Organizational Relationships in Purchasing

Abstract

This article reports the results of a major purchasing organization research study conducted in 1987 under the auspices of the Center For Advanced Purchasing Studies. The research involved the purchasing departments of 297 large U.S. organizations, primarily from the manufacturing sector.The article focuses on results produced by the study in nine key areas: (1) departmental size and composition, (2) the degrees of centralization and decentralization employed, (3) hierarchical reporting relationships, (4) the specific operating units that report to Purchasing, (5) the most recent additions to Purchasing's organizational structure, (6) the most recent additions to Purchasing's operating responsibilities, (7) the extent to which the materials management concept is utilized, (8) functions typically included in the materials management organization, and (9) the title of the chief purchasing officer.The findings are compared with those of several earlier studies. And the author discusses the implications of the results for management of the purchasing function during the next decade. Generally speaking, the study indicates that the purchasing function has become broader in scope and responsibility, and concludes that the chief purchasing officer needs to have a more varied background with a wider range of experience to cope with the evolving increased job requirements.