Question

Purchasing has a golden opportunity to play an organizational strategic role. It’s unfortunate that this role is not realized too often. Purchasing personnel often say they are too busy managing the purchasing process to play a strategic role. Identify a typical purchasing process and then describe how purchasing personnel can play a tactical role (such as converting purchasing requisitions into purchase orders) while also playing a strategic role.

Answer 1

Answer:

Dual Supplier Selection Process: Dual supplier selection process is the process in which the purchasing manager identify two supplier who can provide same product, so that the purchasing manager can explore the tactic for managing the schedules and can develop the healthy competition among the two suppliers so that they remain competitive and fulfill the demand of purchasing manager’ company adequately. This dual supplier approach is good for managing and controlling the supplier and ensures that they can get the smooth supply from their supplier as per their demand and do not face any issue related to monopoly of the suppliers.

Thus this is strategic as well as tactic approach for the purchasing manager because in short term it helps in managing the demand tactfully as two suppliers are available so purchasing manager can explore suitable tactics for managing the supplier and develop healthy competition among them. This is strategic as well because two suppliers are developed and they will be able to support the demand for long time and will not face any delivery issue in long term. If ay of the suppliers is unable to supply, then other supplier will be available for demand and parallel third supplier can be work out.

Thus this helps in supporting the strategic role as well as the tactic role for the purchasing manager.