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

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  • Rebolledo, Claudia
  • Jobin, Marie-Hélène

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.

Suggested Citation

  • Rebolledo, Claudia & Jobin, Marie-Hélène, 2013. "Manufacturing and supply alignment: Are different manufacturing strategies linked to different purchasing practices?," International Journal of Production Economics, Elsevier, vol. 146(1), pages 219-226.
    • Handle: RePEc:eee:proeco:v:146:y:2013:i:1:p:219-226
    DOI: 10.1016/j.ijpe.2013.06.027
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    References listed on IDEAS

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    1. Wang, Jian & Cao, De-bi, 2008. "Relationships between two approaches for planning manufacturing strategy: A strategic approach and a paradigmatic approach," International Journal of Production Economics, Elsevier, vol. 115(2), pages 349-361, October.
    2. Jeffrey G. Miller & Aleda V. Roth, 1994. "A Taxonomy of Manufacturing Strategies," Management Science, INFORMS, vol. 40(3), pages 285-304, March.
    3. Rho, Boo-Ho & Park, Kwangtae & Yu, Yung-Mok, 2001. "An international comparison of the effect of manufacturing strategy-implementation gap on business performance," International Journal of Production Economics, Elsevier, vol. 70(1), pages 89-97, March.
    4. González-Benito, Javier & Reis da Rocha, Duilio & Queiruga, Dolores, 2010. "The environment as a determining factor of purchasing and supply strategy: An empirical analysis of Brazilian firms," International Journal of Production Economics, Elsevier, vol. 124(1), pages 1-10, March.
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    Cited by:

    1. Pakhomova, L., 2016. "Competitive priorities in operations and technology management: Literature review," Working Papers 6448, Graduate School of Management, St. Petersburg State University.
    2. Miltenburg, John, 2015. "Changing a multidomestic production network to a global function network: North America Heinz ketchup from 1960 to 2015," International Journal of Production Economics, Elsevier, vol. 168(C), pages 267-278.
    3. Okoshi, Cleina Yayoe & Pinheiro de Lima, Edson & Gouvea Da Costa, Sergio Eduardo, 2019. "Performance cause and effect studies: Analyzing high performance manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 27-41.

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