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Procurement's role in resolving demand – supply imbalances: an information processing theory perspective




TekijätLaari Sini, Lorentz Harri, Jonsson Patrik, Lindau Roger

KustantajaEmerald

Julkaisuvuosi2023

JournalInternational Journal of Operations and Production Management

Vuosikerta43

Numero13

Aloitussivu68

Lopetussivu100

DOIhttps://doi.org/10.1108/IJOPM-06-2022-0382

Verkko-osoitehttps://www.emerald.com/insight/content/doi/10.1108/IJOPM-06-2022-0382/full/html

Rinnakkaistallenteen osoitehttps://research.utu.fi/converis/portal/detail/Publication/179217627


Tiivistelmä

Purpose

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.

Design/methodology/approach

This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.

Findings

Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.

Practical implications

The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.

Originality/value

The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.


Ladattava julkaisu

This is an electronic reprint of the original article.
This reprint may differ from the original in pagination and typographic detail. Please cite the original version.





Last updated on 2025-27-03 at 21:44