Mrs. Lobna Hafez
Investigating the purchasing process and supplier development practices in manufacturing companies: Multiple case studies on food processing sector in Alexandria, Egypt
The rapidly developing business environment and the urging need to be more competitive are forcing companies to manage their supply chain activities strategically. Manufacturing companies are less dependent on vertical integration and leaning more towards dealing with suppliers in order to be able to focus on their core competencies. As a result purchasing is considered one of the most important activities carried out within a supply chain. Purchasing occupies a great portion of manufacturing companies' operations and plays an important part in determining the product's quality and cost. The increased dependency on suppliers has raised up the need to dealing with those suppliers as partners and working on developing the capabilities and performance of suppliers. The previous literature has indicated a positive relationship between supplier development purchasing performance and business performance as a whole. This thesis is exploring the purchasing process and supplier development programs in food processing sector in Alexandria, Egypt. This was done through conducting interviews with purchasing managers and executives in the companies under study following three different types of ownership i.e., public, private and multinational with the aim of highlighting the similarities and differences in the process and development practices. The analysis of the interviews showed that companies operating in the private and public food processing sector are not applying supplier development practices . companies should be aware that the application of these practices will improve their purchasing performance.