Strategic Purchasing and Supply Management: A Strategy-Based Selection of Suppliers (Einkauf, Logist

Strategic Purchasing and Supply Management: A Strategy-Based Selection of Suppliers actions when dealing with suppliers, supply markets and internal customers. Selected pages Jahns latent variable Logistics mass customization measurement Einkauf, Logistik und Supply Chain Management.
Table of contents

Therefore trust between the buyer and the supplier is weak and the relationship is oftentimes adversarial. Due to the onward 'marketization' of health care, open-minded hospital managers expect that the hospital procurement department will increasingly contribute to revenue gains and to knowledge acquisition in future [57]. In order to achieve this goal, the hospital purchasing departments have to better integrate internal consumers as well as the external suppliers.

Hence, cooperation trust and commitment , coordination processes and work practices , and communication information systems will be the key concepts to implement the required change. However, as the current research is mainly focused on industrial enterprises, it is the aim of this paper to provide an actual but sector-specific discussion of the subject matter and present first experiences of a SRM implementation project of a Swiss hospital.

We believe that a better understanding of the meaning and perspectives of SRM could improve collaboration between internal and external partners purchasing department, medical clinics, suppliers, and trading partners and possibly enhance the adoption of SRM concepts and technologies. The paper is organized as follows: In Section 2, we will refer to the state of the art of related research in the field in order to exemplify our understanding of SRM.

As the great part of the literature about SRM is focused on industrial organizations, the concept is put into the context of health care in Section 3. In Section 4, a case study is presented to demonstrate the impact of SRM on the business relationships, processes and IT of a health care organization. Finally, in Section 5 we will give a short summary on the insights, which we have gained from our case study and offer some suggestions for further research.

Supplier Relationship Management or Supply Management in the following we will use both terms interchangeably is a comprehensive approach to managing an organization's interactions with the firms that supply the products and services it uses. It has its origins in the late 80's basing on the seminal work of Dwyer et al. Today, software vendors who developed a wide range of ICT functionalities to support SRM activities give new impetus as well.

The immediate objective of SRM is to streamline and make more effective the sourcing processes between an enterprise and its suppliers. Indirectly, SRM is also aiming at quality-related improvements of information, products, services, and work force capabilities. A common agreed definition what SRM exactly comprises does not exist to date. Consecutively, some sample definitions -from academia and practice - are given below: As the name suggests, this is a mirror image of customer relationship management CRM.

Just as a company needs to develop relationships with its customers, it also needs to foster relationships with its suppliers [ SRM practices create a common frame of reference to enable effective communication between an enterprise and suppliers who may use quite different business practices and terminology. As a result, SRM increases the efficiency of processes associated with acquiring goods and services, managing inventory, and processing materials. Primarily, SRM tools have been developed to reduce the total cost of ownership TCO for procured goods, while creating competitive advantage for an organization through deeper relationships with its suppliers.

Looking at the above-mentioned definitions it is possible to determine that there is a dichotomy of understanding of the concept of SRM: A management-oriented definition that concentrates on the aspects of collaboration as well as coordination and a more technology-focused examining the new possibilities of electronic communication Table 1.

Perspectives on Supplier Relationship Management. For the further use of the term we define SRM as a comprehensive approach to enhance cooperation business relationship level , coordination process level , and communication information systems level between the enterprise and its suppliers in order to continuously improve efficiency and efficacy of collaboration and concurrently enhance quality, security, and innovation.

Compared to industries with intense competition like for example automotive or engineering, SRM is not paid much attention to health care research and practice [20]. Hence, the question arises why health care is dissimilar from other sectors and how is SRM affected by these? The activity of an enterprise involves cooperation, both voluntary and involuntary, active and passive, of numerous and diverse constituents [42].

Cooperation between business units is approached on the business relationship level. Business units are economic units, such as e. Depending on the business unit, different types of relationships exist. These normally can be used as differentiation criteria for the diverse relationship management approaches Figure 1. As described above, SRM primarily focuses on the improvement of the relationship between the enterprise and its immediate suppliers relationship type 1. An enlargement of SRM is the concept commonly refereed to as supplier network management SNM , which also incorporates pre-suppliers relationship type 2.

CRM relationship type 3 often is seen as the opposite of SRM given that the customers and not the suppliers are in the center of interest [59]. Similar to SRM, there also exists an extension of CRM called partner relationship management PRM , which principally concentrates on the intermediaries of an enterprise relationship type 4 [44].

