The pursuit of global purchasing synergy

Abstract

The pursuit of synergy is generally considered an important strategic thrust. In multiplant and multinational corporations, the quest for global efficiency and effectiveness has led to increased centralization and coordination of the purchasing function. The centralization-decentralization issue is debated at length in the purchasing literature as well as in the marketing and strategic marketing literature. However, most authors limit their discussion to arguments in favor of or against centralization and to criteria to select a suitable approach. Insights into the process of achieving global purchasing synergy as well as specific managerial guidelines are lacking. This article aims to bridge the gap between the literature stressing the need for achieving purchasing synergy on the one hand and specific implementation guidelines for managers on the other hand. In order to do so, we link the process aspects of global supply coordination to satisfaction levels experienced at both headquarter and plant level. As a result, managerial implications to successfully tap global purchasing synergy are formulated. (C) 2000 Elsevier Science Inc. All rights reserved.