This paper discusses risk and uncertainty aspects and proposes an assessment tool leading to identification of critical control points (CCPs) within purchasing-oriented activities of small and medium enterprises (SMEs). Identifying such CCPs is the basis for developing SME purchasing instruments to support purchasing-oriented activities. The identification of such CCPs will be theoretically approached from a systems perspective using four management functions which are needed to operate as a viable system: implementation, control, intelligence and coordination. When applied to the development of purchasing instruments, these instruments can be used for supporting one of these four management control functions.
This survey is about recognizing patterns in the way Small and Medium Enterprises (SMEs) organize their procurement activities. The scope of the survey is limited to the key commodities of the SME.A key commodity is defined as the purchased product or service group which is essential for realizing the value proposition for the customers of the SME.Prior outcome of our research indicated the existence of four procurement oriented patterns in SMEs. 4 Procurement Oriented Patterns where part of the study: Pattern 1 Focal company: ICT turn-key designerValue proposition of the focal company: ICT Design and assembly of offices on a high quality level at a reasonable price. Operational excellence: standardization in commodities, low transaction costs internally and externallyPurchased key commodity: Standard ICT software and hardwarePattern 2 Focal company: Horse shoes manufacturerValue proposition of the focal company: Standard horse shoes assortment at reasonable prices in a competitive environmentPurchased key commodity: Standard quality iron, reliable deliveryPattern 3 Focal company: IT innovation driven companyValue proposition of the focal company: Developing innovative software made applicable for practical usage in devices at a reasonable pricePurchased key commodity: Delivering applicable solutions on the bases of regular soft- and hardware, to enable the companies’ innovative software function in practicePattern 4 Focal company: designer and manufacturer of trailersValue proposition of the focal company: Designing and manufacturing trailers tailor made for specific requirements of customersPurchased key commodity: Designing and manufacturing axles which align to the specific trailer wishes of the customer of the focal companyFINDINGS Pattern recognitionAbout 50 % of the respondents recognized the four presented patterns from own experience and/or read literature. Respondents also suggested pattern variants. It is concluded that this Delphi study strengthens the view that these patterns exist in SMEs. Further research may include further empirical testing of these patterns and their variants. Perceived strengths or weaknesses. Respondents mentioned a wide variety of strengths and weaknesses of the patterns. No clear conclusions can be drawn from this data. Adequacy of the pattern descriptions. One of the outcomes of this Delphi study is an improved conceptual framework for describing procurement activity patterns. This framework can be used for collecting SME data in future research, for example by modifying the existing survey questions which are used in the WIM research program to describe SME procurement activities. The improved model includes more variables and values than the initial model. Thus future research may lead to more detailed patterns descriptions. Missing patterns and pattern variantsApart from the suggested pattern variants, respondents do not miss patterns which are quite different from the four patterns suggested by the research team. Methodological remarksThe Delphi study method did not allow for fast feedback on panel member contributions and fast group think processes. For the future it is advised to consider other methods in similar cases, for example the World Cafe method.
Aims: identify and explain purchasing-oriented patterns in Small and Medium Sized Enterprises (SMEs) via case study research.Scope: Using a conceptual framework and empirical research this article proposes a series of purchasing-oriented patterns in SMEs. These patterns align activities to achieve the SMEs proposed value proposition towards customers and activities to purchase resources needed for realizing the value proposition.Structure: This paper introduces the research topic. It discusses a conceptual framework and theory. It then continues with the methodology to collect and analyse case study data and describes empirical finding. It discusses these findings related to the framework and literature and ends with summarizing first conclusions.Conclusion: The SMEs in the dataset use four types of purchasing-oriented patterns related to their customer value propositions These SMEs can strive for low transaction costs can but invest in extrinsic product attributes to realize their value proposition. Both the transaction cost theory and the resource based view help to explain the purchasing-oriented patterns. Further research is needed to strengthen and validate findings.
