The strategy of international procurement office of instant imaging company

Pao Yue-kong Library Electronic Theses Database

The strategy of international procurement office of instant imaging company


Author: Chu, Cheuk-kwan
Title: The strategy of international procurement office of instant imaging company
Degree: M.B.A.
Year: 1996
Subject: Polaroid Corporation
Photographic industry -- Purchasing
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Management
Pages: viii, 77 leaves ; 30 cm
Language: English
InnoPac Record:
Abstract: Traditionally, the procurement office of Polaroid in Hong Kong (PIPO) seldom plans its long-term purchasing strategies and tend to remain as a listening post-to receive orders and then get the job done well only. However, because of the organizational change in Polaroid Corporation from functional type to business unit operation, the urge demand of material cost reduction in hardware products to match with corporate, marketing and manufacturing strategies, and the diminishing competitive advantages in Hong Kong, PIPO is forced to reevaluate its current operation and to plan its future directions. Unlike other IPOs in Hong Kong, PIPO is not housing in the manufacturing subsidiary, so that it cannot share the resources from its housing subsidiary, but on the other hand it requires to maintain independent warehouse and to invest in quality inspection equipment. Consequently controlling the expenses become more critical than that of other IPOs in Hong Kong. In addition, the scope of sourcing responsibility of PIPO is too large to serve for the whole Asia Pacific region, but other IPOs in Hong Kong mainly focus on the Greater China region. Like many other IPOs in Hong Kong, PIPO lacks centralized materials cost system to coordinate the sourcing activities among various business units, and also lacks performance and reward system to motivate their staff. The results show that many IPOs stress on the long-term relationship with suppliers and tend to be highly involved in assembly manufacturing. Other IPOs always educate suppliers to understand the buyer's expectations in terms of delivery service, quality standard and price, and they also emphase on outgoing audit and manufacturing process control rather than incoming inspection. In order to enhance the competitiveness of PIPO, it is recommended that PIPO should strengthen its capabilities in the following areas : 1. to implement the cost reduction program e.g. warehousing outsourcing consignment inventory and vendor certification; 2. to reengineering its operation by making use of information technology; 3. to review its performance and reward system; 4. to focus its sourcing effort in Grater China region; 5. to cooperate the production plant in Shanghai, China; 6. to prepare itself in OEM manufacturing industry; 7. To implement the purchasing partnership; 8. to enhance the information system; 9. to establish the coordination mechanism; 10. to get the top management support.

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