Buyer power procurement strategy : a case study of South African Breweries and Consol Glass

Jonker, Graeme (2007-12)

Thesis (MBA)--Stellenbosch University, 2007.

Thesis

ENGLISH ABSTRACT: This research report presents a framework for designing a procurement strategy using the concept of Power. Companies like Toyota have pioneered the use of the “lean thinking” concept of supply chain management to ensure that the entire supply chain co-operates to build a competitive advantage that saves money and provides a better product to the consumer. The basis of the “lean thinking” concept has been that buyers no longer treat suppliers as adversaries with the sole objective of leveraging the best price but engage with suppliers to develop long-term strategic relationships based on trust and collaboration. Power has always existed in business relationships. Power and the “lean thinking” concept appear to be unable to co-exist in the same supply chain relationships as one deals with trust and collaboration while the other deals with domination. This research reports shows that power and “lean thinking” can co-exist and that power has the potential to play a key role in understand the dynamics present in supply chain relationships both from the perspective of the buyer and the supplier. By mapping the power relationship between parties in the Supply Chain a company can understand the strategic options available to it to increase its impact on the supply chain and to use its position to leverage the best value possible both towards the other parties in the supply chain and to parties operating in competing supply chains. The power relationship between The South African Breweries Ltd and Consol Glass will be mapped to enable SAB to understand its available strategic options for the design of a 3 to 5 year procurement strategy. The strategies that crystallize from the power mapping process will be analysed with a view to selecting a single option that the SAB procurement function could adopt over the next 3 to 5 years.

AFRIKAANSE OPSOMMING: Hierdie navorsingsverslag bied 'n raamwerk vir die ontwerp van 'n verkrygingstrategie met behulp van die konsep van mag. Maatskappye soos Toyota het met die gebruik van die “soepel denke”-konsep met betrekking tot aanvoerkettingbestuur baanbrekerswerk gedoen om te verseker dat die algehele aanvoerketting saamwerk om 'n mededingende voordeel te skep wat geld spaar én 'n beter produk aan die verbruiker bied. Die grondslag van die “soepel denke”-konsep is dat kopers nie meer verskaffers as teenstanders beskou en ten alle koste bloot die beste prys wil bewerkstellig nie, maar dat kopers in der waarheid deesdae nouer by verskaffers betrokke raak om langtermyn- strategiese bande op grond van vertroue en samewerking te smee. Mag was nog altyd deel van sakeverhoudinge. Mag en die “soepel denke”-konsep kon tot op hede skynbaar nie naas mekaar in dieselfde aanvoerkettingverhouding bestaan nie – die een handel op stuk van sake oor vertroue en samewerking, en die ander oor oorheersing. Hierdie navorsingsverslag toon dat mag en “soepel denke” wél gelyktydig kan bestaan en dat mag 'n sleutelrol kan speel om die dinamiek in aanvoerkettingbestuursverhoudinge, uit die koper sowel as die verskaffer se oogpunt, te begryp. Deur die magsverhoudinge tussen verskillende partye in die aanvoerketting af te beeld, kan 'n maatskappy verstaan watter strategiese opsies beskikbaar is om sy impak op die aanvoerketting te vergroot en sy posisie te gebruik om vir die ander partye in die aanvoerketting, sowel as partye in mededingende aanvoerkettings, die beste moontlike waarde te bekom. Vervolgens sal die magsverhouding tussen Suid-Afrikaanse Brouerye (SAB) Bpk. en Consol Glass afgebeeld word sodat SAB sy beskikbare opsies vir die ontwerp van 'n drie- tot vyfjaarverkrygingstrategie kan verstaan. Die strategieë wat uit dié magafbeeldingsproses na vore kom sal ontleed word met die oog daarop om 'n enkele opsie te kies wat SAB oor die volgende drie tot vyf jaar kan aanvaar.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/80785
This item appears in the following collections: