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CHAPTER 4
PROCUREMENT AS A SUPPORT AND STRATEGIC FUNCTION WITHIN COMPANIES
While not exhaustive, the above best practice examples provide insight into
how modern procurement groups within forward-thinking firms are organised
and carry out their functions.
4.8 CONCLUDING REMARKS
The concepts outlined in this chapter illustrated the role of procurement in
formulating strategies at the overall firm level as well as at the sourcing of
items and services levels. Procurement should contribute to the development of
corporate strategy as an active partner and participant. Procurement also needs
to organise its strategy for and efforts around the procurement of goods and
services based on the relative strategic importance of those goods and services.
The chapter illustrated that procurement has a vital support function to fulfil
for other functions/groups within the organisation, including engineering,
manufacturing/operations, quality, finance and other key groups and plays an
active role in supporting these functions/groups. It also showed some current
and evolving strategies in the procurement field. Procurement will no doubt
continue to evolve as a strategic support function over time.
4.9 REFERENCES
[1]
Trent R.J., Strategic supply management: Creating the next source of
competitive advantage, Fort Lauderdale, J. Ross Publishing, 2007.
[2]
Monczka D., Trent R.J. and Handfield R., Purchasing and commodity
strategy development, In: Purchasing and supply chain management, 3
rd
ed., Mason, South Western Publishers, 2005, Chapter 6, pp. 169-183.
[3]
Monczka D., Trent R.J. and Handfield R., Supplier management and
development: Creating a world-class supply base, In: Purchasing and
supply chain management, 3
rd
ed., Mason, South Western Publishers,
2005, Chapter 9, pp. 275-282.
[4]
Fottrell Q. and Scheck J., Dell moving Irish operations to Poland, The
Wall Street Journal, 9 January 2009, B4.
[5]
Trent R.J. and Roberts L., The changing global landscape, In: Managing
global supply and risk, Fort Lauderdale, J. Ross Publishing, 2010,
Chapter 1, pp. 12-15.
[6]
Trent R.J. and Roberts L., Total cost of ownership, In: Managing global
supply and risk, Fort Lauderdale, J. Ross Publishing, 2010, Chapter 4,
pp. 64-65.