University of Twente Student Theses
Indirect purchasing and supplier satisfaction : How can operative excellence be a facilitator to improve the buyer-supplier relationship?
Schloms, P. (2024) Indirect purchasing and supplier satisfaction : How can operative excellence be a facilitator to improve the buyer-supplier relationship?
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| Abstract: | While direct purchasing has been recognised as a strategic enabler for organisations, indirect spend management is still neglected, despite accounting for up to 60% of a company's spend. Most topics in indirect procurement are concerned with cost-savings and process improvements, however the strategic implications are not clear. This thesis investigated indirect procurement in the context of the preferred customer concept, more specifically operative excellence. The goal was to get further insights how operative excellence can increase the satisfaction of indirect suppliers. Additionally, the purchasing process has been analysed from the supplier’s side, to gain a deeper understanding why certain factors are particularly relevant for them. The research has been conducted at the agricultural manufacturer COMPANY X, whose indirect suppliers have been interviewed. The results showed that indirect suppliers value different operative excellence factors than direct suppliers. Suppliers considered efficient RFQ, ordering and payment processes as important. The most mentioned issues were lack of feedback and communication in the RFQ phase, customers not following agreed processes and delayed payments. A maturity model has been developed based on the supplier’s responses, translating them into a self-assessment possibility for indirect purchasing departments. Furthermore, e-procurement has shown to be a facilitator to supplier satisfaction for some suppliers, while for others it was seen as a burden. Findings indicate that the impact of e-procurement adaption on supplier satisfaction can depend on firm’s resources and size. Buying firms can benefit from integrating their suppliers already in the strategy phase of new process implementations. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/100253 |
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