An empirical investigation of lead-time reduction in purchasing groups: evidence from SMEs

Abstract

This paper aims to empirically examine the impact of horizontal cooperation in purchasing on the lead times of the orders from suppliers. Two groups of SMEs participating in purchasing groups were investigated for a nine month period of data collection. However, for one of the groups involved in cooperative transportation of the purchased goods, total lead-time was measured, and further analysis was conducted. The outcomes of this study show that firms involved in purchasing consortia face significant shorter lead times up to 45%. Meanwhile, the lead times for the firms cooperating in both purchasing and transportation tasks were shorter than for the other group. Additional managerial conclusions and unique contributions are drawn.