Explain why 'Supply' has been described as being more significant than 'Purchasing' for an organisation.
Purchasing
Purchasing deals with the day-to-day buying of goods. Purchasing concentrates on the goods themselves containing whether they conform to the quality demanded, if they are priced appropriately, and make sure that they are delivered at the time needed to the correct location.
Supply
Supply concentrates on the method of relationships. Supply deals with significant considerations beyond the day-to-day containing:
- Planning and executing a supply strategy;
- managing the overall supply process;
- considering suitability, feasibility and acceptability of outsourcing activities;
- investigating whether strategic partnerships could be established, and
- the number of suppliers it should use.
In Reck & Long's terms supply is method by nature.