The paper "Critique of the Purchasing and Procurement Strategies" is a good example of management coursework. This essay is trying to critique the purchasing and procurement strategies. The majority of the common practices in the procurement process have undergone drastic changes in the current years. For instance, traditional purchasing has now changed into supply chain management (Caniels and Gelderman, 2005). Another reason as to why there is close cooperation between the suppliers and the buyers is because of the aspect of globalization in the marketplace. However, the procurement process is mostly focused on various aspects such as the cost, delivery, flexibility, quality and also technology. Summary of key aspects There are huge costs that are usually incurred in the process of setting up deals with the new suppliers, even though the management program of the supplier relationship can do away with some of those costs.
Moreover, through the cooperation in a mutual relationship which is beneficial with the main suppliers, a business enterprise can strive for the cost savings. The establishment of a good working relationship with the suppliers can bring about cost savings, by reducing delays and also quality issues (Uyarra and Flanagan, 2010).
Also, through the establishment of the supplier relationship, communication between the suppliers and the buyers also improves. Also, suppliers get to understand more about the businesses they operate, thus enabling them to meet their requirements more efficiently. The decrease in the delays of the supply chain greatly improves the flow of the business operations. Besides, in case various issues arise in the ordering process, the good working relationship existing between the supplier and the buyer can make it easy to resolve those issues.
However, huge fluctuations in the market prices in most cases discourage consumers from buying commodities. The majority of these price fluctuations are mainly caused by the rise in the volatility of commodity prices (Caniels and Gelderman, 2005). Moreover, through the adoption of the principles for supplier relationship management, companies can take advantage of having fixed prices for their commodities. Critique of the literature Importance of buyer-supplier relationships The major importance that is usually associated with the buyer-supplier relationship is that it always creates value for the two parties which are involved that is the buyers and the suppliers of the commodities.
Another importance is that through the relationship various issues which are related to the marketing fields and also purchasing can be easily addressed (Zheng, et al. , 2007). Moreover, even though the study about the buyer-supplier relationships has been conducted in different research streams, a lot of efforts have been directed on the relationship with the private suppliers as compared to the government suppliers. Cultural influence on buyer-supplier relationships The major challenge that is usually attributed to conducting business across the cultures is actually about understanding the cultural differences.
Moreover, it is quite necessary to understand the cultural differences and also know how cultural difference should be handled. However, one of the ways in which cultural differences should be handled is through adopting both norms as well as the behaviors that are associated with the national culture of the other party (Uyarra and Flanagan, 2010). Therefore, the aspect of adaptation is one of the ways through which cultural differences in interactions can be managed between the buyers and the sellers of the commodities.
Moreover, the willingness of the two parties to make adaptations is a clear implication that they understand the importance of adapting to business activities.