The use of total cost of ownership for strategic procurement: a company-wide management information system
Degraeve, Z Roodhooft, F van Doveren, B
Degraeve, Z
Roodhooft, F
van Doveren, B
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2005-01
Journal
Journal of the Operational Research Society
Book
Publication Volume
56
Publication Issue
1
Publication Begin page
51
Publication End page
59
Publication Number of pages
9
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Abstract
We present a general company-wide management information system for defining procurement strategies. We believe that existing practices for determining purchasing strategies can be improved and a new approach developed. The system uses total cost of ownership information. We argue that mathematical programming models should be used for exploiting this information, when evaluating the firm's strategic procurement options. As an example, we show how we have successfully applied our approach to develop a decision support system at Usinor, a European multinational steel company.
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Journal Issue
Keywords
35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour, 3509 Transportation, Logistics and Supply Chains, 46 Information and Computing Sciences, 4609 Information Systems