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Principles Of Buying

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Length: 1647 words (4.7 double-spaced pages)
Rating: Orange      
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Principles of Buying

In the long-term, the success of any organization depends on its ability to create and maintain a customer. Do you agree? What does this have to do with purchasing and supply management?

Yes, I agree that the success of any organization depends on its ability to create and maintain a customer. No matter where the supply function is located on the organizational chart; each member of the supply organization has the opportunity to improve relations with internal customers and suppliers. By doing this there is a potential for a greater contribution to the organizational objectives. Buyers work with suppliers daily and create trusting relationships. These relationships can produce valuable contacts and deeper connections between the organization and supplier. Creating long-term contracts with suppliers allows the organization to increase productivity by reducing the number of contracting actions required. The purpose of supply chain management is to improve trust and collaboration among suppliers which creates improved inventory visibility and improved invento...


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... and that any concerns that are brought up can be dealt with in a timely fashion. By reviewing the budgets quarterly, Jim can ensure that the department is capable of the budget cuts he is expecting. Installing annual reviews that the employees participate in will ensure that everyone gets to voice their opinion and make Jim aware if they feel that they are not being over/under utilized. They can also help create their KPI’s for the upcoming year so that everyone knows what their goals/projects are and they are able to benchmark their progress.

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