Increasing Operational Performance and Inventory Management by Purchasing Strategies of Construction Companies in Thailand
Keywords:
Operational Efficiency, Purchasing Strategy, Inventory ManagementAbstract
This research was conducted to examine 1) the levels of procurement strategy, inventory management, and operational efficiency of construction companies in Thailand, and 2) the direct and indirect influence of procurement strategy on inventory management and operational efficiency of construction companies in Thailand. The study was designed as quantitative research, and a questionnaire was employed as the research instrument. Data were collected from a sample of 200 construction companies in Thailand. Structural equation modeling (SEM) was used to analyze the data.
The findings revealed that 1) all aspects were rated at a high level, with operational efficiency being rated the highest, followed by procurement strategy and inventory management, respectively. 2) The procurement strategy was found to have a positive influence on both operational efficiency and inventory management. Additionally, inventory management was found to positively influence operational efficiency. The procurement strategy also indirectly influenced operational efficiency through its impact on inventory management. As for recommendations, there should be objectives and goals of purchasing or clear operating procedures. A manual should be prepared. The rules and regulations should be the same guidelines. Teamwork should be promoted to reduce the steps in working, making work more efficient, successful and delivered on time.
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