The pursuit of global purchasing synergy

The pursuit of synergy is generally considered an important strategic thrus t. In multiplant and multinational corporations, the quest for global effic iency and effectiveness has led to increased centralization and coordinatio n of the purchasing function. The centralization-decentralization issue is debated at length in the purchasing literature as well as in the marketing and strategic marketing literature. However, most authors limit their discu ssion to arguments in favor of or against centralization and to criteria to select a suitable approach. Insights into the process of achieving global purchasing synergy as well as specific managerial guidelines are lacking. T his article aims to bridge the gap between the literature stressing the nee d for achieving purchasing synergy on the one hand and specific implementat ion guidelines for managers on the other hand. In order to do so, we link t he process aspects of global supply coordination to satisfaction levels exp erienced at both headquarter and plant level. As a result, managerial impli cations to successfully tap global purchasing synergy are formulated. (C) 2 000 Elsevier Science Inc. All rights reserved.