STRATEGIC APPROACH TO PURCHASING PROCESS IN THE EUROPEAN MANUFACTURER OF ELECTRONIC PRODUCTS

Purpose: The aim of the article it to reveal strategic behaviours of the European manufacturer of electronic products undertaken in the face of world-wide price practices driven by semiconductor business which bring down the competitiveness of European manufacturers of electronic products. Methodology: Case study conducted in the European manufacturer of electronic products based on in-depth interview with purchasing manager having the experience in electronic industry. Findings: Excellence in strategic supply management is crucial to compete in electronic industry under the strong pressure of Far East competitors. On the one hand tough and coordinated work of procurement, R&D and quality departments is necessary. It is critical to understand how semiconductor business drives the price policy and set up against the adequate procurement policy. On the other hand being close to the market with the ability of fast customer’s requirements fulfilment with flexible and highly automated production gives the real chance to compete with Far East competitors. Implications: To encourage European manufacturers of electronic products to revise procurement policy and to investigate if semiconductor companies’ price practices impair their competitiveness.