PROCUREMENT PATTERNS – A BEHAVIOURAL STUDY

A key finding from a research involving a study of the purchasing performance factors in EPC firms found that the ‘buying personality’ of the professionals in charge of the purchasing function, had a significant bearing on the operational efficiency and success of the engineering, procurement, and construction (EPC) firms.

- Gitesh Chavan

A key finding from a research involving a study of the purchasing performance factors in EPC firms found that the ‘buying personality’ of the professionals in charge of the purchasing function, had a significant bearing on the operational efficiency and success of the engineering, procurement and construction (EPC) firms. This finding provides a very crucial guideline for the human resource teams of EPCs in their employee hiring and performance evaluation systems and processes.

This is the first of its kind study conducted globally to gain additional insights into the different types of buying behaviours, also known as purchasing performance (PP) factors. PP models for EPC firms have not been published nor validated empirically, nationally or internationally prior to this study. The research was carried out on a global level across verticals such as oil and gas, metals & mining and construction, considering views of Industry experts from countries like USA, UK, Australia, UAE, and India. Additionally, the research also reviewed purchasing spend data in India, covering at least fifty years.

As the dynamics of business environments changed over the years, purchasing departments in organisations had to manage supplier relationships in a volatile, uncertain, complex, ambiguity (VUCA) era. Meanwhile, the role of the purchasing function also underwent considerable changes - from being just a clerical function to a strategic function, with the integrative buyer-supplier relationship receiving high importance.