As firms have placed more emphasis on their core competencies and outsourced production and services to suppliers, effective cost management of purchases has become a critical factor in achieving corporate success. The Purchasing and Supply Management (PSM) function is generally responsible for obtaining goods and services from outside suppliers. Techniques such as total cost of ownership, supplier cost structure analysis, and target costing have become important tools for PSM to manage inbound supply costs. Results of a survey indicate that the perceptions of PSM by peer functions and top management, in terms of PSM's importance and accountability, are related to implementing the strategic cost management activities of total cost of ownership, supplier cost structure analysis, and target costing.
Stored only when both papers are in the corpus — 70 citations exist upstream.