Procurement of a supply information system: Lessons learned from the purchase of an inventory management system for C-parts

Abstract

Purpose

Given the high importance of information systems for procurement, surprisingly there have been little efforts to analyze the process and the relevant reasons for the procurement decision of such systems from a stakeholder perspective. The purpose of this paper is to explore these aspects in the context of low-value (C-)parts.

Design/methodology/approach

Research is based on a case study in a pre-fabricator company in Germany and analyzes the process to procure a system for sourcing low-value parts.

Findings

As a finding, the procurement process and decision attributes have been integrated into a framework which supports corporate decision-making considering the procurement reasons of all involved stakeholders (internal departments, external customers and suppliers).

Research limitations/implications

Research is based on case study analysis. Findings are specific to case companies and the environment in which they operate. The framework should be tested further in different contexts.

Practical implications

The developed decision frame supports the evaluation of different sourcing information systems, including clearly measurable criteria but also qualitative or company-strategic decision attributes.

Originality/value

The combination of financial and other perspectives (operations, information technology (IT)-administration, system users, etc.), is used to evolve a robust ex-ante instrument for supporting buying decisions for procurement information systems. The case description also illustrates the findings and develops new insights about stakeholders and buying groups decision-making for information systems.

Citation

Essig, M., Glas, A.H. and Gutsmiedl, J. (2015), "Procurement of a supply information system: Lessons learned from the purchase of an inventory management system for C-parts", Journal of Enterprise Information Management, Vol. 28 No. 3, pp. 377-399. https://doi.org/10.1108/JEIM-01-2014-0008