Manufacturing and supply alignment: Are different manufacturing strategies linked to different purchasing practices?

Claudia Rebolledo and Marie-Hélène Jobin

International Journal of Production Economics, 2013, vol. 146, issue 1, 219-226

Abstract: Despite the recognized importance of the horizontal fit between purchasing and manufacturing, empirical research in this area is scarce. In this paper, we investigate whether different manufacturing strategies translate into different supply management practices. To do this, we develop a numerical taxonomy of manufacturing strategies based on ten competitive priorities using survey data from manufacturing plants in developed countries. Cluster analysis identifies three manufacturing strategy types: Quality customizers, Caretakers and Timekeepers. We then use analysis of variance to compare the purchasing practices of members of different manufacturing strategy groups. Results indicate that the size of the supply base and the percentage of strategic suppliers are not significantly different among the three groups. Considering the criteria for selecting suppliers, we find that Quality customizers put significantly more emphasis on all criteria, but firms in the three groups consider the same major criteria when choosing their suppliers. The adoption of coordination mechanisms with suppliers follows a similar pattern. Quality customizers show the highest level of adoption of all mechanisms, but the ranking of the level of adoption of the coordination mechanisms is similar in the three manufacturing groups. Overall, results do not show a strong link between manufacturing and purchasing strategies. Manufacturing plants in our sample do not align their manufacturing strategy with dissimilar purchasing practices. We discuss possible explanations for this unexpected result.

Keywords: Manufacturing strategy; Purchasing practices; Cluster analysis (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:146:y:2013:i:1:p:219-226

DOI: 10.1016/j.ijpe.2013.06.027

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