Leverage Effect of Supplier Management on Sustainable Procurement in Emerging Markets
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LEVERAGE EFFECT OF SUPPLIER MANAGEMENT ON SUSTAINABLE
PROCUREMENT IN EMERGING MARKETS
Straube, F., Özgen, A., Ouyeder, O.
Prof. Dr.-Ing. Frank Straube, Head of Logistics Department, Assistant Prof. Dr.-Ing.
Arzum Özgen, Post Doctoral Fellow and Research Associate, Dipl.-Ing. Ouelid Ouyeder,
Research Associate, Logistics Department, Berlin University of Technology
ABSTRACT
Purpose:
Industrial companies that are sourcing in emerging markets realize great opportunities
and competitive advantages and benefit from the specific competencies of local firms for
their procurement activities. However, procurement companies face challenges and risks
in emerging markets. This research paper analyses how Top Performer companies
achieve success in their target emerging markets and accomplish an excellent
performance through strategic decisions and measures related to innovative supplier
management, successful sourcing as well as the implementation of sustainable
procurement.
1. Introduction
Since several decades, emerging markets increase their importance regarding the
procurement and supply of more complicated products as well as simpler parts and
components. This has necessitated a much more developed and extended supply chain
network to fulfill the production and manufacturing needs of developed countries.
International procurement companies should improve and integrate their supplier
management processes in emerging markets with their entire production and supply
structures in order to protect their global competencies. Enormous push from global
markets enforces procurement companies to set up and develop long term relations with
their suppliers in emerging markets. Supplier selection as the first step has a long lasting
effect on supplier management performance in emerging markets. In second stage
procurement companies should integrate their suppliers with their global supply chains
by focusing on supplier management and development activities.
Sustainable procurement as a new topic encompassing economic, environmental and
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