Date of Conferral
2022
Degree
Doctor of Business Administration (D.B.A.)
School
Business Administration
Advisor
Betsy Macht
Abstract
AbstractBusiness leaders continually face challenges with the rising cost of materials. Automotive purchasing managers need to develop strategies to manage the cost of materials. Grounded in resource dependency theory, the purpose of this qualitative multiple case study was to explore strategies purchasing leaders in the automotive industry use for managing material costs. Data collection included semistructured interviews and documentation, including purchasing policies and directives. The participants comprised four automotive purchasing managers who formulated and implemented material cost strategies. Five themes were identified using thematic analysis: (a) negotiation, (b) total cost of ownership, (c) reducing design complexity, (d) supplier strategic relationship, and (e) role of information technology. A key recommendation for purchasing managers is to use third-party sources to benchmark materials prices and utilize cost engineers to calculate and analyze the total cost of ownership of critical materials purchased by the firm. The implications for positive social change include the potential to develop sustainable partnerships with local companies to help create jobs for residents of the area and support local social programs.
Recommended Citation
Wenah, Obundah, "Strategies Automotive Purchasing Managers Use for Managing Material Costs" (2022). Walden Dissertations and Doctoral Studies. 13888.
https://scholarworks.waldenu.edu/dissertations/13888
