Strategic Procurement in Textile and Apparel Sourcing Companies in Hong Kong: A Practitioner’s Perspective

Simon S.M. Yuen, Calvin Cheng

Abstract


The role of procurement has been undergone a tremendous changing over the last few decades. Procurement has been evolved from being an ‘arm-length’ service to the integrated strategically important part of a global supply chain. This research study would critically identify elements of strategic procurement and their association with the company performance.The textile and apparel sourcing companies in Hong Kong were chosen as the context of the research study since these companies are facing the challenges of turbulent market and intensive competition. In the apparel market, consumers nowadays demand products with the competitive price, superior quality and the fastest turnaround time. In order to sustain their competitive advantage, companies have to be customer oriented and be able to make prompt responses to changing consumer preferences. Strategic procurement has become a key driver of competitiveness in textile and apparel industry.Qualitative research method was used and several interviews with industrial practitioners were conducted to delineate the critical elements of strategic procurement and their effects on company performance. The research result identified that top management commitment to the strategic procurement, long-term orientation with suppliers, information sharing with suppliers, supplier capability auditing, development of key supplier and supply base optimization are the critical elements of strategic procurement and can affect the company performance of the textile and apparel sourcing companies in Hong Kong. The study is sound for practitioners to develop corporate procurement and sourcing strategy and strive for competitive advantage for their companies.Empirical research, i.e. survey with a larger sample size, can be conducted in future so that the result obtained can be generalized to all companies in the industry.Keywords: Strategic Procurement, Textile and Apparel Company, Hong Kong

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