Measuring Supply Management’s Budget Effects: Introduction of Return on Spend as an Indicator of Supply Management’s Financial Effectiveness

Foreword......Page 6
Preface......Page 8
Overview......Page 9
Table of Contents......Page 11
Index of Appendixes......Page 14
List of Figures......Page 15
List of Tables......Page 18
List of Abbreviations......Page 19
1.1 Supply Management’s Bottom Line Impact – A Never Ending Issue?......Page 21
1.2 Objectives and Research Questions of his hesis......Page 25
1.3 Course of Investigation......Page 26
2.1 Supply Management’s Role and Corporate Value Contribution......Page 29
2.1.1 Effective Supply Management – Key for Becoming an Equal Business Partner......Page 30
2.1.2 Purchasing Performance Versus Performance of Purchasing – A Modified Understanding of Supply Management’s Value Contributi......Page 33
2.1.3 Different Issue, Participants, and Interests – A Principal Agent Perspective......Page 37
2.2.1 Discussion of Different Performance Management Systems as Potential Role Models for Supply Management’s Effectiveness Indicator......Page 40
2.2.2 Discussion of Different Financial Performance Indicators as Potential Role Models for Supply Management’s Financial Effectiveness Indicator......Page 45
2.2.3 Supply Management’s Budget Effects as Refined Savings and Basis for Financial Effectiveness Measurement – An Integrated Budgeting Approach......Page 55
2.3.1 Process-Related Implications – A First Draft of an Integrated Budget Effects Measurement Process......Page 64
2.3.2 Organisational Implications – The Consideration of Soft Factors Within the Context of Change......Page 69
2.3.3 Research Design and Process from the Design Sciences Perspective......Page 71
2.4 Interim Result: Return on Spend as Newly Defined Indicator of Supply Management’s Financial Effectiveness......Page 80
3.1 Quantitative Methodology......Page 83
3.1.1 Questionnaire Design......Page 84
3.1.2 Data Collection......Page 86
3.1.3 Sampling......Page 87
3.2 Status Quo of Savings Measurement Practices......Page 88
3.2.1 Sample Characteristics......Page 89
3.2.2 The Relevance of Measuring Supply Management’s Bottom Line Impact......Page 90
3.2.3 Current Savings Measurement Practices......Page 92
3.3 Requirements for Supply Management’s Budget Effects Measurement......Page 99
3.3.1 Components’ Relevance for an Adequate Measurement Approach......Page 100
3.3.2 Dependence of Measurement Certainty on Specific Measurement Components......Page 103
3.3.3 Design Implications of the Survey Results for the Measurement Approach – A Second Draft of an Integrated Budget Effects Measurement Process......Page 105
3.4 Interim Result: Existent Need and Preparedness for Advanced Savings Measurement in Practice......Page 110
4 Measurement Process Design: Measuring Supply Management’s Budget Effects – A Qualitative Approach......Page 113
4.1.1 The Different, Applied Qualitative Methodologies......Page 114
4.1.2 Identification of Contextual Issues in Practice to be Aware of in the Further Concept Establishment – A Contextual Exploration......Page 124
4.1.3 Consolidation and Classification of the Different Relevant Contextual Issues......Page 142
4.2.1 Definition of Measurement Prerequisites – Design Rule 1......Page 151
4.2.2 Outline of a Comprehensive Supply Planning Process – Design Rule 2......Page 157
4.2.3 An Integrated Budgeting Approach – Design Rule 3......Page 165
4.3 From Planning to Measurement – A Structured and Integrated Budget Effects Measurement Approach......Page 175
4.3.1 Realisation and Monitoring – Design Rule 4......Page 176
4.3.2 Measurement and Reporting – Design Rule 5......Page 181
4.3.3 Process-Design Implications of the Case Study Research - The Final Draft of an Integrated Budget Effects Measurement Process......Page 192
4.4 Interim Result: Five Design Rules as a Guideline for the Configuration and Functional Set-Up of the Budget Effects Measureme......Page 194
5.1 Definition of Measurement Process Requirements......Page 197
5.1.1 One-Dimensional Requirements: Data or Process or Behaviour......Page 198
5.1.2 Two-Dimensional Requirements: Data & Process & Behaviour & Data......Page 201
5.2 Identification and Discussion of Measurement Process Inhibitors......Page 203
5.2.2 Requirement-Gap-Analysis – Requirements Versus Status Quo......Page 204
5.2.3 Discussion of Inhibitors – Data, Process, & Behaviour......Page 206
5.3.1 Corporate Enablers......Page 213
5.3.2 Supply Management-Specific Enablers......Page 215
5.3.3 Implementation Process – Design Rule 6......Page 217
5.4 Interim Result: One Design Rule as a Guideline for the Implementation and Organisational Set-Up of the Budget Effects Measurement Process......Page 222
6.1 Limitations of Research......Page 225
6.2 Future Research......Page 226
6.3 From Planning to Measurement – Six Design Rules as Guidance for a Solid Measurement Approach of Supply Management’s Budget Effects......Page 227
Reference List......Page 235
Appendix......Page 257