ABSTRACT

This chapter discusses the meaning and importance of purchasing strategy and strategic purchasing and provides guidance on how purchasing maturity models can be used to evaluate how strategic the purchasing function is within a company. We discuss the importance of considering different purchase categories and explain the different ways of organizing purchasing, exploring how purchasing and sustainability functions can be integrated. We evaluate the advantages and disadvantages of centralizing or decentralizing the purchasing organization. The chapter evaluates the skills and competencies required of purchasing managers and explores how development of sustainable purchasing and supply management may require new skills and competences. Finally, the chapter considers the special case of public procurement and explores how public procurement can be used as a lever for sustainable development. The end-of-chapter case study focuses on global coffee giant Starbucks.