Primary means to prepare, establish, engage and control a supplier cooperation relationship are: According to Herzlinger [23] and Porter and Olmsted Teisberg [41] health care is considered to be different from most other industries due to the high level of regulation, the high proportion of governmental investment, the associated low pressure in respect of effectiveness and efficiency of state-subsidized health care organizations and the lack of orientation towards customer benefit. As a consequence of that, the health care sector shows a relatively underdeveloped information system structure [39].

However, in order to provide optimal health service delivery there is a long-standing practice of including information beyond the traditional boundaries of a single health care organization [52].

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Furthermore, there is an imminent obligation for cooperation in order to comply with the requirement of both, internal e. The cooperation relationship with suppliers normally is subject to a variety of exogenous and endogenous influencing factors [31] Figure 2: The health care market is completely administered by governmental agencies - both professional e. Governmental regulations and policy constrict the freedom of action [43]. Health care shows, in contrast to other industries, a typical seller's market structure [10]. There is still a strong dependency between producers and customers [64].

The constitution of collaborative processes is therefore highly complex. Like in other sectors, technology is advancing quickly. This facilitates new possibilities for cooperation e. However, as health care is rather underdeveloped in terms of its IT infrastructure and health care personnel are less accustomed to work with new technologies, there is a need of acquiring not only technology but also expertise to handle it. Most sectors address an unambiguous and homogenous customer segment, but health care involves variety, including clinicians, payers, government, service providers, and users [3].

The health care organization's strategy and thereof derived sub-strategies e.


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However, to reduce complexity, variety of services and products has to be reflected critically. Perceptions, feelings, and face-to-face contact are extremely important to the success of any change effort [63]. Thus, social networking with suppliers is an important part of relationship management. Whereas management is unified in most sectors, health care has clinical and administrative reporting lines with sometimes very different leadership philosophy and target systems [3].

This division normally also has an influence on how to do business with suppliers. As medical staff is normally more inclined to assess the supplier relationship according to the quality of the delivered products, buying agents typically are more focused on the price performance ratio. Characteristics of supplier relationships in health care.

Veranstaltungen

Coordination is approached on the process level. Coordination between the processes ensures that the sourcing activities are interconnected and diaphanous. The granularity of a sourcing strategy would appear to be too coarse-grained for deriving concrete procedural instructions for the design and implementation of sourcing processes. Business processes include all tasks and activities to guarantee the supply of goods e. On the other hand, support processes focus on the allocation of the purchasing department's infrastructure and on the consequent assistance of efficient and effective business process delivery e.

As a consequence, support processes only generate indirect value. Management processes are needed for the organization, governance and development of the supplier relationship. For instance, in the short term, management processes deal with the control of every-day sourcing activities e. In the long term, management attendance is needed for the strategic alignment and normative orientation of the purchasing department and the supplier portfolio.

Reviewing the current literature in the area shows that the processes used for SRM are given unequal emphasis in terms of depth and breadth Table 2. Processes of supplier relationship management. Operational and strategic monitoring: As we believe that SRM consists of both technical and social networking, a holistic approach is needed Figure 3. On the one hand, our process framework for SRM consists of the prevalent business and management processes to handle supplier relationships: On the other hand, the framework includes supportive processes that are crucial for social and technical networking: Holistic process framework for supplier relationship management.

Communication is approached on the information systems level. Computer-based information systems are used to process and disseminate information within and between organizations and thus support the accomplishment of the defined processes [27], [46]. However, people are still needed to make sense of the processed data and to 'integrate' the information of non-digital channels such as voice communication by telephone or typing of hand-written forms. For CRM different types of computer-based information systems e.

Comparably, there is also a differentiation in SRM Figure 4. Analytical SRM white rounded squares aim at storing, analyzing, and applying knowledge about suppliers and personnel dedicated to manage the supplier's relationship. For this, typically performance management and decision support tools e. The purpose of collaborative SRM light gray rounded squares is to improve the quality of supplier collaboration, and, as a result, increase supplier performance and reliability.

