Purchasing and Supply

“Relationships between organisations develop on the basis of common in" rel="nofollow">interests and dependencies and may reflect tensions between autonomy and in" rel="nofollow">interdependency, self-in" rel="nofollow">interest and team spirit, competition and cooperation (Nouwens and Bouwman, 1996). A company strategy to operate with various suppliers can utilise a portfolio of relationships to meet the requirements of different types of transactions. Usin" rel="nofollow">ing electronic commerce facilitates in" rel="nofollow">information exchange and enhanced communications between organisations and may also reduce costs, risk and uncertain" rel="nofollow">inty while also in" rel="nofollow">increasin" rel="nofollow">ing in" rel="nofollow">interdependency and join" rel="nofollow">int in" rel="nofollow">investment.” (Roberts and Mackay,1998:177) The quote from Roberts and Mackay (1998) above emphasizes how relationships in" rel="nofollow">in purchasin" rel="nofollow">ing might create a tension between autonomy and in" rel="nofollow">interdependency. The research article also in" rel="nofollow">indicates that the purchasin" rel="nofollow">ing approach within" rel="nofollow">in the organisational settin" rel="nofollow">ing is driven by proactive supplier management, than the impact of the external environment. The relationship between the supplier and buyer has its benefits, of cost, risk and uncertain" rel="nofollow">inty reduction as well as the challenges of in" rel="nofollow">increased in" rel="nofollow">interdependency and join" rel="nofollow">int in" rel="nofollow">investment. Select a small-medium or a large sized organization from which to carry out primary research (if access is not possible you can use secondary research). Any sector may be considered, in" rel="nofollow">includin" rel="nofollow">ing services, (not just manufacturin" rel="nofollow">ing) e.g. councils, transport, media, in" rel="nofollow">insurance, healthcare, hotels/caterin" rel="nofollow">ing, airport services, utilities, public services. Within" rel="nofollow">in the selected organization discuss Roberts and Mackay’s (1998) statement above. Based on your fin" rel="nofollow">indin" rel="nofollow">ings, discuss whether the statement is still valid today, and assess the extent to which you agree or disagree with the statement.