Procurement Practices in Project Based Manufacturing Environments

¹ Faculty of Engineering and Science, University of Greenwich, UK
² Industrial and Manufacturing Engineering, NED University of Technology, Pakistan

^a Corresponding author: s.shah@gre.ac.uk

Abstract

Procurement is one of the processes that cannot be separated in a business. To be able to run a business, it certainly needs to go through procurement stage that involves purchasing raw materials and services. There are many procurement practices in different kinds of business environment such as manufacturing business and construction business. Competitive strategies application within procurement in this manufacturing is very important in order to win a tender for material procurement required in projects. The paper examines how competitive strategies are applied within procurement practice in project-based manufacturing environment. This research studies in the literature of management in engineering, competitive strategy, procurement integration, and case study that takes a sample from the examples of procurement practice application in large organisation such as that of McDermott. The research aims to conduct a qualitative research method based on the discussion and analysis of literature reviews and case study to build conclusions. The findings suggest business players should have core competencies and develop factors such as superior quality, price advantage, on-time delivery, flexibility, and innovation through technology in order to win the competition.