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For example, the evolution of the purchasing and supply management from a transaction-based (clerical and mechanical) function to one that is strategic-based (proactive or world…
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Download file to see previous pages Another interesting development involves dealing with tactical purchasing activities that leverage information for organizations. Consequently, the interaction and collaboration of the aforementioned functions play a fundamental role in departments such as Marketing, Legal, Engineering and Quality and Manufacturing among others. This is through the implementation of varying functions that tackle retail business during transactions. Additionally, there are processes that are valuable to measurement systems that used in supply management agencies to facilitate functional organizational structures.
There are lots of differences between the principles and practices of Purchasing and Supply Management used in the Public sector and the Private Sector. For example, while in the former that majorly comprises of the government the rules are based on contract negation, the latter concentrates on procurement subcontract. Alternatively, while in government they focus on the legal aspects that characterize purchasing, in manufacturing and retail the fundamental features include acquisition and logistics management. Likewise, the salient points noted in the discussion include the need for value-added flow of resources that are later disbursed to resellers and final consumers. In the same capacity, a customer-focused approach is integral in improving efficiency to leverage on the elements of supply chain (Monczka et al 145). Therefore, the salient differences affect the establishment that influences buyer-supplier relationships through the aspects of distribution management, channel management, and payment management. On the other hand, issues of outsourcing and product development assume a huge precedent in maintaining the customer service flow. Likewise, in terms of implementation of the Purchasing and Supply Management function, concentration on external collaboration and ...Download file to see next pagesRead More
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