THE ANALYSIS OF PURCHASING CONSORTIUM FOR SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.11113/jt.v77.6696Keywords:
Purcashing management, purchasing consortium, small and medium entreprisesAbstract
Lack of the buying power of small and medium enterprises (SMEs) in purchasing their raw material could hinder their competitiveness. The low buying power generally caused by the fact that SMEs purchase their raw material in small lot. Purchasing consortium offers SMEs to increase their buying power and obtain better pricing through the collective buying mechanism amongst SMEs. This paper proposes purchasing consortium mechanism using joint replenishment and vendor managed inventory. The analysis shows that SMEs gain potential cost savings in sourcing their raw material through the proposed mechanism.Â
References
S.K. Paik, P. K. Bagchi, T. Skjott-Larsen, and J. Adams. 2009. Purchasing Development in Small and Medium-Sized Enterprises (SMEs). Supply Chain Froum. An International Journal. 10: 92-107.
A. D. Pressey, H. M. Winklhofer and N. X. Tzokas. 2009. Purchasing practices in small- to medium-sized enterprises. An examination of strategic purchasing adoption, supplier evaluation and supplier capabilities. Journal of Purchasing & Supply Management. 15: 214-226.
C. Zhu and L. Liang. 2009 . SME Oriented Purchasing Consortium Based on MAS. presented at the International Symposium on Information Engineering and Electronic Commerce, Ternopil.
E. Tella and V. M. Virolainen. 2005. Motives behind purchasing consortia. International Journal of Production Economics. 93–94: 161-168.
F. Schotanus, J. Telgen, and L. d. Boer. 2010 Critical success factors for managing purchasing groups. Journal of Purchasing & Supply Management.16: 51-60.
S. Viswanathan and R.Piplani. 2001 .Coordinating supply chain inventories through common replenishment epochs. European Journal of Operational Research. 129: 277-286.
D. J. Bowersox, D. J. Closs, and T. P. Stank. 2003.How to master cross-enterprise collaboration. Supply Chain Management Review. 7: 18-27.
H. L. Lee. 2002. Aligning Supply Chain Strategies with Product Uncertainties. California Management Review. 44: 105.
P. Keskinocak and S. Savasaneril 2008. Collaborative Procurement Among Competing Buyers. Naval Research Logistics. 55: 516-540.
F. Schotanus and J. Telgen. 2007. Developing a typology of organisational forms of cooperative purchasing," Journal of Purchasing & Supply Management.13: 53-68.
W. Yu. 2011. Cooperative Purchasing in SMEs. Evidence from China’s retail sector. presented at the POMS 22nd Annual Conference, Reno, Nevada, U.S.A.
H. Ghaderi and Z. Leman. 2013. Horizontal collaboration in purchasing. A successful case from small and medium enterprises (SMEs) African Journal of Business Management. 7: 750-753.
M. I.,Qureshi, Khan, N. U., Rasli, A. M., & Zaman, K. 2015. The Battle Of Health With Environmental Evils Of Asian Countries. Promises To Keep Environmental Science And Pollution Research. 1-8.
M. I ,Qureshi., Rasli, A. M., Awan, U., Ma, J., Ali, G., Alam, A., & Zaman, K. 2014. Environment and air pollution: health services bequeath to grotesque menace. Environmental Sciences And Pollution Research. 22(5): 3467-3476
Downloads
Published
Issue
Section
License
Copyright of articles that appear in Jurnal Teknologi belongs exclusively to Penerbit Universiti Teknologi Malaysia (Penerbit UTM Press). This copyright covers the rights to reproduce the article, including reprints, electronic reproductions, or any other reproductions of similar nature.