STRATEGIC SOURCING AND IT'S EFFECT ON VALUE CREATION IN THE PRODUCTION SECTOR, A CASE STUDY OF GHACEM

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