5. STRATEGIC DECISIONS IN SUPPLY MANAGEMENT STRATEGIC SUPPLY MANAGEMENT IS FOUNDED ON THE CONVICTION THAT A SIGNIFICANT COMPETITIVE EDGE CAN BE GAINED FROM THE SUPPLIERS AN ORGANIZATION HAS DEVELOPED AND ITS SUPPLY SYSTEMS AND SUPPLIER RELATIONS.
6. STRATEGIC DECISIONS IN SUPPLY MANAGEMENT SUPPLIER PERFORMANCE HAS A GREATER IMPACT ON THE PRODUCTIVITY, QUALITY AND COMPETITIVENESS OF THE ORGANIZATION.
7. STRATEGIC DECISIONS IN SUPPLY MANAGEMENT RECENT TRENDS TO BUY INSTEAD OF MAKE, TO OUTSOURCE INSTEAD OF CONTINUING TO MAKE, TO IMPRO VE QUALITY, TO LOWER INVENTORIES, TO INTERGRATE SUPPLIER AND PURCHASE SYSTEMS, AND TO CREATE COORPERATIVE RELATIONS SUCH AS PARTNERSHIPS HAVE UNDERLINED THE NEED FOR OUTSTANDING SUPPLIER PERFORMANCE.
15. PURCHASE-SUPPLIER RELATIONS OUTSTANDING SUPPLIER PERFORMANCE NORMALLY REQUIRES EXTENSIVE COMMUNICATION AND COOPERATION BETWEEN VARIOUS REPRESENTATIVES OF THE BUYING ORGANIZATION AND THE SELLING ORGANIZATION OVER A LONG PERIOD OF TIME.
16. PURCHASE-SUPPLIER RELATIONS BRINGING NEW SUPPLIERS OUTSTREAM IS EXPENSIVE AND IS OFTEN ACCOMPANIED BY A PERIOD OF LEARNING AND AGGRAVATION FOR BOTH SIDES.
17. PURCHASE-SUPPLIER RELATIONS SYSTEM AND PHILOSOPHICAL COMPATIBILITY BETWEEN PURCHASER AND SUPPLIER HAS BECOME MORE VITAL AS WAYS AND MEANS ARE FOUND TO SHORTEN THE TIME TAKEN FROM REQUISITION TO ACTUAL RECEIPT OF THE ORDER.
18. PURCHASE-SUPPLIER RELATIONS SUPPLIER GOODWILL GOOD SOURCES OF SUPPLY ARE ONE ASSURANCE OF GOOD QUALITY TODAY, PROGRESSIVE THINKING AND PLANNING IS A FURTHER ASSURANCE OF IMPROVED QUALITY TOMORROW.
19. PURCHASE-SUPPLIER RELATIONS SUPPLIER GOODWILL THIS GOODWILL HAS BEEN CULTIVATED THROUGH THE DEVELOPMENT OF TRADEMARKS AND BRANDS, THROUGH EXTENSIVE ADVERTISING AND SALE PERSONNEL. ( RELATIONSHIP MARKETING)
20. PURCHASE-SUPPLIER RELATIONS SUPPLIER GOODWILL NO COMPANY CAN BE WORLD CLASS IF IT DOES NOT MEASURE ON A REGULAR BASIS THE SATISFACTION LEVEL OF ITS KEY SUPPLIERS AND TRY TO IMPROVE CONSTANTLY ON ITS RELATION WITH ITS SUPPLIER.
23. PURCHASE-SUPPLIER RELATIONS UNACCEPTABLE SUPPLIER Unacceptable supplier fail to meet operational and strategic needs of the buying organization. ACCEPTABLE SUPPLIER PREFERRED SUPPLIER EXCEPTIONAL SUPPLIER
24. PURCHASE-SUPPLIER RELATIONS UNACCEPTABLE SUPPLIER ACCEPTABLE SUPPLIER Acceptable supplier meet current need as required by contract. PREFERRED SUPPLIER EXCEPTIONAL SUPPLIER
25. PURCHASE-SUPPLIER RELATIONS UNACCEPTABLE SUPPLIER ACCEPTABLE SUPPLIER PREFERRED SUPPLIER Both parties work toward mutual improvements to eliminate nonvalue adding activities. EXCEPTIONAL SUPPLIER
26. PURCHASE-SUPPLIER RELATIONS UNACCEPTABLE SUPPLIER ACCEPTABLE SUPPLIER PREFERRED SUPPLIER EXCEPTIONAL SUPPLIER Exceptional suppliers anticipate operational and strategic needs of the purchaser and are capable of meeting and exceeding them.