Considerations of the Buyer-Supplier Power when Making Decisions during Procurement Process

Topic

Considerations of the Buyer-Supplier Power when Making Decisions during Procurement Process

Instructions

Discuss the Considerations of the Buyer-Supplier Power when Making Decisions during Procurement Process.

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Buyer-supplier power is evident in the procurement process since it determines the quantity of goods purchased or supplied. In this context, it is crucial for buy-side managers to consider the procurement process. Additionally, the management must harmonize the procurement process to ensure that it incorporates this idea (Ballou, 2007). Significant ideas made by procurement managers relate to sourcing and distribution thus positioning decisions need to be made. Most processes run by medium-sized and large firms are formal hence they are greatly influenced buyer-supplier power. The supply chain is defined by the processes chances to succeed in creating utilities.

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