Purchasing performance management systems: an empirical investigation

Abstract

This article aims at further developing the purchasing performance management systems (PPMSs) body of knowledge, assuming the wider perspective of the adoption process rather than key performance indicators (KPIs) only. In particular, the research questions are focused on understanding what are the most adopted indicators, what are the key elements characterising the implementation process and what are the differences among different organisational levels and different purchasing categories. The literature provides a framework for classifying purchasing KPIs, identifying the implementation process and the PPMS architecture, thus supporting the empirical research protocol. Nine case studies of large multinationals belonging to different industries are conducted. Empirical evidence shows that companies are still adopting mainly an external perspective, by focusing on performance measurement efforts on suppliers. Widely adopted indicators mainly measure cost, time and quality. However, the purchasing department has acquired an important role within the organisation and new performance indicators have been created; flexibility, innovation and sustainability are becoming increasingly important.

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