THE CONNECTION BETWEEN TRAINING, ELECTRONIC ORDERING, STRATEGIC ALLIANCES AND SUPPLY CHAIN PROCUREMENT EFFICIENCY: AN EMPIRICAL STUDY

Kathie J. Shaffer

Peggy M. Dalton

Frostburg State University

ABSTRACT

This study investigates the relationship between total procurement spending per

procurement employee (a proxy variable for supply chain efficiency) and the average annual

spending on training per procurement employee, the percent of procurement spending via e-

activities, and the percent of procurement spending via strategic alliances. This study also

supports the existence of a relationship between the procurement spending per procurement

employee and the percent of procurement spending via Electronic Data Interchange (EDI).

The results of this study provide evidence that a larger proportion of industry spending

through electronic data interchanges has a negative effect on the procurement spending per

procurement employee. This study supports the hypotheses that there is a positive relationship

between the procurement spending per procurement employee and the average annual spending

on training per procurement employee and the proportion of industry spending occurring through

strategic alliances. Finally, the study provides evidence that industry average annual spending on

training per procurement employee has a positive effect on total procurement spending per

procurement employee: resulting in improved supply chain efficiency. Strategic alliances enable

procurement employees to purchase more, requiring fewer employees to purchase the same

volume, resulting in greater efficiency.