Elsebeth Holmen

Exploration of customer horizons to measure understanding of netchains

The importance of a market orientation as the basis for meeting customer expectations is well known in marketing. In applying this concept to networks or netchains, the concept “customer horizon” is proposed to measure the ability to name or identify downstream customers and their requirements. A case study of five organizations in a netchain is examined to determine each companys customer horizon in terms of “breadth” and “length”. Based on the findings, it is suggested that companies can choose between alternative configurations of customer horizons. It is argued that it may be important to watch out for narrow and short customer horizons – especially when customer satisfaction is low, end consumer requirements are changing and/or these changes are not being communicated upstream to suppliers.

Purchasing as an organizational design problem: the case of non-product-related items and services

This paper discusses the problems and challenges that arise if a firm tries to concentrate purchasing activities in a separate organisational unit. For a variety of reasons, only a – small – part of all purchasing activities in an organisation is actually carried out by a purchasing department or a specialist. In particular, the purchasing of so-called non-product-related (NPR) items and services often takes place without the involvement of a purchasing department. In addition, despite the sometimes huge savings that reportedly are possible by involving a purchasing department, many managers and boards pay only modest attention to such opportunities. In this paper, a conceptual model is proposed that serves, in particular, to explain the Purchasing department’s limited and problematic involvement in a firm’s tactical NPR-purchasing activities. Based on these explanations and results from a small empirical study, we draw conclusions and formulate implications for managers and purchasing specialists. Research implications are formulated as well.