Purchasing Strategies for Electronic Components: A Case Study of Delta with a Portfolio Model

• Main Authors: Szu-Jui Lin, 林思睿
• Other Authors: Eric, Tswen-Gwo Wang
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/kg523w

碩士 === 國立中央大學 === 資訊管理研究所 === 94 === The concept of “Supply Chain Management” has been increasingly viewed as one of the major management concerns among businesses over the past decade. Over 50 % of the revenues are spent on the purchases of goods and services needed to produce final products. The effective supplier management is undoubtedly critical to firm competitive advantages and can lead to the increasing concerns of buyer-supplier relationship management. Typically, a range of different relationships can be observed within the supplier base. It is recommended that the supplier base should be managed as a portfolio of relationships by identifying the different product/raw material/parts categories. Since Kraljic (1983) presented the first and dominant purchasing portfolio to manage different supplier bases, there has been a growing applications and adoptions of the model in practical. Research has suggested that commodity types will influence the types of technology a firm connects with its suppliers, while some researchers believe the opposite. However, there is a lack of insight into such relationships. With a case study, the purpose of this research is to have a deeper analysis of whether the commodity types of the product/raw material/parts lead to different supplier relationship management and how the a firm differentiates its purchasing strategies for the supplier relationship management and e-procurement applications for different supplier groups. The research findings showed: (1) Delta does differentiate its purchasing strategies for parts in different categories of the purchasing portfolio, as the previous researches recommended; (2) Commodity types will lead to different strategies, such as the level of decision makers, the level of top management involvement, the length of contracts, the level of early supplier involvement and etc; (3) Commodity types do not influence the types of IT applications Delta connects with its suppliers; (4) Through the purchasing strategies, Delta can move the parts to a better position.