Title: Horizontal collaboration in logistics: a feasible task for group purchasing

Authors: Hadi Ghaderi; Soroush Avakh Darestani; Zulkiffle Leman; Mohd Yusof Ismail

Addresses: Department of Mechanical and Manufacturing Engineering, University Putra Malaysia, Serdang, Selangor 43400, Malaysia. ' Department of Mechanical and Manufacturing Engineering, University Putra Malaysia, Serdang, Selangor 43400, Malaysia. ' Department of Mechanical and Manufacturing Engineering, University Putra Malaysia, Serdang, Selangor 43400, Malaysia ' Department of Manufacturing Engineering, University Malaysia Pahang, Pahang, Kuantan 26300, Malaysia

Abstract: Current attention to the argument of collaborative procurement has been investigated by both academia and industry practitioners as the concept of group purchasing. This paper first reviews the literature on horizontal collaboration in purchasing task and recognises the interface between purchasing progress and the logistical point of view of supply as the accomplishing task of the procurement cycle. Secondly, it examines the effects of a successful horizontal collaboration in logistics activities among a group of small and medium sized food enterprises (SMEs) which have participated in a purchasing consortium. |Homo-regional firms| are introduced as a logistics concept illustrating the potentiality in establishing horizontal collaboration in logistics activities in order to gain a competitive advantage. Methodology consists of data collection through quantitative questionnaires in direct contact with the firms. The results show a reduction of 10% to 30% in outbound logistics cost in comparison to the time period in which the firms were undergoing procurement by themselves.

Keywords: logistics cooperation; horizontal collaboration; purchasing consortia; group purchasing; collaborative procurement; small and medium-sized enterprises; food SMEs.

DOI: 10.1504/IJPM.2012.044153

International Journal of Procurement Management, 2012 Vol.5 No.1, pp.43 - 54

Published online: 10 Dec 2011 *

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