To Examine Effective Procurement Strategies in Process Fabrication Manufacturing

Often purchasing is viewed as clerical task issuing purchase orders with little involvement in proactively implementing strategic plans within organisations. Hence, many significant effects to use purchasing as a strategic tool for the organisation are just overlooked. This research will present the characteristics of transactional purchasing and strategic procurement, also the difference between them. The significance and contribution of strategic procurement towards business performance is discovered. By conducting a case study in a manufacturing company, this report will demonstrate how purchasing can transform from tactical to strategic orientation by employing Kraljic Purchasing Portfolio Model (KM). The usefulness and benefits of the purchasing portfolio model is discussed and highlighted. The results implicate useful findings to motivate company wishing to find solutions to carry out transformation on their purchasing department should take serious consideration about adopting the purchasing portfolio model. Recommendations made to switch the products/services from one category to better position in the portfolio matrix.