The Strategic alignment guides various organizations that may include medium and small scale businesses in defining the important issues to the companies thereby creating a road map towards achieving the purpose of an organization. Proper planning is required for the strategic orientation, readiness in reassessing and making regular adjustments in the workforce that facilitate the achievement of an organizations objectives (Anderson, 1987).
The benefits of long-term contracts can be majorly associated with the long-term development of the purchasing organizations. The contracts ensure a steady cash inflow to the organizations, maintaining multiple customers thereby ensuring a steady expansion over the years.
Good relation between buyer and supplier can help in shortening the time of supplier selection. When there exists a good relation between buyers and suppliers, buyers find it easier to associate with specific suppliers hence shortening the time spent in outsourcing the suppliers since they already have contacts.
The continuous supplier improvements can be ensured through good relations between the customers and the suppliers. Enlightenment to the suppliers can be used as the key to ensuring a continuous supplier improvement by the customers. Purchasing can be referred to attempting to obtain goods or services to achieve the goals of an organization. Purchasing ensures a steady flow of goods or services rendered to the firm.
The purchasing department takes account of all the stock required by the organization, making it possible to plan for the deficit. The department may be used to guide the organization on the corporate associations in areas that require co-operations from the cooperate the world in improving the services rendered.
The business policies may restrict the expansion of an organization in cases where the areas of operation are restricted. The policies set by the organization can ensure production of quality goods and services.
The Strategic Sourcing is procurement procedure that improves the purchasing events of an organization (Christian, 2009). It is a component of supply chain management. A partnership between companies where one acts as an outsourced company, working on behalf of the other may be considered to be an example of outsourcing.
Purchasing improves the competence, therefore, to realize the profits it is important to maintain and select proficient suppliers. Several factors, however, may affect the ability of an organization to select the appropriate supplier. Understanding the selection criteria of the supplier is important for an organization. Several factors may be considered by an organization including; finance, commitment, high quality, consistent delivery times, suitable technological aptitudes (Cox, 1999).
Anderson, J. C. (1987). An approach for confirmatory measurement and structural equation modelling of organizational properties. Management Science, 33(4), 525-541.
Christian, S. (2009). The Purchasing Chessboard: 64 Methods to Reduce Cost and Increase Value with Suppliers. Berlin: Springer.
Cox, A. (1999). Power, value and supply chain management. Supply Chain Management: An International Journal, 4(4), 167-175.
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