This dissertation examines how suppliers are integrated into the current organizational set-up of the manufacturing firm to become an extended organisation, in face of the increasing competition in the marketplace as well as the increasing role of procurement as a strategic function to pursue quality goals. The procurement function is traditionally viewed as a buying agent for different departments in the manufacturing firm. However the procurement function has evolved to be a strategic function for the manufacturing firm as it helps to drive quality and cost of purchased material. This is all the more prevalent as more and more manufacturing firms are adopting total quality management (TQM) and just-in-time (JIT) systems to stay competitive. Master of Business Administration (Management of Technology)