Purchasing strategy and collaboration with suppliers : (case study: JSC Lebedyansky in Russia)

Abstract

The significance of purchasing makes it relevant for manufacturing firms to understand which purchasing approaches are effective and efficient, and thus contribute to their overall market success and profitability by cutting hidden costs. Accordingly the importance of the establishment and maintaining of valuable relationships and collaboration with suppliers inevitably increases. The success of the company on the market depends greatly on these factors. The research aims to study how the factors of purchasing strategy and collaboration with suppliers influence the performance of the company and its market position. The case study of largest juice manufacturer in Russia JSC Lebedyansky and its management of relationships with suppliers is conducted. The main aim of the research is to identify and describe the factors of purchasing strategy of the manufacturing company and collaboration between the manufacturer and its suppliers, and to describe how the influence of these factors on the possibilities and threats of the surrounding context of the company can be analyzed. The estimation of purchasing strategy and collaboration with suppliers is made in accordance to the most important factors of collaboration and purchasing strategy that were determined during the literature review. The data gathered through the interview with the employees of the company showed the weak and strong sides of the purchasing strategy of JSC Lebedyansky and its work with the suppliers. The SWOT-analysis was used in order to show the influence of the main characteristics of the collaborative relationships on the opportunities and risks of the company on the market.