Eskom Procurement Book 2015

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. 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. 4.9 REFERENCES [1]

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