A valuable reference tool, the Article Index is a comprehensive list of articles that have appeared in the Journal of Supply Chain Management (formerly International Journal of Purchasing and Materials Management, Journal of Purchasing & Materials Management and Journal of Purchasing). Articles are organized by subject for easy locating and study.
Journal Article Index
Term selected: Buying Strategies
"As the PMI Turns: A Tool for Supply Chain Managers" ,
Vol. 41, No. 1 (Winter 2005), p. 30.
Supply chain managers use the PMI, an index of business activity and proxy for the general business cycle, to obtain valuable information important to strategic managerial planning. This research explores a methodology to provide managerial insight into the general business cycle by tracking and forecasting cycle turns in the PMI. A regression model is developed based on inherent cycles in the PMI between 12 and 65 months to forecast turning points for the index and anticipate changes in the business cycle, which is superior to the more commonly used Box-Jenkins forecasting technique. Strategic planning using this knowledge allows management to optimally adjust long-term levels of production, inventory, employment and orders as necessary.
Conceptual Perspectives on Selecting the Principal Variables in the Purchasing Managers’ Index,
Vol. 42, No. 2 (Spring 2006), p. 44.
The current research investigates the choice of principal variables for computing the Purchasing Managers’ Index (PMI). To this end, the principal components variable selection strategy considered by Jolliffee (1972, 1973) is applied to monthly data on five key diffusion indexes for the period from January 1948 to October 2004, compiled by the Institute for Supply Management (ISM). Results do not support the ISM’s current practice of assigning different weights to the five diffusion indexes (i.e., the highest weight to the new orders diffusion index and the lowest one to the inventory diffusion index). Findings also support that a simpler PMI based solely on the employment diffusion index, one of the five key PMI indicators, can be computed without loss of too much information. In many cases, the PMI series offered in this paper outperforms the PMI series proposed by others.
"Enhancing Supply Decisions through the Use of Efficient Marginal Costs Models" ,
Vol. 38, No. 4 (Fall 2002), p. 4.
Supply managers are often faced with the challenge of making effective purchasing decisions in acquiring production materials, supplies, and capital equipment. The complexity of the procurement process has mainly intensified due to the increased emphasis on delivery performance, product quality, and technical service apart from traditional cost measures. This article presents a set of multi-criteria models for estimation of efficient marginal costs of supplier outputs, which provide critical information to managers on the values of outputs. The marginal costs are utilized for making effective purchasing decisions by setting optimal output prices for negotiation on supplier bids. The models are tested on an actual dataset of suppliers.
"Reverse Marketing: A Synergy of Purchasing and Relationship Marketing" ,
Vol. 31, No. 3 (Summer 1995), p. 28.
Firms increasingly realize that dramatically changing market conditions require significant changes in their purchasing function. In more and more firms, purchasing is becoming proactive and strategically important. This phenomenon has been called "reverse marketing." As the term implies, there are clear similarities with the marketing concept. This article explores the concept by describing how companies can implement reverse marketing by making use of well-known marketing concepts and tools. A detailed description of a fictitious case illustrates how basic marketing principles can be used to achieve proactive purchasing.
"SCM Involving Small Versus Large Suppliers: Relational Exchange and Electronic Communication Media" ,
Vol. 41, No. 1 (Winter 2005), p. 18.
This article develops and tests hypotheses on relational exchange and electronic communication media in supply chains involving small versus large suppliers. Through a combination of focus groups, e-mail surveys and case studies, the article addresses the differences in relational exchange due to supplier size. Findings indicate significantly greater use of relational exchange and electronic communication media with large suppliers compared to small suppliers. The article offers solutions to reducing the relational and technological gaps between large and small suppliers.
"The Role of Value-at-Risk in Purchasing: An Application to the Foodservice Industry" ,
Vol. 38, No. 2 (Spring 2002), p. 38.
Value-at-Risk (VaR) estimates the downside risk of a portfolio of market-priced assets at a particular confidence level over a specified time horizon. This article is a tutorial that introduces purchasing managers to the concept of VaR and its potential applications in the purchasing process. It discusses estimation alternatives and issues, and then examines and highlights the role of VaR in the context of a commodity end user with a specific example for a foodservice business. Further, the practical implementation issues of VaR in a corporate environment in general and the purchasing function in particular are discussed. The example and discussions are widely applicable to any commodity end user (e.g., energies, metals, or food-related commodities), providing potential applications to practitioners and research ideas to academics.