Value Creation for Global Procurement Competitiveness
No Thumbnail Available
Authors
Walter Wallace
Craig Hill
Issue Date
Type
Journal Article, Academic Journal
Language
Keywords
Alternative Title
Abstract
With the purpose of improving the efficiency and effectiveness of their production systems world class producers are focusing more and more on their procurement processes. This paper gives an overview of current industry status in the procurement area, as well as gives a prescription for successful procurement activities. Five options are given that present methods that adds value, going beyond just cost reduction, to the procurement process. These five options are strategic in nature and are focused on elevating managerial thought towards the procurement function. Not all solutions to the sourcing decisions can be found domestically. Today’s global business environment requires that companies become global when sourcing for their companies. This global perspective is highlighted in part through an explanation and example of Chinese business culture called guanxi.