Achieving Efficiency and Effectiveness in Purchasing and Supply Management: Organization Design and Outsourcing

Lydia Bals*, Virpi Turkulainen

*Kontaktforfatter af dette arbejde

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    Resumé

    As a function with a strategic role, Purchasing and Supply Management (PSM) needs to continuously find ways to improve its efficiency and effectiveness. One potential way to specifically addressing efficiency targets is to outsource parts of the purchasing process. While outsourcing remains one of the most prevalent business practices in various areas, many businesses fail to realize the benefits anticipated from their outsourcing initiatives. Research reports that one major reason for these outsourcing challenges lies in the design of the focal organization. In this paper, we take an organization design view to outsourcing in the PSM context. Based on a multi-year case study from 2010 to 2013 at a global chemical and pharmaceutical company, we elaborate how the organizational design of the PSM function relates to outsourcing opportunities in order to increase efficiency and effectiveness by allocating internal resources to more value-adding activities. The case illustrates how an activity-based organizational design of PSM can support outsourcing of some parts of the purchasing process.
    OriginalsprogEngelsk
    TidsskriftJournal of Purchasing and Supply Management
    Vol/bind23
    Udgave nummer4
    Sider (fra-til)256-267
    ISSN1478-4092
    DOI
    StatusUdgivet - 21 jun. 2017

    Emneord

    • Purchasing and supply management
    • Purchasing organization
    • Organizational design
    • Outsourcing
    • Case study

    Citer dette

    @article{87542721d00a4e81848fbb5df9bc70ec,
    title = "Achieving Efficiency and Effectiveness in Purchasing and Supply Management: Organization Design and Outsourcing",
    abstract = "As a function with a strategic role, Purchasing and Supply Management (PSM) needs to continuously find ways to improve its efficiency and effectiveness. One potential way to specifically addressing efficiency targets is to outsource parts of the purchasing process. While outsourcing remains one of the most prevalent business practices in various areas, many businesses fail to realize the benefits anticipated from their outsourcing initiatives. Research reports that one major reason for these outsourcing challenges lies in the design of the focal organization. In this paper, we take an organization design view to outsourcing in the PSM context. Based on a multi-year case study from 2010 to 2013 at a global chemical and pharmaceutical company, we elaborate how the organizational design of the PSM function relates to outsourcing opportunities in order to increase efficiency and effectiveness by allocating internal resources to more value-adding activities. The case illustrates how an activity-based organizational design of PSM can support outsourcing of some parts of the purchasing process.",
    keywords = "Case study, Organizational design, Outsourcing, Purchasing and Supply Management, Purchasing organization, Purchasing and supply management, Purchasing organization, Organizational design, Outsourcing, Case study",
    author = "Lydia Bals and Virpi Turkulainen",
    year = "2017",
    month = "6",
    day = "21",
    doi = "10.1016/j.pursup.2017.06.003",
    language = "English",
    volume = "23",
    pages = "256--267",
    journal = "Journal of Purchasing & Supply Management",
    issn = "1478-4092",
    publisher = "Elsevier",
    number = "4",

    }

    Achieving Efficiency and Effectiveness in Purchasing and Supply Management : Organization Design and Outsourcing. / Bals, Lydia; Turkulainen, Virpi.

    I: Journal of Purchasing and Supply Management, Bind 23, Nr. 4, 21.06.2017, s. 256-267.

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    TY - JOUR

    T1 - Achieving Efficiency and Effectiveness in Purchasing and Supply Management

    T2 - Organization Design and Outsourcing

    AU - Bals, Lydia

    AU - Turkulainen, Virpi

    PY - 2017/6/21

    Y1 - 2017/6/21

    N2 - As a function with a strategic role, Purchasing and Supply Management (PSM) needs to continuously find ways to improve its efficiency and effectiveness. One potential way to specifically addressing efficiency targets is to outsource parts of the purchasing process. While outsourcing remains one of the most prevalent business practices in various areas, many businesses fail to realize the benefits anticipated from their outsourcing initiatives. Research reports that one major reason for these outsourcing challenges lies in the design of the focal organization. In this paper, we take an organization design view to outsourcing in the PSM context. Based on a multi-year case study from 2010 to 2013 at a global chemical and pharmaceutical company, we elaborate how the organizational design of the PSM function relates to outsourcing opportunities in order to increase efficiency and effectiveness by allocating internal resources to more value-adding activities. The case illustrates how an activity-based organizational design of PSM can support outsourcing of some parts of the purchasing process.

    AB - As a function with a strategic role, Purchasing and Supply Management (PSM) needs to continuously find ways to improve its efficiency and effectiveness. One potential way to specifically addressing efficiency targets is to outsource parts of the purchasing process. While outsourcing remains one of the most prevalent business practices in various areas, many businesses fail to realize the benefits anticipated from their outsourcing initiatives. Research reports that one major reason for these outsourcing challenges lies in the design of the focal organization. In this paper, we take an organization design view to outsourcing in the PSM context. Based on a multi-year case study from 2010 to 2013 at a global chemical and pharmaceutical company, we elaborate how the organizational design of the PSM function relates to outsourcing opportunities in order to increase efficiency and effectiveness by allocating internal resources to more value-adding activities. The case illustrates how an activity-based organizational design of PSM can support outsourcing of some parts of the purchasing process.

    KW - Case study

    KW - Organizational design

    KW - Outsourcing

    KW - Purchasing and Supply Management

    KW - Purchasing organization

    KW - Purchasing and supply management

    KW - Purchasing organization

    KW - Organizational design

    KW - Outsourcing

    KW - Case study

    UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=111056548249002

    U2 - 10.1016/j.pursup.2017.06.003

    DO - 10.1016/j.pursup.2017.06.003

    M3 - Journal article

    AN - SCOPUS:85020935024

    VL - 23

    SP - 256

    EP - 267

    JO - Journal of Purchasing & Supply Management

    JF - Journal of Purchasing & Supply Management

    SN - 1478-4092

    IS - 4

    ER -