Home » Operations » Purchasing

Recent Thinking

Featured Operations, Purchasing Article, Climate change and supply-chain management
Climate change and supply chain management

July 2008

Top companies regard climate change as an opportunity to get closer to suppliers—effectively reducing both costs and carbon in their supply chains.

Featured Operations, Purchasing Article, capital projects for competitive advantage
Managing capital projects for competitive advantage

June 2008

Investment in capital projects is rising. First-rate contracting will help companies to get a significant leg up on their rivals.

Featured Operations, Purchasing Article, interview Lenovo's chief procurement officer
Integrating purchasing in M&A: An interview with Lenovo's chief procurement officer

May 2008

The chief purchasing officer of Lenovo explains how he helped to create the operational basis for its continuing evolution from a Chinese powerhouse into a global one.

The Archive

2007
Inventing the 21st-century purchasing organization

November 2007

To get the most out of the purchasing function, top-performing companies redefine its role and ensure that its goals align with corporate strategy.

The talent factor in purchasing

February 2007

Better purchasing can be beneficial in surprising ways, some far removed from purchasing itself.

2006
Splitting demand from supply in IT

September 2006

Dividing IT into demand and supply organizations helps companies realize the full potential of their IT investments.

The challenges in Chinese procurement Premium Content

June 2006

Companies that source goods from China must overcome several challenges to realize the opportunity in full.

2004
Getting sourcing right in China Premium Content

December 2004

Three issues hold the key to working successfully with Chinese suppliers.

Global sourcing in the auto industry

December 2004

Political sensitivities may slow the trend but won’t stop it in the longer run.

Supplying auto parts to the world Premium Content

December 2004

Lu Guanqiu, the founder of China’s third-largest private company, discusses the future of China’s automotive industry.

Managing the cost of real estate

November 2004

To cut real-estate expenses, corporations must learn to calculate their true occupancy cost and to measure their performance.

2003
Purchasing lessons for schools

November 2003

Districts that improve their purchasing processes can capture significant savings.

The promise of purchasing software Premium Content

November 2003

New software can provide procurement managers with more information about their operations but can’t overcome flawed processes.

Better purchasing for auto suppliers Premium Content

August 2003

Auto suppliers understand exactly what steps to take to improve procurement but thus far haven’t executed them.

More bang for the IT buck Premium Content

May 2003

IT procurement must be a capability, not a mere exercise in cutting deals.

1998
Purchasing’s big moment - after a merger Premium Content

February 1998

Savings can amount to half the acquisition premium. Ensuring that reduced costs actually get to the bottom line can be as challenging as mining for gold. Five mistakes to avoid.

1997
Purchasing: No time for lone rangers Premium Content

May 1997

The objective must shift from cost to competitive advantage. Half your purchasing group may need to be replaced. Operating at the hub of a supplier network.

Reducing the cost of goods sold: Role of complexity, design, relationships Premium Content

May 1997

Manufacturers’ ultimate goal should be “virtual vertical integration” — a degree of collaboration with suppliers that enables them to enjoy the advantages of an integrated company. In the process, they lose the drawbacks of high capital exposure and the possibly inferior performance of areas of the business outside their core expertise.

1993
Buying your way to the top Premium Content

August 1993

Too long the “forgotten” function, purchasing can—with the right strategic approach—powerfully enhance a company’s economic performance.

Member Log in

forgot password?

visit The McKinsey Quarterly on Facebook