Changing Role and Relevance of Purchasing: Impact on Organizational Effectiveness

Abstract

Analyses changes taking place within purchasing and its environment. Interpreting such trends wisely will be necessary to achieve an optimal relationship between purchasing and other organizational units. Addresses how changes in purchasing affect profit generation, securing of new and better suppliers, achieving higher “real value” in products bought, dealing with new and emerging forms of sales pressure (including related supplier strategies and tactics), improving price hike rationale assessment, and determining effective purchasing strategy relative to prevailing economic conditions‐all of which are leading to a broadened role and relevance of purchasing today. Discusses current, significant purchasing trends, how they will influence future decision making, and the need for purchasing to help establish and maintain strong cross‐functional ties with all relevant parties. Directs analysis and discussion towards all individuals and groups affecting or being affected by the purchasing function domestically and abroad.

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