Summary of procurement's mediating role in SCI
| SCI dimensions (aggregate dimensions) | Integration dimensions (2nd order themes) | Responses to structural: (S) and dynamic (D) complexity identified in the data (1st order concepts) | ||
|---|---|---|---|---|
| Alpha | Beta | Gamma | ||
| Internal integration | Procurement mediation roles | S: Procurement project leaders act as the hub between purchasing, engineering and production, participating in sub-projects, monitoring quality and material needs, and aligning flows of hundreds of thousands of components (2) Job rotation brings engineering/project experience into procurement (2; 8). How to optimise procurement coordination roles requiring broad supplier/market/product knowledge despite difficulties in recruiting experienced individuals (1; 2) D: N/A | S: The project/product sourcing manager oversees sourcing activities for a product or project, ensuring contracts, compliance, costing, and strategy, while acting as a link between engineering and strategic procurement, without direct supplier ownership (14). Close procurement–engineering collaboration, including role rotation, aligns performance goals with sourcing choices for better decisions (9) D: N/A | S: The procurement Point of Contact lead offset buys, evaluate tenders and supply chain risks, drive make-or-buy decisions, and ensure customer requirements are incorporated into supplier contracts (25). It requires broad supplier/market/product knowledge, and it is hard to recruit experienced individuals (25) |
| Cross-functional orientation | S: Promote cross-functional mindsets (1; 2); break down functional silos and create forums to align strategies and roadmaps (1, 2, 6); Enhance supplier interfaces to reduce functional silos and foster holistic engagement (4); The procurement team includes a systems engineer, a buyer, and a Supplier Quality Manager (SQM). The engineer defines specs, procurement manages commercial terms, and the SQM ensures quality (2) D: N/A | S: Promote cross-functional mindsets (11); Align technology roadmaps across functions to ensure shared direction/priorities (12); Procurement should lead cross-functional category work, aligning sourcing and engineering on future technologies outside projects (11). Enhance supplier interfaces to reduce functional silos and foster holistic engagement (11; 12) D: N/A | S: Break down functional silos and create forums to align strategies and roadmaps (21); enhance supplier interfaces to reduce functional silos and foster holistic engagement (25) D: N/A | |
| Cost-conscious design | S: D: Attempt design to cost with cross-functional sourcing; initial low-price picks raised total cost later (3) | S: Improve manufacturing cost efficiency through cross-functional integration (18; 19) D: Freeze/change designs or educate engineers to expand sourcing options. (12, 18, 19) | S: N/A D: N/A | |
| Organisational routines | S: N/A D: Early visibility of long-lead-time items (3, 5). Sourcing long-lead-time items before final specifications are released (2; 3; 5); align with engineering on “first-time right” to avoid engineering changes (2) | S: N/A D: N/A | S: N/A D: N/A | |
| Obsolescence management | S: Mediate between ILS, procurement, and engineering to ensure a clear internal interface (5) D: Coordinate component support until implementation or delivery (8) and communicate contractual requirements for functionality and guarantees during development and production (8) | S: N/A D: During product development and production: communicating contractual requirements on components and systems for functionality maintenance and guarantees (8; 14). When contracts lapse due to delays, last-time buys or extensions are required (14) | S: N/A D: N/A | |
| External (supplier integration) | Early supplier involvement | S: With immature technologies (3; 6), standard procurement fails; mitigate by forming selected sole-source partnerships on critical systems and co-develop requirements, align capabilities, and reduce risk (1) D: Involve suppliers early in requirements definition and offer phases to manage long lead-time items changes and secure cost inputs before award (1; 2) | S: Post-award supplier integration focused on prototypes and lead-time compression; involvement is early in the execute phase, not pre-award (11) D: Engage with suppliers using a sales-oriented procurement mindset to secure commitment, prepare for change and align expectations (11). Important that the suppliers are transparent about design changes (11) | S: Improve manufacturability and time-to-market (22, 25); secure supplier commitment for complex, low-volume custom orders (25); lock long-term sole-source contracts to lift margins (25) D: Involve suppliers early in market and bid phases to assess capabilities, analyse evolving customer requirement impacts, coordinate quotations, and evaluate supply chain risks (25) |
