Strategic Purchasing and Supply Management: A Strategy-Based Selection of Suppliers

Purchasing and Supply Management (PSM) is still not considered a strategic function in many companies although on average more than half of a company’s value proposition stems from its suppliers. In today’s economy, companies which neglect the strategic management of their supply base fall behind their competitors. In many boardrooms, PSM is currently on top of the agenda. However, PSM can only create the advantages necessary to stay ahead of the competition when a company’s supply base is managed according to its overall strategic objectives.
Roger Moser analyses the relationships between business priorities and PSM strategy and shows in detail how business strategies influence PSM, in particular supplier selection. He shows how a strategy-based selection of suppliers can generate competitive advantages in PSM and for the company. His work contributes to a research stream which aims at integrating PSM more closely into strategic management. Furthermore, the author develops a PSM strategy concept which enables supply managers to break down strategic priorities from a business strategy level to a PSM level and to define appropriate actions when dealing with suppliers, supply markets and internal customers.