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Stages of Purchasing Development (Stage 1: Passive :red_flag:…
Stages of Purchasing Development
Stage 1: Passive :red_flag:
Definition
Has no strategic direction
Primarily reacts to the requests of other function
Characteristics
spend plenty of time on quick-fix routine operation
Low organisational visibility causes functional & individual communication
Supplier selection:based on Price & Availability
Overall characteristics: Clerical function
Evaluation based on Complaints
Limited career advancement
Professional development deemed unnecessary
Attitude toward suppliers: adversarial
Sources of new ideas: Trial & error
Stage 2: Independent :red_flag:
Definition
Adopt latest procurement techniques & processes
Strategic direction is independent of firm's competitive strategy
Characteristics
Performance based on cost reduction & efficiency disciplines
Limited organisational visibility
Coordination links between procurement & technical disciplines
Top mgmt recognise the importance of professional development ( recognise contribution to profitability
Attitude toward suppliers: Variable
Overall characteristics: Functional efficiency
Possible career advancement
Sources of new ideas: Current purchasing practices
Stage 3: Supportive :red_flag:
Definition
Adopt purchasing techniques & products to support firm's competitive strategy
Characteristics
Attitude toward supplier: Company resources
Evaluation based on competitive objective: focus on experience, motivation & attitude
Variable organisational visibility: purchasers included in sales proposal teams
Markets, products & suppliers are continuously monitored & analysed
Professional development as the elements of strategy
Overall characteristics: Strategic Facilitator
Sources of new idea: Competitive strategy
Stage 4: Integrative :red_flag:
Definition
Strategy is fully integrated into firm's competitive strategy
Contribute part of integrated effort to formulate & implement strategic plan
Characteristics
Attitude toward suppliers: Mutual independence
Evaluation based on strategic contributions
High organisational visibility: permanent lines of communication with other functional areas
Cross-functional training is available
Professional development focus on strategic elements of the competitive strategy
Overall characteristics: Strategic Contributor
Sources of new idea: Inter-functional information exchange