Operational SRM dark gray rounded squares , commonly referred to as E-Procurement, includes all necessary tools for ordering and conclusion of a contract such as payment, invoice verification. Typical examples are plan-driven purchasing and desktop purchasing tools e. E-Catalog , E-Payment, supplier self-service, and supplier portals. Alongside analytical, collaborative, and operational SRM, other tools are needed dashed rounded squares to support activities, which are not in the core of procurement. For instance, search engines to retrieve all kind of internal and external information related to sourcing, inventory control systems to build the crucial bridge to the logistics department and requester of goods, business process modeling and enterprise architecture solutions for visualizing, simulating and analyzing different structural aspects of the purchasing department, personnel administration systems for managing workforce related information, finance and controlling systems to define targets and supervise the achievement of objectives, and enterprise content management systems to dispense all kind of documentation.

Information systems for supplier relationship management. However, the situation in health care is different since procurement, in most instances, is seen as cost driver. The review of empirical studies, journal and newspaper articles, and additional interviews with health care professionals in the field of health care supply management yielded to the following delineation of the status quo of SRM adoption in health care. The price is still the most important criterion for hospital buying agents for the establishment of a supplier relationship [20].

Surprisingly, product quality and reliability of suppliers seemed to be much less relevant. However, as the short-term price advantages for most material groups of a hospital are largely exploited other criteria for the selection of suppliers will gain in importance [36]. To generate mid-term and sustainable long-term cost-savings hospitals would need to increase networkability by bundling their demand in purchasing associations, establishing with other hospitals and health service providers a cross-organizational category management, thus optimizing the number of suppliers and product portfolios [17].

Introducing the mentioned business concepts in hospitals will not only have an impact on financial issues but also have a fundamental influence on the IT-architecture of a hospital e. Because of a broader availability and acceptance of operational procurement tools e. According to the German Association for Medical Technology [20], 38 per cent of the German hospitals already implemented an electronic delivery order and 35 per cent an electronic invoice.

Nevertheless, this ratio seems to be marginal when comparing with the aviation industry where 85 per cent of the organizations actively use e-procurement in day-to-day business. As cost-savings still are the major drivers for change projects in health care, the use of operational procurement tools is set to increase significantly in the next years.

Besides the strategic and functional activities in procurement there is also a need for tools to monitor and control the suppliers' and buying agents' performance. Therefore actual and accurate information about prices, delivery times, quantities and quality aspects build the basic input parameters for performance measurement. Hence, data quality management is becoming increasingly important when establishing SRM. While in health care improved data quality is mostly linked to better management of health plans and improved treatments, it also can help to increase competitiveness of a hospital e.

Until now, little has been done by the hospital purchasing department managers to implement performance measurement and governance principles in procurement. However, the discussion with the health care professionals showed that the awareness of governance issues is changing [33]. Little is known about the impact of SRM on health care organizations since its implementation is still in the fledgling stages. Therefore the case study at hand simply presents a first field report.

Nevertheless, it can help to get a better understanding of the importance of SRM in day-to-day business of a health care organization.

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Case study research can be used to provide descriptions of phenomena, develop theory, and test theory [12]. According to Yin, case study can be defined as "an empirical inquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident" [66]. Case study research is widely used and is particularly appropriate for the study of both, social as well as technical phenomena such as the development, implementation and use of information systems and IT within organizations [5], [35], [54].

We used it in an exploratory manner for investigating the possible impact of SRM, i. To obtain the required data, multiple expert interviews were conducted. In addition, personal observational field notes and secondary material e. Initial findings have been published in German at [30]. Bedingt durch den immateriellen Charakter der Dienstleistungserstellung in Banken werden origin re Informations- und Datenstr me sehr selten aus logistischer Perspektive betrachtet.

Auf der Basis einer empirischen Untersuchung zeigt Gernot Kaiser die strategische Erfolgswirkung der Logistik in Banken sowie eine bisher kaum beachtete M glichkeit zur Differenzierung im Wettbewerb auf. Konkrete Handlungsempfehlungen f r die praktische Gestaltung der Dokumentenlogistik runden die Arbeit ab. Der Logistiker sieht die Welt durch die Brille der Logistik, kalkuliert auch private Termine mit Zeitpuffern oder just-in-time, Grenzen der Anwendbarkeit scheinen nicht vorhanden. Logistische Prinzipien vereinen Effektivit ts- und Effizienzdenken, stetiger W- del ist zu antizipieren, neue Konzepte sind an Kundenanforderungen anzupassen.

Die Logistik ist - wissenschaftlich und praktisch - aber unter Ber cksichtigung spezifischer R- menbedingungen zunehmend auch auf Dienstleistungsunternehmen wie Banken und Ver- cherungen, jedoch gerade auch f r den..


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