Purchasing management and the “known or unknown” suppliers’ selection process: CIRC Energy case study

Abstract:

This paper deals with the purchasing function and the suppliers’ selection in the management process. It highlights the problem of the sourcing and the determinants of this selection in the case of the entity CIRC Energy. This entity is part of the Alpha Group, a company that "designs, installs, modernizes and maintains equipment for the energy, defense, steel and industry in general." This document is based on 11 semi-structured interviews, participative observation for a period of six months, a paper board and a review of internal company documents. The objective of this work is twofold: - firstly, determining the roles of the procurement function in the industrial sector, especially the CIRC Energy case; - Secondly, to identify the determinants of the suppliers’ selection “Known or unknown” of the case study. The results indicate the added value importance on the purchasing function within CIRC Energy. Moreover, according to the supplier is known or not, the qualification process and the determinants selection are different.