Managing the global supply base through purchasing portfolio management

‘How to source globally’ has become a critical strategic decision for companies competing on a global basis. Despite an increased focus on global sourcing and supply chain management, little is known about the challenges and solutions surrounding such sourcing practices. Extant literature points at...

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Bibliographic Details
Published inJournal of purchasing and supply management Vol. 12; no. 4; pp. 209 - 217
Main Authors Gelderman, Cees J., Semeijn, Janjaap
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.07.2006
Subjects
Global sourcing
Purchasing portfolio
Purchasing synergy
Supply base management
Global sourcing
Supply base management
Purchasing synergy
Purchasing portfolio
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Summary:‘How to source globally’ has become a critical strategic decision for companies competing on a global basis. Despite an increased focus on global sourcing and supply chain management, little is known about the challenges and solutions surrounding such sourcing practices. Extant literature points at the critical importance of developing and sharing knowledge in multinational companies (MNCs). However, little work has been undertaken to examine the organizational mechanisms used by MNC headquarters for knowledge leveraging across subsidiaries, especially in the area of purchasing and supply management. Based on an in-depth case study, focusing on a chemical company, the actual buying systems for managing the global supply base are explored. Kraljic's purchasing portfolio approach appears useful, both for developing effective purchasing strategies as well as for managing a global supply base.
ISSN:1478-4092
1873-6505
DOI:10.1016/j.pursup.2006.10.002