The Buyer-Supplier Considerations in making decisions during the procurement process

Topic

The Buyer-Supplier Considerations in making decisions during the procurement process

Instructions

“Buyer-supplier power affects both the management and outcome of buyer-supplier exchanges. As a result, buy-side managers need to consider the concept when making decisions at each stage of the procurement process”. Discuss this statement, illustrating your answer with examples.

Answer preview

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. Therefore, it is of paramount importance to aligning procurement strategies to deliver value for money.

Word count: 2808