Strategic supplier selection boosts purchasing performance in manufacturing companies.
The article explores how being involved in strategic planning helps purchasing departments make better decisions when choosing suppliers and evaluating their performance. By using the right criteria for selecting suppliers and monitoring their performance, companies can improve their purchasing performance in terms of cost, quality, delivery, flexibility, and innovation. The researchers collected data from US manufacturing companies and found that purchasing's involvement in strategic planning directly impacts purchasing performance, both on its own and through the effects of supplier selection criteria and performance evaluation. This suggests that strategic participation in purchasing decisions can lead to better overall performance for companies.