A Critique of Centralised Procurement Practices within SCM.
(2017) A Critique of Centralised Procurement Practices within SCM., no. 103.
The research study provides a critical analysis and critique of centralized procurement practices within Logistics and Supply Chain Management (LSCM). The significance of LSCM and in particular procurement has only recently been recognized as a critical source of building organizational capability and value. Within the current body of literature, there is a lack of argument that identifies the prominence of the procurement function within organisations, and its ability to drive value and competitive advantage. This research identifies procurement as a source of competitive advantage that must be embraced and translated into competences by contemporary organisations. Competitive priorities within procurement should include supplier relationship management (SRM), collaboration and innovation; with the depth of integration being key to the development of value. The literature lacks both depth and focus when discussing procurements' criticality in supplying these drivers; therefore it is clear this area will benefit from the subsequent research. The research was conducted in the form of a qualitative study to allow for the exploration of perspectives and opinions which exhumed recurring critical themes relating to the criticality of procurement. The objectives were satisfied through the collection of the primary data which involved 5 semi-structured interviews with professionals whom held an occupation within and / or relating to Supply Chain Management, and in particular procurement. After the data analysis, coding and reduction of primary data resulted in the identification of four critical themes, outlined in Section 4.0, which complimented the research questions. The research has since found that procurement is an integral function within contemporary organisations, contrary to the lack of literature on this position. Perspectives from the participants identified clear advantages of procurement adhering with the current body of literature. However, the study also highlighted that there is a growing interest in procurement and the value it creates, that goes beyond traditional economic benefits into collaborative innovation and problem solving.