Purchasing strategies

There is a difference of opinion as to whether a chemical buyer or purchasing-research analyst should be product or division oriented. Those who favor product orientation cl aim they achieve a broader and deeper understanding of the outlook for the chemicals they buy and this leads to sound purchasing strategy. Proponents of the division orientation cl aim that the product-oriented analyst has too many chemicals to foUow (up to 100 specific chemicals in some companies with 10 to 15 as principal purchases). If, instead, division needs are paramount in the mind of the analyst, more profitable buys can be made. The weakness of this latter argument is that in multidivisional, multibillion doUar chemical companies, this division-oriented analyst may have as many chemicals to foUow as a product-oriented counterpart. 

Hamner, B., 2006. Effects of green purchasing strategies on supplier behaviom. In Sarkis, J. (Ed.), Greening the supply chain. Springer-Verlag London Limited, Germany. 

Lean manufacturing covers tools such as just-in-time (]TT), small inventory, zero defects, flexible production, small batches, and close technical cooperation with suppliers. Some of its advantages, such as reduction of defects and engineering changes, can facilitate implementation of a global purchasing strategy. 

Integrative - full integration of purchasing strategy with other functions... 

Much attention will usually inevitably devolve onto the provision of gloves, barrier creams, skin cleansers and after-work creams. Interest should be expressed during the visit in the methods of selection of such products and their resulting suitability for the job(s) in question. It may be worthwhile, on occasion, to ask to meet the individual(s) at the plant responsible for such decisions. You will find that such personnel often betray the fact, or know only too well themselves, that they do not have adequate knowledge on which to base their purchasing strategy. Your visit may then act as a catalyst for an employer to acquire more expertise in the area of prevention, as well as in the initial prediction of risk from contact irritants and allergens. 

Park et al. (2010) have developed a framework with an integrated approach to supplier relationship management. It manages to combine purchasing strategies, considerations for suppliers, collaboration in product development, production activities and supphers assessments. In the following this framework is shown on the basis of a supplier assessment and development. 

Next, supplier selection is performed. According to the identified purchasing strategy, this means either a more distant or a closer relationship. Obviously, if a closer cooperation is intended, the selection procedure considers other, additional factors compared to those of an ordinary transaction relationship moreover, there is an expectation here that the decision will be more accurate and sound than in the latter case. However, circumstances might constrain the optimality of the selection for instance, if the supplier has dominance over the buyer, the availability of options is curtailed (Bensaou 1999). 

Consider restructuring purchasing strategies with a third dimension market volatility (Chakravarty 2010), in the context of Kraljic (1983). While for a low market volatility scenario Kraljic s framework is appropriate, it would need modification for high market volatility. For each of the four scenarios shown in Fig. 4.9, we discuss the implications of high market volatility as in Fig. 4.10. 

Develop purchasing strategies that support the business strategy and organizational goals... 

Purchasing Strategies that Support Organizational Goals and Objectives... 

How can the purchase portfolio matrix be used First, segment purchased goods and services into one of the four quadrants. Once the purchases are segmented, develop the appropriate purchasing strategies, policies, processes, and relationships. 

AF-11 Support Optimized Departure Management on Existing Runways BP-05 Create a Carbon Offset Purchasing Strategy... 

BP-04 Develop Climate Change and Energy Communication Matenals and/or Information Center BP-05 Create a Carbon Offset Purchasing Strategy BP-06 Develop and Apply or Sell Carbon Offsets BP-07 Offer Voluntary Carbon Offsets for Passengers... 

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