A coordination-based perspective on the procurement process in the supply chain

Traditionally, the supply chain members in an uncoordinated chain have been working independently and optimising their local objectives resulting in higher costs. Supply chain coordination can be utilised to improve the performance of various supply chain processes. In this paper, relevance of coordination in procurement process is highlighted. The coordination in procurement process can be achieved by utilising various coordination mechanisms. A coordinated procurement model is proposed to coordinate various activities of the procurement process vertically and horizontally. The model will be effective in improving the performance of the procurement process.