| Summary: | In order to protect the interest of the company make in this case study, the name of the company name is replaced by ABC.
Strategic procurement in this project is to study, investigate and recommend how ABC, a group of 5 manufacturing sites can make use of the current situation and market condition to develop strategy and supply framework that brings competitive advantage for company survival in today's business world. The strategic framework will focus on developing the process that not only reduces total cost of ownership in goods and services while also improve the levels of quality, service and technology to the ABC business
The objective is to look at the conditions and investigates the components needed to develop the procurement strategy in ABC or other similar manufacturing companies. After the development of the strategy, this thesis goes on further to elaborate on the planning that leads to performance management and tracking.
Currently, ABC procurement teams in 5 sites are running individually without sharing with one another on success story and laid the foundation in developing the key management question of "how can ABC adopt strategic procurement to provide leadership to support the strategic goals of the ABC business" and "there are still unexplored opportunities in developing best practice strategic procurement within ABC".
Literature review has been reviewed to analyze the formulation of strategy and what it takes to move forward for the whole strategy to develop, plan and track. The basic framework identified within the literature review process was the AT Kearney model. It looks at developing components of internal and market analysis to establish strategy meant for business goals and extended to competitive selection, supplier development and tracking. This project goes on to modify the framework to include essential elements such as performance management that are intergraded in ABC to take advantage of best practiced identified and to insert what is suitable for ABC and also serve as a consideration for other companies in strategic procurement.
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