Purchasing strategies in supply relationships

Abstract

Purpose

Purchasing has emerged as a key source of competitive advantage. This paper aims to explore how different purchasing strategies are connected to complex supply relationships and to the goal of purchasing.

Design/methodology/approach

The study draws on the literature on industrial network theory and industrial buying behaviour.

Findings

The contribution describes six types of purchasing strategies that firms exert. These strategies depend on the complexity of supply relationships and the buyer's purchasing goal. Conventional products and services are bought through transactional exchange relationships, whereas strategically important items are purchased through intentional supply networks.

Practical implications

Purchasing strategies of a firm emphasise either efficiency or effectiveness of operation. The type of exchange varies according to the nature of supply relationships: it is either transactional or relational. A key implication for managers is that they should recognise the goal of buying, the strategic importance of the object of purchasing, and choose accordingly between the different types of supplier structures.

Originality/value

The paper shows that firms' purchasing strategies depend on the nature of their supply relationships and the motive for purchasing. Different strategies emphasise different aspects and events that ultimately manifest themselves in the firms' business models.

Citation

Svahn, S. and Westerlund, M. (2009), "Purchasing strategies in supply relationships", Journal of Business & Industrial Marketing, Vol. 24 No. 3/4, pp. 173-181. https://doi.org/10.1108/08858620910939723