POSSIBLE KINDS OF VALUES ADDED BY THE PURCHASING DEPARTMENT

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1、POSSIBLEKINDSOFVALUESADDEDBYTHEPURCHASINGDEPARTMENTJanTelgenCorinaPopSitarAbstractValue–basedpurchasingfocusesthedecisionsofpurchasingprofessionalsonthecreationofvalue,ratherthanonthetraditionalobjectivesofcostsavingsandefficiency.Mostofthepurchasingresearchersseepurchasingasastra

2、tegiccontributortotheaddedvalueoftheorganizations.Butonlyafewcontributionsdiscussthepossiblekindsofvaluesthatthepurchasingdepartmentcouldactuallyaddtotheorganization.Thispapertriestofillthisgapandreviewsthetraditionalandstrategicconceptsofvaluesaddedbypurchasingandthefactorsaffect

3、ingvalueadded.Furthermorethepaperpresentsaconceptualmodeloffactorsaffectingvalueaddedbythepurchasingdepartment.Inordertodiscovertheinfluenceofthesefactorsonthecapacityofthepurchasingdepartmenttoaddvaluetotheorganization,weconductedanempiricalstudy.Thepreliminaryfindingsoftheempiri

4、calresearcharepresentedattheendofthepaper.ValueisbecomingmoreimportanttotheorganizationDrivenbythefearfulcompetitiononthemarketplace,organizationsaregivingmoreattentiontothe‘value’concept.Theyareattemptingtoincreasethevalueoftheirproductsandservicesandreducenon-value-addedactiviti

5、es,bothintermsofcostandinnumber.Onefunctionthathasatremendousimpactontheseeffortsispurchasing.Therolepurchasingplaysintheorganizationiscrucial,andtheoutcomeofthepurchasingdecisionsmadecanhaveaprofoundimpactonthevalueoftheorganization.InthevaluechainanalysisdevelopedbyPorter(1985),

6、procurementisviewedasasupportactivity,thatcontributestothecompetitiveadvantageofabusinessunitbyaddingvalue.Thepurchasingfunctionusesvariousinputstoperformvalue-addingprocesses(marketandvalueanalyses,sourcing,negotiation,etc)andtoprovideoutputlikequality,services,materials,etc.Ifpu

7、rchasingperformstheseactivitieseffectively,thisoutputprovidestheorganizationwithacompetitiveadvantage(seefigure1).Thevalue-chaindemonstratesthatthepurchasingfunctionhasamajorroleinaddingvaluetotheorganization.Mostofthepurchasingresearchersseepurchasingasastrategiccontributortothea

8、ddedvalueoftheorganizations.Buton