Influencing Purchasing Positioning – Deriving a Model Based on Internal Factors

A purchasing organization is often questioned, when performance is not provided at the expected level. On the other hand a connectivity between performance level and so called positioning of a purchasing organization seems to be obvious. Technically spoken performance level is a result of an equation with input factors. The interesting question is how the performance level (output) is generated and which aspects influence the effectiveness (input) of a purchasing organization to optimize a as weak perceived purchasing division, rather than focusing on the output itself. Purchasing performance thus can be defined as the extent to which the purchasing function is able to realize its predetermined goals at the sacrifice of a minimum of the company's resources. The aim of this paper is to examine, which factors drive the individual set up of a purchasing organization to manage its performance level. The methodical approach is an executed internet and literature research of typical factors and review of a selected consultancy analysis approach. Based on the research and subsequently logical reasoning, partly supported by empirically executed programs 5 internal factors are deduced to establish a 5-axis model. Findings are that purchasing can manage internal factors to improve its performance level to a certain extent. These factors influence each other in a way, that a significant performance level improvement consists of all factors under consideration of definite requirements. The outcome of this paper will help decision makers in a structured way to draw attention to influencing input factors.