Case Analysis in Logistics

Abstract

Focusing in the procurement function operated in a SCM environment, this paper presents results of a research project conducted to (1) develop a framework for the implementation of changes in procurement structures oriented to enhance competitiveness of the SC and minimize the Transfer Pricing compliance issues, and (2) develop a flowchart to apply the framework for implementation of changes in the procurement structure of a Multinational Enterprise. The notion of companies´ relations with suppliers and customers as external forces to work with using the firm´s resources as business strategy enabler, provides a wide theoretical reference used as analytical tool. The complexity of the phenomenon explored in this research reveals a network type structure of the existing relations among decision-making level, operational or execution level at functional unit (in this analysis procurement) and organizational structure changes for procurement functions. Results for the first research objective, suggest the presence of two dimensions of organizational change (1) a general perspective of change at organization level (general organizational structure) and the specific dimension at organizational unit level (procurement or other). This network vision is a useful tool for top management level (CEO, etc) to understand the magnitude of change required to implement a new business strategy as well as the impact of it on the full organization. For implementation framework and implementation flowchart development, derived data analysis of the two major surveys on the matter was done to identify main procurement processes and activities performed by the correspondent organizational unit. The exemplification (or hypothesis testing in quantitative studies) is done using a case study developed for a company in Latin America that perform a simple industrial process. Application of results in the case study provide evidence that he framework developed throughout the research study served to systematically guide the implementation of structural changes in the procurement structure of an organization.