Principles of Buying

1681 Words Nov 28th, 2008 7 Pages

“In the long-term, the success of any organization depends on its ability to create and maintain a customer.” Do you agree? What does this have to do with purchasing and supply management?

Yes, I agree that the success of any organization depends on its ability to create and maintain a customer. No matter where the supply function is located on the organizational chart; each member of the supply organization has the opportunity to improve relations with internal customers and suppliers. By doing this there is a potential for a greater contribution to the organizational objectives. Buyers work with suppliers daily and create trusting relationships. These relationships can produce valuable contacts and deeper
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Some customers still prefer to transact with tellers one-to-one instead of ABMs and it is a challenge for banks to meet this demand. Financial institutions such as banks, credit unions etc rely on their services to maintain customers and operate their business. If a customer were unable to make a deposit or withdrawal from their bank account, they wouldn’t be long taking their business to a new bank. Maintaining and improving quality would e another objective for financial institutions. As the electronic age continues to grow, people want to be able to do more and more transactions on line. As banks are able to offer on-line banking, automatic payments, pay pal related services etc, they will continue to maintain and gain customers.

Duchess University Case pp52-54

If you were Jim Haywood, what purchasing organization changes would you make? Why? How would you do it?

Immediate Issues

The immediate issues in this case are that the Purchasing department is now down to 11 employees from its previous 14. Jim needs to decide if this is the time to reorganize the department. Jim has approximately 5 months to decide what to do and how to do it (assuming it is May). In September there will be an upgrade in Peoplesoft and an introduction to a web-based purchase requisition system. Having the department mapped out by then would be ideal. Basic Issues


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