Customer-driven Purchasing Empirical Applications

Purpose The purpose of this paper is to illustrate application of a method for customerdriven purchasing. Design/methodology/approach A method for customer-driven purchasing was developed and applied within a research project using a combination of a multiple case study and focus groups. The research project involved six companies within different lines of trade and the method was applied to more than 20 products in the case companies. In this paper, the applications to four products at three companies are presented. Findings When applying the method, the case companies received several insights and direct results. All three companies found items that could be sourced either with focus on efficiency or responsiveness. Direct visible results were, for example, shortened supply lead time for customized items and reduced inventory levels for standard items. Research limitations/implications (if applicable) All the companies included in the study can be referred to as medium-sized or large companies where at least a fraction of the sales are customer-order driven and/or customized. Further research could therefore focus on applications at small manufacturers. Of further interest is also the method’s applicability during product development projects. Practical implications The importance of establishing supplier relationships based on the order winners for sourced items, as opposed to based on cost per item has been identified. Additionally, the negative effects of long supply lead time for customized items have become evident. Originality/value This research incorporates knowledge about CODP-differentiated competitive priorities in the purchasing process.