Purchasing and Commodity Strategy
Purchasing Strategy Steps Forward
Initiative #6: Purchasing Strategy Development
Take the Initiative: Continuing coverage of the trends shaping the profession
By Roberta J. Duffy, writer for Purchasing Today®.
December 1999 Purchasing Today®, page 41.
Developed in conjunction with total organizational strategies and supply partner objectives, effective purchasing strategies can become the means to a competitive chain.
I'm purchasing the corporate jet. Years ago, that would've been a job for the board of directors. Now that responsibility goes to us in the purchasing and supply management department. Our organization recognizes the value we can bring to the total corporate spend and purchasing decisions." This example, given by one organization's chief purchasing officer, illustrates the progress of purchasing strategies and their increasing importance within the organization. Evolving from an era after World War II, when many organizations were purely sales-volume driven, to more recent years when the supply chain was identified as a means to reduce costs and add value to the entire buying process, purchasing strategies have had to change with the times. Just how that type of strategy is developed and what key elements must be included is one of the initiatives in the NAPM and Center for Advanced Purchasing Studies report, "The Future of Purchasing and Supply: A Five- and Ten-Year Forecast." The 1998 study says that in the coming years, successful purchasing strategies will be directly linked to organizational and supply chain goals, will be more formalized, and will result in a purchasing contribution that gives an organization competitive advantage.
Linking to Organizational Objectives
The first step to successful purchasing strategy development is linking strategy to organizational objectives. To accomplish this, strategy development must be a formalized process, according to Robert J. Trent, Ph.D., associate professor of management at Lehigh
Initiative #6: Purchasing Strategy Development
Take the Initiative: Continuing coverage of the trends shaping the profession
By Roberta J. Duffy, writer for Purchasing Today®.
December 1999 Purchasing Today®, page 41.
Developed in conjunction with total organizational strategies and supply partner objectives, effective purchasing strategies can become the means to a competitive chain.
I'm purchasing the corporate jet. Years ago, that would've been a job for the board of directors. Now that responsibility goes to us in the purchasing and supply management department. Our organization recognizes the value we can bring to the total corporate spend and purchasing decisions." This example, given by one organization's chief purchasing officer, illustrates the progress of purchasing strategies and their increasing importance within the organization. Evolving from an era after World War II, when many organizations were purely sales-volume driven, to more recent years when the supply chain was identified as a means to reduce costs and add value to the entire buying process, purchasing strategies have had to change with the times. Just how that type of strategy is developed and what key elements must be included is one of the initiatives in the NAPM and Center for Advanced Purchasing Studies report, "The Future of Purchasing and Supply: A Five- and Ten-Year Forecast." The 1998 study says that in the coming years, successful purchasing strategies will be directly linked to organizational and supply chain goals, will be more formalized, and will result in a purchasing contribution that gives an organization competitive advantage.
Linking to Organizational Objectives
The first step to successful purchasing strategy development is linking strategy to organizational objectives. To accomplish this, strategy development must be a formalized process, according to Robert J. Trent, Ph.D., associate professor of management at Lehigh