Term: Spring term 2007

Study objects: Reitan Servicehandel AB, Vi-butikerna, ICA Sverige AB

Purpose: The purpose of this study is to analyse how procurement is used as a strategy to achieve better competitive strength, within the retail food industry.

Theoretical: The theoretical chapter illustrates different procurement organisations, multiple and single sourcing, brand equity, consumer behaviour and involvement, Efficient Consumer Response including supply chain and category management and finally Demand Chain Management.

Method: For the case studies, three food retail companies have been interviewed: Reitan Servicehandel AB, Vi-butikerna and ICA AB. To illustrate how consumer behaviour influences retail food market, several secondary consumer research studies have been analysed.

Conclusions: The results indicate that the procurement organisation can achieve a better competitive strength by a centralised organisation, which make it possible to improve conditions of terms when ordering higher purchase volumes. The sourcing strategies can improve a company’s power within the supply chain. All companies within the study had a very good knowledge about consumer behaviour. Information technology is a very important tool to achieve enhanced efficiency within the organisation. It also indicates that the procurement organisation by its knowledge in sales and marketing can improve a company’s competitive strength.