Decision‐making Support for Strategic Purchasing

With the globalisation of markets, firms are continuously searching for ways to remain competitive. In such an environment the purchasing and management of raw materials, supplies, parts, etc., has emerged as a critical area for a firm to achieve its strategic goals. Purchasing controls typically one‐quarter to one‐third of the expenses incurred by the firm in manufacturing its products. The objective of the article is to identify and illustrate how different computer‐based decision support tools/techniques could be applied to various purchasing decisions. Through in‐depth applications the potential improvements in managerial effectiveness, increased user involvement, and ease in problem solving are highlighted.