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Paper info: Matching purchasing maturity and supplier relationship management capabilities

Title


Matching purchasing maturity and supplier relationship management capabilities

Authors


Katrina Lintukangas

Place of Publication


The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.

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Abstract


The paper focuses on the value creating role of purchasing and studies it through the purchasing maturity model. Generally, it is assumed that operating on a higher maturity level requires more skills and knowledge from the purchasing staff. In the past literature many conceptual maturity models have been suggested, however, the empirical studies matching capabilities related supplier relationship management with the maturity models of purchasing are only few. The aim of the study is to find out how the value creating role of purchasing is linked with supplier relationship management. A case study is presented indicating that the value creation role of purchasing highly depends on the future insights of the company management. The experience and the capabilities of the purchasing staff are essential in cost optimization and asset utilization, but achieving the value chain integration, the capabilities of supplier relationship management and collaborative interaction with key suppliers is required. The maturity of purchasing in a specific company should be evaluated in a way that takes into account how well purchasing and supplier relationship management are aligned according to the firm's strategy and business.