Paper1

After reading the notes and the chapter assignments, what are your thoughts about the purchasing function and the evolution of supply management in the 21st Century?

1. Purchasing is the core process of any business or governmental organization. Purchasing is essential to the overall success of the organization because you have to purchase the right quality of material, at the right time, in the right quantity, from the right source, at the right price. As it is stated in the text every dollar saved in purchasing is equivalent to a new dollar of profit. The concept of supply management in the 21st century is the same as it was 100 years ago the only difference is the evolution of how we do and that comes with trial and error, technology, knowledge, etc. The bottom line for most business is to achieve and sustain competitive advantages within an increasingly fast moving environment.

Based on your experience or readings, discuss how Supply Management and in particular Supply Chain Management benefits organizations in the public and private sectors.

2. Supply chain management benefits the public/private sector due to them having to disclose complete transparency of everything to include but not limited to the procurement process, rules, and all transactions must be spelled out and available to the public as well as to potential suppliers. Transparency creates ethical and decorum in business relationships, which ultimately allows organizations to simultaneously collaborate and be competitive. Even with the above being said they can still profit if they integrate the public sector requirements with such private sector concepts as strategic sourcing, supplier relationship management, and a comprehensive inventory management program. Below are other benefits to public SCM:

Greater visibility: Visibility creates subcontracting opportunities for a diverse range of organizations that can bring increased competition, dynamism and particular skills or strengths to...