| dc.description.abstract | The prime objective of this study was to provide guidelines for the
implementation of vendor strategies at Sasol Polymers. A secondary objective was
to improve the efficiencies of procurement. In the past, procurement was seen as
an operational function responsible for buying goods and services to support
business needs. Global competition and the striving towards becoming world class
made companies more aware of the value that procurement could add to the
business on a strategic level.
The common objective of any organisation is to maximise profits. A strategic
procurement approach, based on total cost of ownership principles, plays an
important role, as input costs are no longer evaluated based on price in isolation.
The importance of supplier relationships has also become inevitable. Successful
businesses will therefore, tend to align procurement strategies with their business
strategies.
The study was based on Sasol Polymers, a division of Sasol responsible for the
manufacturing of various plastic products aimed at the local and foreign markets.
The literature study was based on procurement strategies and the effect that global
competition and best practices have on internal procurement efficiencies. An
empirical research, based on Sasol Polymers supply relationships, was performed
to understand the current situation and the role that supplier relations could play in
the improvement of procurement efficiencies.
The Kraljic relationship model was researched and it is the author's opinion that
the model is still very relevant, although many companies fail to realise the
potential of this model. It is finally concluded that Sasol Polymers' procurement
processes compare favourably with world class procurement practices. The Kraljic
relationship model is utilised with success in creating commodity strategies,
however, procurement still has a need for vendor strategies. | |
