An Evaluation Of Food Commodity Procurement Strategies: Insights From Case Studies

This research focuses on evaluating the main characteristics that are considered in commodity procurement decisions used by food manufacturers. The research contributes to the literature by filling a gap in both the commodity and procurement literature. There is a large literature on commodity selling, but very little on commodity procurement. Further, much of the literature on procurement focuses on non-commodity products, not commodity products. A case study approach was used to determine the factors that affect commodity procurement decisions and to examine the strategic nature of commodity procurement departments. Further, the research developed a model of commodity procurement decision making. First, a commodity procurement department must maintain supply. Once this is accomplished, a commodity procurement department can progress to a profit-focused strategy. Finally, the commodity procurement department can expand by offering additional services to customers, such as designing promotional programs.