Answer to Question #224967 in Management for Rimix

Question

With relevant examples discuss how purchasing function can lead to competitive strategy supply chain management environment

Answer 1

An effective procurement process allows a company to achieve economies of scale, allowing it to cut expenses and manufacture more for less, giving it a competitive edge. It is the function of the purchasing department to assist the organization to select the best suppliers who will help in achievement of the set mission and vision which results to cross functional excellence as a strategy of the supply chain management. Effective Purchasing delivers cost improvement that enhance the agility of the supply chain. Supply chain can give your company a competitive edge by lowering costs throughout the value chain, boosting efficient and effective delivery of high-quality goods and services, aiding with product innovation, minimizing supplier risk, and increasing supplier resilience.