Challenges on Strategic Sourcing as an Expenditure on Procurement

¹Lord Emmanuel Yamoah | ²Isaac Kofi Yornu

Abstract

Strategic sourcing is an activity which every organization performs irrespective of it being a private public organization. Every organization one way or other needs somebody to supply them their material to enable them carry on with their activities. However, the question before us is not whether the organization should undertake strategic sourcing or not but rather what method should be used during strategic sourcing within a given situation, who should be involved in the sourcing process and what procedure to follow during sourcing in order to achieve cost effectiveness and not cost efficiency. An assumption to why this happening indicates the following; Untrained and unskilled purchasing professionals are always involved in the strategic sourcing process. Inability of purchasing professionals to identify suppliers from where ever they are located within the globe and rely solely on the local suppliers without even considering the technicalities involve in the supply of the materials. The procurement professionals do not consider the threshold involve in the supply when awarding contracts. The purchasing professionals do not plan for their purchases at the beginning of the year making all their purchases to be of urgent with limited time to source. It is in the light of these problems that the researcher wants to evaluate the impact of effective sourcing on organizations with particular reference to Goldfields Ghana Limited, Tarkwa.

Keywords: Strategic Sourcing Challenges, Procurement Sourcing  Challenges, International Sourcing  Challenges

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