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ABSTRACT. This research focuses on a comparison of public and private sector supply organizations in terms of organizational structure, supply chain responsibilities, the chief purchasing officer (CPO) and reporting line, teaming and involvement in major organizational activities. A unique opportunity to identify similarities and differences was presented in 2000 when the National Institute of Governmental Purchasing Research (NIGP) and Florida Atlantic University replicated in the public sector a study that the Center for Advanced Purchasing Studies (CAPS) conducted in the private sector in 1995. Significant differences and similarities are identified and are discussed in this paper.
INTRODUCTION
The mission of the supply function, whether in the public or private sector, is to manage the delivery of goods and services through the supply chain in a cost effective manner. However, it is well recognized that there are a number of unique aspects in public sector procurement. For example, public procurement is characterized by high levels of public disclosure and a heavy reliance on the bid process compared to private sector organizations (Osborne & Pastrik, 1997). Notwithstanding these differences, there are also many commonalities between public and private sector groups. Benchmarking by the Center for Advanced Purchasing Studies (CAPS) found a common trend toward using automated purchasing systems to process transactions and track purchasing activities and an increased use of multi-year contracts (Center for Advanced Purchasing Studies, 1999).
One area of substantial research interest in the public and private sectors has been an examination of organizational issues in the supply area. The first large-scale North American research effort concerning private sector supply organizations was by Fearon (1988), who surveyed 297 large U.S. firms. Since that time, other work by Cavinato (1991), Pooley and Dunn (1994), Telgen, Zomer and de Boer (1997), Johnson, Leenders and Fearon (1998a), Johnson, Leenders, and Fearon (1998b), Harland, Gibbs and Sutton. (2000), and Leenders and Johnson (2000) have examined a range of organizational factors in private sector organizations. Fearon's original 1988 survey was replicated in 1995, providing the basis for a longitudinal examination of the trends and changes in large North American supply organizations (Fearon & Leenders, 1995).
Despite the interest in organizational issues in supply, absent from the literature is research that identifies organizational similarities and differences between public and private...