National procurement and cost reduction in manufacturing firms:
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Date
2011-10
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study covered the literature about international procurement and cost reduction n
manufacturing firms, and reflected the forms used in international procurement, the tools
used, why organizations engage in international procurement, how costs can be reduced
and relationship between international procurement and cost reduction.
International procurement refers to a commercial transaction between a buyer and a seller
located in different countries, this highlights that procuring internationally is becoming
more of a strategic motive that should be hired by organizations with a global view of
staying in business.
The study investigates forms used in international procurement and these include
purchasing, tenancy agreements, hire purchase, counter trade, franchising among others.
Furthermore it also investigates the tools used which also include sourcing, auctioning,
ordering, market place among others.
The study highlighted several factors that force organizations to engage in international
procurement, these include need to acquire low priced goods, need to access worldwide
technology, need to acquire high quality of goods and services and the need to enjoy
better services.
Furthermore the study also highlighted ways of reducing costs in organizations like
supplier relationship, cost reduction, cost managements, target costing and value
engineering and capacity utilization.
Description
Research proposal submitted to the school of business and management in fulfillment of the requirement for the award of Degree in procurement and supplies at Kampala International University
Keywords
National procurement, Cost reduction, Manufacturing firms