The Role and Influence of Factory Level Purchasing within a Corporate Structure

Abstract

An investigation has been carried out within a multinational engineering corporation into the role of purchasing within a corporate structure. The main research method was case studies of corporate purchasing and three factory buying departments. It was found that the division of responsibilities between corporate and factory levels had a major effect on the role of purchasing at factory level resulting in the latter occupying a service role in relation to other departments. It is also pointed out that the use and usefulness of various purchasing techniques is also influenced by the relationship between corporate and factory purchasing and factors such as tighter control of stocks, pressures from customers, purchasing department staffing levels, the economic situation, the level of computerisation and the role of purchasing in relation to other departments.