Procurement Strategies and their impact on SMEs : A study of how procurement strategies for SMEs can increase competitiveness

ABSTRACT In this case study, various strategic methods that influence procurement, purchase and choice of suppliers are discussed. The aim of the study is to provide a clear picture and depiction of different strategies and tools that SMEs can use to increase competitiveness. In this study, a qualitative research method has been used where no measurements or tests have been conducted. The analysis in this case study concludes that the choice of suppliers and procurement strategies for a small and medium enterprises (SME) is not always an easy task, a lot of components should be considered when making a strategy. Although many theories and methods often claim that the economic factors are important, this study shows that it may be good idea for companies and organizations to see the full picture and consider certain other factors into account. The conclusion also shows that small food business companies often is affected by certain criteria like delivery security and lead time. Many of the factor that are value adding to SMEs has been shown in this study to be determined by the customer. This study is suitable for readers who work with purchase strategies and supplier choices. The reader gets through reading this study insight into different strategy related contexts that are adapted to small and medium enterprises (SME). Further research on the subject can be applied with the help of this study using both the methodological and theoretical frameworks. The results and conclusions may also be of importance in further research