The role of procurement in the development of core competence for company to sustain competitiveness

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The role of procurement in the development of core competence for company to sustain competitiveness


Author: Hong, Pui-i
Title: The role of procurement in the development of core competence for company to sustain competitiveness
Degree: M.Sc.
Year: 2004
Subject: Hong Kong Polytechnic University -- Dissertations
Industrial procurement
Core competencies
Department: Graduate School of Business
Pages: 120 leaves : ill. ; 30 cm
Language: English
InnoPac Record:
Abstract: Due to globalization, the world has become smaller and smaller. Market closure seems impossible to many firms. Competition is not solely based on price and has become much complicated than before in the past few decades. How to increase the productivity in order to add value to customer is the main focus of discussion. Supply chain management tends to be one of the keys to the destination, as more and more people believed that in the future, competition is based on how to effectively manage the supply chain in order to drive value to the customer. Firms will success only when they are competence in managing and enhancing the total performance of the supply chain. One of the discussions on how to prevail in global competition is by developing one's core competence. In the development of such core competence, the role of procurement is inevitable. In fact, many companies and studies had aroused the interest in changing the role of procurement from a traditional, functional role to a strategic player that contributes to the competitive advantage of the firm. This symbolized the importance of procurement as a key holder of success, which manages across the inter-organizational supply chain, as well as the external supply chain with suppliers. This paper, by presenting the experience of a semiconductor firm in Hong Kong, which gradually transiting the role of procurement from a clerical function to a strategic player in order to develop and safeguard its core competence. From the experience, it can be conclude that the traditional role of procurement is not enough in managing today's complex and complicated business world. Whilst the progress of changing the status of procurement is being achieved in the company, the transition is slow or non exist in many companies.

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