Strategic purchasing key to thriving amidst supply base complexity challenges.
The study looked at how the complexity of a company's supply base affects its purchasing performance. They studied 209 firms in Turkey and found that different types of supply base complexity can either help or hurt purchasing performance, depending on how strategically the company approaches purchasing. For example, having unique suppliers and dealing with suppliers from different locations can lower performance for some firms. But for others, having a variety of suppliers and good communication with them can actually improve performance. The study shows that supply base complexity isn't always bad, and its impact depends on how a company handles its purchasing strategy.