The impact of strategic purchasing on supply chain performance of the bottled water industry in Turkey

Abstract

Efficient and effective supply chain management (SCM) aims to provide high quality products and excellent customer service and is a significant component in obtaining a competitive advantage. Supply chain management has advanced to contain strategic partnership arrangements with suppliers and service providers throughout the supply chain. Every action in the supply chain is important, and downfall at any action - be it of strategy, documentation or performance - can negatively affect business objectives. Plenty of companies now acknowledge that a powerful and solid supply chain is one of the most crucial elements in attaining increased profitability and shareholder value. Effective supply chain management has the ability to manage costs and enhance the compliance with company standards and key performance indicators (KPI). This research examines the relationship between strategic purchasing and supply chain performance (in terms of vendor performance, material quality, and inventory level) of the bottled water industry in Turkey. The results indicate that strategic purchasing is positively related to overall company performance.

Keywords: Strategic purchasing, Bottled water industry, Supply chain performance, Turkey