. Of nine context variables examined, four distinguish JIT from non‐JIT buyers: these relate to uncertainty in manufacturing and marketing processes and to product turnover. Many differences were found in the organizational design variables. JIT buyers engage in far more extensive performance measurement (on internal, benchmark, and supplier dimensions). They are more likely to have written purchasing mission statements and written purchasing strategic plans. They are more likely to rely on cross‐functional teams to formulate purchasing strategy and to decentralize line‐operating decision making. Material handling, market research, and transportation scheduling specialists are more likely to be employed by JIT buying firms than by non‐JIT buying firms. Finally, differences were also found on four performance variables. JIT buying firms perform better in terms of weeks of inventory on hand, market share growth, return on investment, and profit.