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Key supplier management : Barriers to: the “Key Supplierization” of the firm
in 26th IMP Conference, Budapest, September 2-4, 2010 2010 - 13 P.
Purpose of the paper: The paper deals with KSM (Key Supplier Management) which is the creation of a new mission (thus the creation of a new job, new practices, etc.) in a company so as to manage suppliers. KSM involves coordinating the company’s information and action in time and space in relation to an identified supplier in its entirety. The whole objective of KSM is to enable a company to generate an increased relational value (Henneberg et al., 2009; Pardo et al., 2006) compared with the
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one that could be forecasted with a “traditional management of suppliers”. Compared to what has happened with KAM on the marketing side of the company, KSM, on the purchasing side seems to encounter important difficulties relative to its implementation. The purpose of this paper is then to consider the existence of specific barriers the implementation of KSM..
Research method: In-depth interviews are conducted with 33 respondents within the purchasing functions of 10 multinational companies belonging to different industries using semi-structured interview following the structure used by Missirilian and Calvi (2004), which is based on the works from Homburg et al. (2002).
Research findings: The paper identifies three main obstacles that appear as more or less strong barriers to an easy implementation of key supply management. 1st barrier: the difficulty in implementing suppliers portfolios; 2d barrier: the narrow view of levers of value creation with suppliers; 3rd barrier: the everlasting lack of purchasing integration with other internal functions.
Main contribution: The paper proposes the idea of an asymmetry between purchasing and marketing situations. From a theoretical point of view the paper contributes to enriching scarce knowledge about KSM. Adopting a managerial point of view, the paper suggests a KSM position within the company that should be distinguished from the purchasing position and should appear as “an additional layer” in the organization.
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