Strategic Procurement in Textile and Apparel Sourcing Companies in Hong Kong: A Practitioner’s Perspective

Simon S. M. Yuen, Calvin Cheng 
(School of Professional Education and Executive Development, The Hong Kong Polytechnic University, Hong Kong, China)

Abstract: This research study would critically identify elements of strategic procurement and their association with the company performance. The textile and apparel sourcing companies in Hong Kong were chosen as the context of the research study since these companies are facing the challenges of turbulent market and intensive competition. Qualitative research method was used and several interviews with industrial practitioners were conducted. The research result identified that top management commitment to the strategic procurement, long-term orientation with suppliers, information sharing with suppliers, supplier capability auditing, development of key supplier and supply base optimization are the most critical elements of strategic procurement and can affect the company performance of the textile and apparel sourcing companies in Hong Kong. The study is sound and can help practitioners develop corporate procurement and sourcing strategy and achieve competitive advantage for their companies.

Key words: strategic procurement; textile and apparel sourcing companies; company performance

JEL codes: L10, L67