Strategic purchasing boosts supplier development and purchasing performance, driving competitiveness.
Strategic purchasing helps companies improve their buying performance by working closely with suppliers. This study shows that when companies align their purchasing strategy with their overall business strategy, they can develop better relationships with suppliers and get better results. By using a method called structural equation modeling, the researchers found that strategic purchasing leads to supplier development practices, which in turn leads to improved purchasing performance. This means that companies can gain a competitive edge by focusing on strategic purchasing.