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Supplier selection and procurement in SMEs: insights from the literature on key criteria and purchasing strategies

Ferreira Ana Cristina, Silva Ângela

Engineering Management in Production and Services

2022

Vol. 14, no. 4

47--60

Effective strategic purchasing and supplier selection in companies provides businesses with leverage in acquiring goods and services. Thus, companies are in a better position to negotiate prices, discounts, delivery times and logistic channels. Also, strategic purchasing allows for performing a risk assessment to ensure the company’s profitability. This research aimed to identify the key currently deliberated by SMEs for supplier selection, considering such purchasing strategies as (1) cost reduction, (2) risk management, (3) global sourcing, (4) total quality management, (5) sustainable management and (6) supplier management. Also, it aimed to identify the emerging issues related to purchasing strategies. This research work performed a content analysis following a literature review. The Scopus indexation database was selected to conduct the document search. After the refinement process, based on 59 analysed documents, bibliometric assessment tools were applied to identify the key criteria for supplier selection. The TOP6 highest ranked criteria, which corresponds to 80 % of the most referred criteria, include: (1) the quality of goods; (2) compliance with the delivery times; (3) price/cost; (4) supplier reputation and/or market positioning; (5) geographical location; and (6) supplier performance history. The goal of strategic purchasing is to support the companies in achieving long-term goals through its integration into the company’s strategic planning process. It should be identified by the managers as an important resource. Several factors elevate the importance of strategic purchasing, namely, environmental protection, technology advances related to logistics 4.0, and risk assessment related to global sourcing and sustainability. The present research is in line with the findings of the referred literature, i.e., the application of prioritised criteria for the procurement and supplier selection operations in the industrial context, aiming to reduce lead times and logistic costs. The criteria must be aligned with the purchasing strategies adopted by the companies. The manuscript aims to demonstrate that the fundamentals of strategic purchasing strategies can contribute to the improvement of the SME supply process with the application of simple and cost-effective approaches.

Price tracking behaviour in Electronic Commerce and the moderating role of fair price perception

Victor V., Nathan R. J., Grabara J., Fekete-Farkas M.

Polish Journal of Management Studies

2018

Vol. 18, No. 2

375--387

With the rapid advancements in the Electronic Commerce sector, modern consumers are becoming increasingly aware of the prospects of the various pricing strategies, which have made their purchase decisions more sophisticated. Recent literature portrays an increased tendency among online shoppers to track product prices and wait for price markdowns prior to making their purchase decisions. This act of consumers is seen as strategic purchase behaviour, which is necessary for sellers to be aware of and frame their counter-strategies accordingly to prevent potential loss of revenue. This study aims at analyzing and measuring crucial factors that influence price tracking among online consumers. These include shopping experience, fair price perceptions and awareness about dynamic pricing. Using PLS SEM, this study also analyses the moderating effect of fair price perceptions on the overall shopping experience and price tracking behaviour of consumers. Statistical results reveal all three factors have significant direct and positive influence on price tracking behaviour and the moderation effect is significant and negatively influences consumer price tracking behaviour.

Dzięki szybkim postępom w branży handlu elektronicznego, nowi konsumenci stają się coraz bardziej świadomi perspektyw różnych strategii cenowych, dzięki którym decyzje dotyczące zakupów stały się bardziej złożone. Najnowsza literatura opisuje zwiększoną tendencję kupujących online do śledzenia cen produktów i oczekiwania na obniżki cen przed podejmowaniem decyzji zakupowych. Ten akt konsumentów jest postrzegany jako strategiczne zachowanie zakupowe, które jest konieczne, aby sprzedawcy byli świadomi i dostosowywali swoje przeciw-strategie, aby zapobiec potencjalnej utracie dochodów. Celem tego badania jest analiza i pomiar kluczowych czynników, które wpływają na śledzenie cen wśród konsumentów internetowych. Należą do nich: wrażenia z zakupów, uczciwe postrzeganie cen i świadomość na temat dynamicznych cen. Wykorzystując PLS SEM, niniejsze badanie analizuje również moderujący wpływ uczciwej percepcji cenowej na ogólne wrażenia zakupowe i zachowanie cenowe konsumentów. Wyniki statystyczne pokazują, że wszystkie trzy czynniki mają znaczący bezpośredni i pozytywny wpływ na zachowanie cen, a efekt moderacji jest znaczący i negatywnie wpływa na zachowanie konsumentów przy śledzeniu cen.