Stop Misallocating Purchasing Resources
Lisa M. Ellram, Ph.D., C.P.M., C.M.A.
Lisa M. Ellram, Ph.D., C.P.M., C.M.A., Bebbling Professor of Business, W.P. Carey School of Business, Arizona State University, 480/893-2565; firstname.lastname@example.org
Corey Billington, Ph.D.
Corey Billington, Ph.D., IMD, Lausanne, Switzerland, Corey_Billington@yahoo.com
90th Annual International Conference Proceedings - 2005 - San Antonio, TX
Procurement organizations need to carefully consider the allocation of staff between direct and indirect (including services and MRO) procurement departments. The rapid and continuing growth of outsourcing is shifting the proportion of procurement spend away from direct procurement of parts for manufacturing toward the procurement of services, especially complex services like manufacturing or logistics. Yet, procuring complex services is quite challenging and in many cases more difficult than procuring direct materials due to the many intangible factors that are present in services, and the lack of well established tools for analyzing the services spend.