| Supplier capabilities alignment | S: Favouring high-TRL suppliers for predictability and low-TRL ones for ETO adaptability (6). Partner with ETO-experienced suppliers for custom needs (3) D: N/A | S: When suppliers can't meet our performance expectations, we work with engineering to redesign them out, though doing this from the start would avoid costly redesigns. (11) D: N/A | S: Source from suppliers who design to functional specs and clearly disclose solution and system impacts (26) D: N/A | |
| Supplier lock-in | S: N/A D: Short system lifespans make end-of-life challenging (8); early notification compliance is inconsistent, especially for low-volume suppliers where influence is limited (15). Establish EOL management and supplier agreements to manage long-lead times and strengthen long-term commitment (4, 6) | S: Design for manufacturing and assembly without overly complex parts that can result in supplier lock-in; focus on components that allow for a variety of sourcing/supplier options (15) D: N/A | S Single-source exposure in low-volume custom parts (25) D: Capacity re-allocation delays; build buffers/second sources (23) | |
| Supplier relationship management | S: Supplier Follow up Benefits: embed cross-functional teams at supplier sites to clarify expectations, catch quality issues early and avoid costly late-stage (3); balance resources for on-site visits to boost quality and shorten lead times (3) D: Maintain robust partnerships through delivery, commissioning, verification, and training to sustain engagement (3). Bundle volume and adopt a long-term focus to drive mutual gains (2). Manage unexpected supplier issues (6) | S: Supplier Follow up Benefits (13; 16): embed cross-functional teams at supplier sites to clarify expectations and improve suppliers' visibility into how their parts are used – leading to higher motivation and efficiency gains (13); balance resources for on-site visits to boost quality and shorten lead times (16) D: Maintain robust partnerships for change (11, 16), Manage unexpected supplier issues (15) | S: Continuous monitoring of major suppliers and periodic checks on smaller ones (25) D: Maintain robust partnerships (25). Expecting suppliers to be transparent about their development maturity and any emerging issues, enabling early intervention and keep the development on track (26) | |
| External (customer integration) | Customer influence on sourcing | S: Procurement balances customer interests with best practices (1; 2; 8), allows client choice, and stays transparent on options (1), while considering strong historical supplier relationships (1) D: Weekly subsystem reviews; iterative joint trade-offs | S: Certain system suppliers were pre-defined (14) D: N/A | S: N/A D: N/A |
| Organisational learning | S: Success depends on optimising knowledge transfer with customers (3). Customer-mirroring organisations facilitate technology transfer and improve alignment and communication (3; 4; 5) D: Technical alignment via milestones, and formal checkpoints, ensures consistency in technical decision changes (8) | S: N/A D: Technical alignment via milestones, and formal checkpoints, ensures consistency in technical decision changes (17) | S: N/A D: Integrated project teams monthly with the customer that are involved in discussions on components and system security changes (23) | |
| Requirement-driven system adaptation | S: N/A D: Integrating customer choices into existing systems, so technical solutions evolve throughout the development process (5). Overall, it's essential to align and adapt to customer needs and shifting market conditions (3; 5; 8) | S: N/A D: Manage scope creep through structured processes to prevent delays, cost overruns, and contractual issues, balancing trade-offs between original requirements, timelines, and system capabilities (9) | S: N/A D: Manage changing customer requirements and evolving supply chain risks during market and bid phases (25) | |
| Lifecycle continuity | S: Establish a formal obsolescence data process, approaching suppliers with structured inquiries (1–8). D: Use an obsolescence plan and include lifecycle obligations in contracts. Align with customers on trade-offs to maintain continuity across long product lifecycles (7; 8) D: N/A | S: N/A D: N/A | S: N/A D: N/A | |
| SCI dimensions (aggregate dimensions) | Integration dimensions (2nd order themes) | Responses to structural: (S) and dynamic (D) complexity identified in the data (1st order concepts) | ||
|---|---|---|---|---|
| Alpha | Beta | Gamma | ||
| Internal integration | Procurement mediation roles | |||
| Cross-functional orientation | ||||
| Cost-conscious design | ||||
| Organisational routines | ||||
| Obsolescence management | ||||
| External (supplier integration) | Early supplier involvement | |||
| Supplier capabilities alignment | ||||
| Supplier lock-in | ||||
| Supplier relationship management | ||||
| External (customer integration) | Customer influence on sourcing | |||
| Organisational learning | ||||
| Requirement-driven system adaptation | ||||
| Lifecycle continuity | ||||
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