Purchasing Strategies in Manufacturing SMEs
Problem: Hill (2007) claims that the consequences of globalisation and a more integrated and interdependent world economy has brought forward constant and rapid changes which create dynamic business markets and increases the pressure for efficiency and profitability. Thus, the increases in commodity prices in recent decades strengthen this pressure to a crucial level. SMEs in industrialised countries face consequences of this trend since their customers, mainly LE’s, are putting pressure on them to become more efficient in order for the supply chain to become more competitive in the global market. An efficient pur-chasing process allows SMEs to reduce total cost of their products, improve their proc-esses and technologies which would lead to an increase of their competiveness.Purpose: The purpose of this thesis is to develop a more suitable purchasing model for manufacturing SMEs by evaluating purchasing portfolios and classification models and also by considering different purchasing strategies.Method: This paper starts with secondary data collected from books and articles as well as online sources in order to present the appropriate theories regarding SMEs, purchasing strategies, and purchasing portfolio and classification models, as well as the theory on methodology. This primary data was collected through an online survey with 12 questions. A covering letter and a link to access the survey was sent to 500 manufacturing SMEs, also three reminders were sent out during the two week collection period which resulted in a re-sponse from 90 companies.Conclusions: Based on results of the survey we can conclude that purchasing in SMEs is relatively underdeveloped. By evaluating three purchasing portfolios and classification models and reviewing the most common purchasing strategies we have been able to de-velop a more suitable purchasing model for a manufacturing SME. The purchasing model is supposed to serve as a foundation on which a SME can build its purchasing function and strategies in the future.
School:Högskolan i Jönköping
Source Type:Master's Thesis
Keywords:purchasing portfolios sme
Date of Publication:10/01/2008