Core Compancies of Purchasing Activities and E-Businesses

Core competencies:

After reading the text and conducting research on the internet some of the core competencies that are common to all activities are cost management, knowledge and expertise in making purchase through electronic commerce technology, strategic sourcing, and the need for speed in decision making for products and services. All purchasing activities have a primary objective obtaining the maximum value of each dollar spent. These purchasing activities need to be able to make quick decisions on what products and services to buy. The involvement of supply management early in the decision making process. All purchase activities must conduct supplier evaluation, selection, and development.

Elements unique to Institutional Purchasing: The requirement to purchasing insurance for large diverse groups. New construction and remodeling programs constitute a significant part of their total expenditures. Institutions are able to generate revenue from surplus and salvage. Procurement is obtained from a broader spectrum of materials and services. In Institutional activities it is difficult to control sales personnel and backdoor selling.

Elements unique to Government Purchasing Activities: The Department of Defense and NASA expenditures account for 60 percent of the federal procurement expenditures. The government has to manage additional cost associated with lead time; the presence of stricter government rules and regulations, socioeconomic programs. The government obtains of spending budget through the use of taxes paid by business and citizens or bonds to purchase required goods and services, and the requirement for design and performance specifications. In government purchasing there are higher levels of quality expected from those items have been procured.

Elements unique to Commercial Activities: Within the commercial activities buyer’s requirements, sources, specifications, bid requirements, and prices paid are considered guarded information...