Inter-functional coordination of purchasing and logistics: impact on supply chain performance

ABSTRACT

The aspects of interfunctional coordination, supply management and strategic purchasing are seen as indispensable elements of SCM-concepts. In contrast, the linkage of interfunctional coordination and strategic sourcing is mostly unexplored. In general, the area of interfunctional coordination at the purchasing-logistics interface is given less consideration. Therefore, this study investigates this particular interface referred to strategic sourcing decisions using extensive empirical evidence based on a web-based survey with 132 purchasing managers. Based on empirical data and the PLS-approach, this study analyses the performance impact based on interfunctional coordination of strategic sourcing decisions. In sum, the study gives valuable insights into the relationship of interfunctional coordination, conflicts and performance at the logistics-purchasing-interface. Following a social exchange perspective, the results demonstrate the relevance of interfunctional aspects to achieve supply performance. Therefore, the study illustrates that a distinct establishment of communication and cooperation processes does not necessarily lead to higher supply performance when the interaction in that relationship remains social unattractive. On the contrary, if the social interaction is based on a positive or social attractive relationship between the interfunctional areas, then the interaction at the purchasing-logistics interface could lead to increased supply chain performance.

KEYWORDS:

• Interfunctional coordination
• strategic purchasing
• supply management
• supply performance
• supply chain management

Disclosure statement

No potential conflict of interest was reported by the author.

Additional information

Notes on contributors

Tobias Breitling

Tobias Breitling is currently manager in process and system design and development in the area of purchasing, logistics and supply chain management in the German automotive industry. Before, he has been a research associate at the Chair of Logistics and Supply management at the University of Stuttgart. He received his doctoral degree from the University of Stuttgart, Germany. His research interests include organisational, interorganisational and interfunctional issues in logistics and supply management, strategic supply management issues and human resource topics in logistics, supply and supply chain management. His research has been published in various international and national journals, in two books as well as in form of work and research reports and conference proceedings.