The internal client relationship, demand management and value for money: A conceptual model

This article examines the cross-functional nature of the purchasing process in industrial markets. The authors take the view that on many occasions conflicts of preference will emerge between the purchasing department and its internal clients and affect the ability of the organisation to obtain value for money. This view is explored with reference to the problem of the fragmentation of spend—that is, where an organisation spreads its demand for a product across many suppliers. In the article, a conceptual model for interpreting the internal client relationship is presented. This is illustrated by a case study drawn from the UK’s National Health Service. r 2005 Elsevier Ltd. All rights reserved.