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Platform Organization of Procurement Guiding Early Supplier Involvement in New Product Development——Single Case Study on Haier’s Procurement Organization |
ZHOU Ying,JIA Fu,WANG Fei,JIANG Yan |
1. Minzu University of China, Beijing, China; 2. University of York, York, UK; 3. Middlesex University, London, UK |
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Abstract This paper takes Haier as a case to explore how to design a platform organization of procurement to effectively guiding Early Supplier Involvement (ESI) in New Product Development (NPD). The result shows that in the era of internet, openness and capability of big data analysis, the two new dimensions should be added into the organizational design of procurement. A platform organization of procurement is put forward in this paper, with the structural characteristics and coordination characteristics summarized. And the mechanisms to guide ESI into NPD are revealed, such as modular design and procurement, interaction between global suppliers and users at zero distance. Different from lean procurement strategy in the industrial era, agile procurement strategy should be taken in the era of internet which shows the heterogeneous demand. Accordingly, we should create a platform organization of procurement with authority decentralization and centralized coordination in a dialectical unity. Shift from economies of scale to economies of process, and economies of information and learning.
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Received: 09 May 2019
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