Leverage Effect of Supplier Management on Sustainable Procurement in Emerging Markets
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LEVERAGE EFFECT OF SUPPLIER MANAGEMENT ON SUSTAINABLEPROCUREMENT IN EMERGING MARKETSStraube, 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 TechnologyABSTRACTPurpose:Industrial companies that are sourcing in emerging markets realize great opportunitiesand competitive advantages and benefit from the specific competencies of local firms fortheir procurement activities. However, procurement companies face challenges and risksin emerging markets. This research paper analyses how Top Performer companiesachieve success in their target emerging markets and accomplish an excellentperformance through strategic decisions and measures related to innovative suppliermanagement, successful sourcing as well as the implementation of sustainable
procurement.1. IntroductionSince several decades, emerging markets increase their importance regarding theprocurement and supply of more complicated products as well as simpler parts andcomponents. This has necessitated a much more developed and extended supply chainnetwork to fulfill the production and manufacturing needs of developed countries.International procurement companies should improve and integrate their suppliermanagement processes in emerging markets with their entire production and supplystructures in order to protect their global competencies. Enormous push from globalmarkets enforces procurement companies to set up and develop long term relations withtheir suppliers in emerging markets. Supplier selection as the first step has a long lastingeffect on supplier management performance in emerging markets. In second stageprocurement companies should integrate their suppliers with their global supply chainsby focusing on supplier management and development activities.Sustainable procurement as a new topic encompassing economic, environmental and