Practical Procurement Skill, Theory and Techniques

Abstract

Over the past four decades, purchasing and supply management has evolved from a clerical function in the 1960s, through being an operational activity in the 1980s to the strategic nature in the 1990s (Gelderman and Van Wells, 2005; Spekman et al, 1994; Kraljic 1993). While several organizations have transformed their purchasing and supply capabilities into competitive advantage, other are still lagging behind. Today, proactive firms are expected to control their purchasing operations ion an effort to build competitive advantage (Carr and Smeltzer, 1997). In spite of the fact that purchasing has gained recognition amongst companies in the developed countries; the reverse is the case however in the developing countries (Msimangira, 2003). Specifically, African scholars have focused more on investigating according to Van Weel (2000) procurement refers to all the activities in a firm that involves getting a product or

Purchasing and supply –also known in procurement-may appear to be a ‘hidden’ function in many organizations. In fact, procurement is a highly strategic role, whether the organization is manufacturing or service-oriented, in the public of private sector, for profit or not. Procurement is complex. It covers the full supply chain from contracts (negotiating), procurement (purchasing) and logistics (storage/distributions). Procurement will lose its value when it is not proactive and the driver does not have what it takes to make more effective and lively in terms of skills and techniques.