Purchasing function of three major oil companies in the United States

Abstract

Scope of Study: The role of purchasing in the oil companies has been undergoing significant changes since the oil embargo in the 1970's. Three oil firms with headquarters relatively close together were selected to determine how they compare to each other in regard to the purchasing function and its influence in the organization. The responses to a mailed questionnaire and personal interviews were utilized to make this descriptive comparison. Some of the information gathered was not directly related to the objectives of the study, but it does provide further insight into each firm's policies and procedures.

Findings and Conclusions: There was some variation in the role of purchasing among the firms surveyed. This could very well be a result of the past staffing practices and range of control exercised by the purchasing function. Also, the technical and educational attributes of the staff have probably had an influence in the purchase of personal computers, chemicals, and other commodities/services in each firm. Further studies are needed to determine the significance of these factors in influencing the role of purchasing.