Procurement management in a TQC environment

Goldsztein SA is a Brazilian construction company that began to reengineer their procurement management in 1996 by implementing a Total Quality Control (TQC) managerial system. Traditionally, procurement is price-driven and done one project at a time. TQC, however, seeks to create supplier relationships that are long-term and focused on quality and service with an emphasis on finished-items rather than components. Suppliers were classified into three tiers according to their managerial and technical ability; it was found that 27 percent of procured items represented 73 percent of the most important ones. One example of the improved procurement process was a partnership with Siemens to provide electrical and telecommunications solutions for all Goldsztein building projects.
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