Product Feature as a Determinant of the Industrial Buying Method

• Autorzy: Anna Celińska
• Języki publikacji: EN

Abstrakty

EN

Purpose: The purpose is to present how a product feature, as determinant, affects selection of the appropriate buying method. The correct buying method choice provides companies with many advantages in terms of cost savings achieved within the organisation. Design/methodology/approach: The main method used is case study. The measurement of the result is based on target achievement set by a company. In addition the article reveals a new mathematical analysis of learning curve using integral calculation. Findings: Two determinants are presented - vulnerability to engineering changes and high labour intensity. Analyses show that choosing adequate buying method to a certain purchasing situation influences cost performance. There is also deliberation of new mathematical analysis of learning curve as supportive tool for industrial buyer. Research limitations/implications: The main limitation of this research is impossibility to test effectiveness of using different buying methods scenarios under the same conditions. Practical implications: For practitioners, buying method should be carefully chosen in relation to certain purchasing situation, e.g. product feature should be considered as one of the determinants. The article also provides supportive tool for price negotiations using learning curve phenomenon. Originality/value: The article presents how two determinants, frequent engineering changes and high labour intensity, affecting optimal industrial buying method selection in order to achieve better cost performance. In addition the article revealed new mathematical analysis of learning curve as supportive tool for professional buyers to be used during direct negotiations with suppliers.(original abstract)

Słowa kluczowe

EN

Labour costs; Theory of purchasing

PL

Koszty pracy; Teoria zakupów

• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2020
• Numer: z. 148 Contemporary management
• Strony: 89--101

Twórcy

autor

Anna Celińska

• FCA Group Purchasing Poland Sp. z o.o.

Bibliografia

• 1. Abernathy, W.J., Wayne, K. (1974). Limits of the learning curve. Harvard Business Review. Retrieved from https://hbr.org/1974/09/limits-of-the-learning-curve, 9.10.2019.
• 2. Bestshoring (2017, March 5). In Wikipedia. https://en.wikipedia.org/wiki/Bestshoring.
• 3. Clinton, H. (2004). Bestshoring beats outsourcing. Wall Street Journal. Retrieved from https://www.wsj.com/articles/SB109079435782473263, 19.04.2020.
• 4. Dachs, B., Kinkel, S., Jager, A., Palcic, I. (2019). Backshoring of production activities in European manufacturing. Journal of Purchasing and Supply Management, Vol. 25, Iss. 3. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S14784092183 00372, 20.01.2020.
• 5. Hall, G., Howell, S. (1985). The experience curve form the economist's perspective. Strategic Management Journal, Vol. 6.
• 6. Hanszke, E. (2018). Włoski Ufi Filters uruchomił fabrykę w Opolu. Zatrudni w niej 250 pracowników. Polska Times. Retrieved from https://polskatimes.pl/wloski-ufi-filters-uruchomil-fabryke-w-opolu-zatrudni-w-niej-250-pracownikow/ar/13742164, 6.02.2019.
• 7. Hirschmann, W.B. (1964). Profit form learning curve. Harvard Business Review. Retrieved from https://hbr.org/1964/01/profit-from-the-learning-curve, 11.09.2017.
• 8. Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review. Retrieved from https://hbr.org/1983/09/purchasing-must-become-supply-management, 25.02.2018.
• 9. Lacity, M.C., Khan, S.A., Willcocks, L.P. (2009). A review of the IT outsourcing literature: Insights for practice. Journal of Strategic Information Systems, 18, 130-146. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0963868709000195.
• 10. Mancheri, N., Chandrasher, S. (2013). Dominating the World China and the Rare Earth Industry. National Institute of Advanced Studies. Retrieved from https://www.researchgate.net/publication/313477894_Dominating_the_World_China_and_the_Rare_Earth_Industry, 11.12.2019.
• 11. Monczka, R., Handfield, R., Giunipiero, L., Patterson, J. (2016). Purchasing and supply management. Boston: Cengage Learning.
• 12. Newman, R. (1992). Supplier price analysis: a guide for purchasing, accounting and financial analysts. New York: Quorum Books.
• 13. Official Journal Of European Union 2008/C 10/17 https://eurlex.europa.eu/LexUriServ/ LexUriServ.do?uri=OJ:C:2008:010:0059:0066:PL:PDF.
• 14. Oshri, I., Kotlarsky, J., Willcocks, L.P. (2009). The handbook of global outsourcing and offshoring. Palgrave Macmillan.
• 15. Schuh, Ch., Raudabaugh, J., Kromoser, R., Strohmer, F., Triplat, A., Pearce, J. (2017). The purchasing chassboard. 64 methods to reduce costs and increase value with suppliers. Berlin: Springer, 22.
• 16. Weele, A.J. (2017). Purchasing & Supply Chain Management. Andover: Cengage Learning EMEA.
• 17. Zangwill, W., Kantor, P. (2000). The learning curve: a new perspective. International Transaction in Operational Research, Vol. 7, Iss. 6, 595-607.

Identyfikatory

DOI

10.29119/1641-3466.2020.148.6