Parry, Glenn, James-Moore, Mike and Graves, Andrew. (2006) Outsourcing engineering commodity procurement. SUPPLY CHAIN MANAGEMENT-AN INTERNATIONAL JOURNAL, 11 (5). pp. 436-443. ISSN 1359-8546

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Abstract

Purpose - The purpose of this paper is to introduce and provide an insight into the benefits of outsourcing the procurement function for engineering commodity items. Design/methodology/approach - Research into the literature presents the development of outsourcing procurement functions and this manuscript adds to the body of knowledge through introducing the outsourcing of engineering commodity procurement, illustrated with the case study example. Findings - A US Aerospace Fortune 50 company has made savings by outsourcing the procurement of commodity engineering parts. This has occurred in two stages. Firstly the commodity procurement was locally outsourced and staff migrated to the service provider to whom commodity procurement was a core competence enabling them to offer cost savings. Secondly the back office and telephone service was moved to India, further reducing cost whilst enhancing the service through an increased headcount.

Item Type:	Journal Article
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Journal or Publication Title:	SUPPLY CHAIN MANAGEMENT-AN INTERNATIONAL JOURNAL
Publisher:	EMERALD GROUP PUBLISHING LIMITED
ISSN:	1359-8546
Date:	2006
Volume:	11
Number:	5
Number of Pages:	8
Page Range:	pp. 436-443
Identification Number:	10.1108/13598540610682453
Publication Status:	Published
URI:	http://wrap.warwick.ac.uk/id/eprint/32980

Data sourced from Thomson Reuters' Web of Knowledge

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