Procurement: Competition and responsibility in an industrial community

Over the 50 years that Alcan has been present in Kitimat, globalization has changed the economic and social environment in which the smelter and the larger organization operate. These changes have produced pressure points that affect different functional and organizational levels. This paper examines these changes through the challenge of developing procurement policies and practices that maximize value while maintaining stakeholder relations. Kitimat is an interesting site in which to analyze these challenges because Alcan is the most significant economic unit in this relatively remote community. Abrupt shifts from a policy of giving preference to local suppliers to a strict policy of cost reduction could jeopardize community relations; however, to continue to support suppliers who are unable to compete globally is also counterproductive. This paper analyzes these issues and recommends policies and practices that support a balanced approach to improve relationships and reduce tensions that could arise from competitive pressures.