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Historical lessons in purchasing and supplier relationship management

Historical lessons in purchasing and supplier relationship management Purpose – The purpose of this paper is to examine the key recommendations of early practitioners of purchasing management regarding supplier relationships and how policies and practices for obtaining lower unit prices affect buyer‐seller relationships. Design/methodology/approach – The paper reviews the seven earliest books published on purchasing in the period 1915‐1940, and contrasts with common purchasing practices currently used by large corporations. Findings – The logical, practical recommendations made by purchasing managers in the early 1900s differ markedly from the imprudent practices used by the managers of most large corporations today. Research limitations/implications – Research is limited by the inability to speak to deceased authors/purchasing practitioners cited to gain their venerable insights on the longevity of value‐destroying dysfunctional purchasing practices. Practical implications – This paper shows how the common purchasing performance metric and the zero‐sum policies and practices used to obtain lower unit prices degrade buyer‐seller relationships and contribute to regression in the practice of purchasing and supply chain management, as well as in business overall. Originality/value – This paper will be helpful to academics who study purchasing history as well as current purchasing and supplier relationship management practices. Practitioners will benefit by becoming reacquainted with sensible practices long known to result in more favorable outcomes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management History Emerald Publishing

Historical lessons in purchasing and supplier relationship management

M.L. Emiliani
Journal of Management History , Volume 16 (1): 21 – Jan 12, 2010
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References (48)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1751-1348
DOI
10.1108/17511341011008340
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to examine the key recommendations of early practitioners of purchasing management regarding supplier relationships and how policies and practices for obtaining lower unit prices affect buyer‐seller relationships. Design/methodology/approach – The paper reviews the seven earliest books published on purchasing in the period 1915‐1940, and contrasts with common purchasing practices currently used by large corporations. Findings – The logical, practical recommendations made by purchasing managers in the early 1900s differ markedly from the imprudent practices used by the managers of most large corporations today. Research limitations/implications – Research is limited by the inability to speak to deceased authors/purchasing practitioners cited to gain their venerable insights on the longevity of value‐destroying dysfunctional purchasing practices. Practical implications – This paper shows how the common purchasing performance metric and the zero‐sum policies and practices used to obtain lower unit prices degrade buyer‐seller relationships and contribute to regression in the practice of purchasing and supply chain management, as well as in business overall. Originality/value – This paper will be helpful to academics who study purchasing history as well as current purchasing and supplier relationship management practices. Practitioners will benefit by becoming reacquainted with sensible practices long known to result in more favorable outcomes.

Journal

Journal of Management History – Emerald Publishing

Published: Jan 12, 2010

Keywords: Purchasing; Supplier relations; Buyer‐seller relationships; History

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