Strategic Sourcing in Construction Companies- A Case Study in Qatar

Abstract

Sourcing is a key success for modern business, it is a continuous process based on business analysis and market intelligence to incorporate customer needs and organizational goals; thus, improving overall value of the business. If sourcing is done properly with a systematic and fact-based approach; then it will become "strategic sourcing"; presenting comprehensive and determined goals. An effective strategic sourcing can result into getting the best product or services at its best value and addresses all patterns for savings; and re-investing those savings in the company's operation. This study specifically represents core ideas related to strategic sourcing for construction companies in Qatar. It highlights issues relevant to companies that implement tactical procurement standards and enforce a successful strategic sourcing process. The results from this study can be generalized to any company in Qatar or in the Middle East. Data was collected from various procurement officers/managers in construction companies in the supply chain department. A semi-structured questionnaire was used to collect the required data, which helped better analyze and determine the issues that are vital for improving the partnership with suppliers, decrease cost, maintain or improve the required quality standards; leading to improving the overall operation of the business and supporting in achieving the long-term objectives of the organization. The results showed a positive relationship between strategic sourcing and outcome for the supply chain performance in addition to cost saving and improving relationship with key suppliers. The results of the study indicate that implementing strategic sourcing process will improve the performance of the sourcing team and reduce cost.