Developing a decision-making framework for implementing purchasing synergy: a case study

Purpose – The purpose of this paper is to report on research undertaken within a European-based airline services firm. As a result of pressures within the airline industry the firm embarked on a cost reduction programme, recognising the need to achieve more synergy from its procurement spend, located in semi-autonomous business units (BUs). The paper describes sequentially the two stages of the author's involvement in the project and the outputs and results realised. Design/methodology/approach – The aim was to design a practical tool, based on academic inputs, which could be used by the business to achieve purchasing synergy. The research is reported in a case study format and develops an original mixed method approach. This approach combines interviews, a focus group, cognitive mapping and portfolio analysis and leads to the production of a decision-making framework for implementing purchasing pooling.