PURCHASING STRATEGY FOR REFURBISHED GAS CHROMATOGRAPHY INSTRUMENTS

Abstract

The aim of this study is to develop purchasing strategy for procurement of used Gas Chromatography (GC) instrument for refurbishing in order to enhance company’s competitive advantages. The purchasing strategy study is developed by 5 steps, which are (1) analysis of spending data, (2) determining customer requirements, (3) assessing supply market, (4) formulating purchasing strategy, and (5) executing and refining strategy. The purchasing strategy consists of (1) vision, (2) mission, (3) objectives, (4) action plans, and (5) key performance indicators. Implementation on the case study company was done by applying Leagile purchasing portfolio model and assemble-to-order systems, as well as established guidance for selecting qualified suppliers and sourcing. Moreover, the inventory is controlled by stock cards. The results of this paper show that the case study company is able to (1) reduce cost for refurbished GC instrument approximately by 10.35%, (2) set a standard purchasing process, and (3) qualify 3 main suppliers. This study provides guidelines for similar purchasing for other purchases in the future.