| Differentiate between the principles and practices of Purchasing and Supply Management used in the public sector (e.g., Governments, DoD ) and the private sector (e.g., manufacturing and retail). What are the salient differences, and how do these differences affect the establishment or maintenance of buyer-supplier relationships and the implementation of Purchasing and Supply Management processes? A. PRINCIPLES OF SUPPLY MANAGEMENT Adherence to supply management principles transforms the tug of war between customer service and profitable growth into a balancing act. By determining what customers want and how to coordinate efforts across the supply chain to meet those requirements faster, cheaper, and better, companies enhance both customer satisfaction and their own financial performance. Government Supply Management frequently called procurement has a major impact on the efficient and effective use of tax dollars at all levels of government. Virtually all the problems present in manufacturing organizations are present in government procurement. Not surprisingly, many advances in the art and science of supply management originated in the federal government. PRACTICES OF SUPPLY MANAGEMENTSupply Management is the hub of a larger part of a company’s business activity. By its nature, supply management has continuing relationships with all the other departments in the firm as well as with the firm’s suppliers. Supply management operations cuts across all departmental lines.No two organizations are alike, and no two organizations will apply purchasing and supply management best practices in exactly the same way. Whether a commercial firm, not-for-profit agency, or government entity, every organization must be guided by its structure, mission, history, culture, and strategic goals. B. What are the salient differences, and how do these differences affect the establishment or maintenance of buyer-supplier relationships and the implementation of Purchasing and Supply...
