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Procurement & Organisational Buying (buying process (need, spec,…

- - - - nature
        
        mass/ customise
      - purchasing fuction
        
        centralised/ decentralised
      - policy
        
        lean/ JIT
      - ethics
        
        ethical sourcing
      - system
        
        fast fashion
      - technology
        
        emarket places
      - individual
      - relationship
        
        relational approach
        
        long-term
        
        transactional approach
        
        short-term
  - - - reduce cost
      - solve problems
      - innovative ideas
      - increase operational efficiency
      - security
    - - performance
        
        delivery
        
        product
        
        respond to change
      - market reputation
        
        brand recognition
      - relative economic power
        
        buyer exposure
        
        exposure to other value chain
        
        market share
  - - - socio-economic changes
      - customer power
        
        lenovo acquired IBM personal computer
        
        purchasing department was asked to save £100m in direct spending cost within 18 month
      - globalisation
      - market stagnation
        
        mature market
        
        shrink profit margin
        
        add value
    - - nature
      - structure
        
        centralise: greater consistency & control
        
        NHS
        
        less possibility to meet local client needs
      - policy
        
        sign-off by senior manager
      - ethics
        
        Conoco's supplier diversity programme
      - technology
        
        online marketplace
      - purchase system
        
        fast fashion
        
        JIT production technique
    - - perception
        
        losing face/ pressure
      - personal influence
        
        how power is distributed in the DMU
      - social relationships
        
        personal relationships with suppliers
        
        activities outside the work context
    - - relational approach
        
        long-term
      - transactional approach
        
        short-term
      - affected by leadership styles
- - - - larger DMU
      - risk
      - longer time
      - cost
      - alert "in-suppliers"
  - - - suppliers make a better offer
        
        buying ERP can cost millions of pounds
        
        involves fraud/ risk
  - - - resolve problems