Go Configure: The Mix of Purchasing Practices to Choose for Your Supply Base

Purchasing and supply management professionals recognize the value of aggressive transactional sourcing, as well as of having cooperative relationships with suppliers. But what mix of transactional and relational purchasing are organizations using, and which should they use? A novel instrument is developed to measure organizations' use of transaction purchasing, electronic purchasing, interactive purchasing, and network purchasing. Four mixes of practices are identified and labeled "transactional," "interpersonal dyadic," "interpersonal network," and "integrative relational" configurations. Organizations using an integrative relational configuration generally outperform others. Irrespective of configuration, organizations use more interactive and network purchasing with suppliers of direct inputs but more transaction purchasing with suppliers of indirect inputs.