An evaluation of the procurement strategies of Zimbabwe 's food manufacturing industry: The case of Cairns Foods Ltd (2000-2010)

Abstract

Cairns Foods (CF) Limited is a food and beverage manufacturer beset by raw material shortages, cash flow and foreign currency problems which pose as legitimate accomplices behind the company’s diminished capacity utilisation. The author, a raw material buyer with the food manufacture, evaluates the raw material procurement strategies of Zimbabwe’s food manufacturing industry using the case of Cairns Foods Limited from 2000-2010.

The author evaluates varied, published views and also uses questionnaires and interviews to gather information. The research methodology adopted both qualitative and quantitative research method. A sample size of 40 employees was randomly selected from Cairns Foods and graphs and tables were used to present the research findings. Analysis and discussion was done using literature review.

While it is clear that the absence of a reliable raw material sourcing strategy will accelerate the present decline, the research established that spot market is the main procurement strategy that is being used by Cairns foods while futures and forward buying are also being used as procurement strategies to a lesser extent. The research also concludes that the factors that are compromising the usefulness of the procurement strategies at Cairns Foods Ltd are; procurement strategies not being implemented, procurement strategies not addressing all the relevant issues and lack of clear guidance in some procurement strategies.

In conclusion, the study recommends that for the food manufacturing industry to enhance their raw material supply in the wake of shortages companies should adopt e-procurement, contract farming and backward vertical integration. The successful implementation of these prepositions should be guided by optimal funding options and skills strategies to achieve the desired end. Consignment stocking and alignment with the key authorities as a means to access funding and mitigate potential risks is also suggested. Implementation of the highlighted strategies will thus bring to fruition the survival and growth so envisaged by the author. An area of further study is recommended to investigate the impact of good procurement strategy to the growth of an organisation.