Wouter Faes

The Pursuit of Global Purchasing Synergy

Abstract The pursuit of synergy is generally considered an important strategic thrust. In multiplant and multinational corporations, the quest for global efficiency and effectiveness has led to increased centralization and coordination of the purchasing function. The centralization–decentralization issue is debated at length in the purchasing literature as well as in the marketing and strategic marketing literature. However, most authors limit their discussion to arguments in favor of or against centralization and to criteria to select a suitable approach. Insights into the process of achieving global purchasing synergy as well as specific managerial guidelines are lacking. This article aims to bridge the gap between the literature stressing the need for achieving purchasing synergy on the one hand and specific implementation guidelines for managers on the other hand. In order to do so, we link the process aspects of global supply coordination to satisfaction levels experienced at both headquarter and plant level. As a result, managerial implications to successfully tap global purchasing synergy are formulated.

Insights into the process of changing sourcing strategies

Purpose – The aim of this article is to identify the motivations driving the process of changing sourcing strategy from single sourcing to multiple sourcing or vice versa.Design/methodology/approach – Ten cases of sourcing strategy change were investigated. A qualitative research method is used to uncover the richness of these change processes.Findings – Most of the advantages and disadvantages stated in the literature were confirmed. Identical objectives (cost cutting and quality improvement) were present in all cases, although changes took place in opposite directions. Contextual factors, such as standardisation and supplier base reduction efforts shape purchasing strategy more than previously thought. The dynamic nature of the product lifecycle also seems to be an important determinant.Research limitations/implications – Although the results of qualitative case study research can only be “generalised” in a limited way, the case details help to identify the dynamics of sourcing strategy switches and to ...

Managing Channel Relations in China: An Exploratory Study

Channel management deals with the establishment of an efficient and effective distribution channel. It implies the stepwise development of channel leadership and channel relations. International channel management and the establishment of cross-border relations between exporting suppliers and their foreign subsidiaries and intermediaries are key in international marketing performance (Madsen, 1989; Cavusgil & Zou, 1994; Solberg & Nes, 2002). Li (2003) proves that an export channel is a very complicated phenomenon and a number of factors, both contextual and historical, affect simultaneously the exchange modes and their operation.