Strategic supply management: theory and practice

Outsourcing of materials, services, and components to external suppliers has been recognised as a source of great competitive advantage. With an increase in the decision to outsource, the concept of strategic supply management has gained greater attention among both practitioners and academicians. Along with the abundance of research related to the identification of constructs as well as model development in this area, it is also helpful to learn more about which concepts are adopted widely and which are not. A cross-sectional mail survey of ISM members was utilised to collect empirical data to identify the critical theoretical constructs of supply management. Statistical analysis was further conducted to delineate the pattern of adoption of the various concepts. The results provide further empirical evidence to the fact that purchasing has grown in strategic importance. It also reveals that the key elements of buyer–supplier relationships including supply base reduction, long-term relationships, communication, cross-functional teams, and supplier integration are followed at varying levels. Usage of inter-organisational information systems was found to be a function of the size of the firm. The results of this study provide some fresh insights into the current practice of supply chain management.