Abstract:
This study examines the effect of strategic sourcing on value creation in the production sector, with
a focus on Ghacem, a leading cement manufacturing company in Ghana. The primary objective is
to assess how strategic sourcing practices, including supplier selection, long-term partnerships,
and cost management, contribute to enhancing value in Ghacem’s production processes. The
research adopts a quantitative approach, utilizing descriptive analysis to explore data gathered
through structured questionnaires distributed to procurement and production staff at Ghacem. A
sample size of 50 respondents, selected based on their involvement in sourcing and production
activities, forms the basis of the analysis. Key variables assessed include the impact of supplier
collaboration on cost efficiency, the influence of strategic sourcing on product quality, and the role
of sourcing strategies in mitigating supply chain risks. Findings indicate a strong positive
relationship between strategic sourcing and value creation, as respondents reported improvements
in product quality, cost savings, and supply chain reliability. Moreover, long-term supplier
relationships were found to play a critical role in reducing procurement costs and enhancing
operational flexibility. The study concludes that strategic sourcing is essential for creating value in
the production sector, recommending that Ghacem continue to strengthen its sourcing strategies
by leveraging technology and developing closer ties with key suppliers. These measures are
expected to drive further improvements in efficiency and competitiveness in the cement production
industry
