Managing the Global Supply Base through Purchasing Portfolio Management

It is generally agreed that ‘how to source globally ’ has become a critical strategic decision for companies competing on a global basis. In contrast with an increased focus on global sourcing and supply chain management, little is known about problems and solutions to the actual integration and coordination of procurement across worldwide business units. Based on an in depth case study, derived from a multinational Dutch chemical company, the usefulness of a portfolio approach to the management of a global supply base has been explored. The results indicate that the Kraljic’s purchasing portfolio approach allows for developing effective purchasing strategies and managing a global supply base