Purchasing function has always been one of most important functions related to running an organization, involved both in manufacturing and providing services as lack or poor quality of raw materials results in organization’s inability to manufacture goods or create service, or poor quality of manufactured goods and created services. According to Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2010), evolution of separate branch of management, aimed at managing supplies was predetermined by a range of factors. Among them it is worth mentioning such critical trends as globalization, evolution of global sourcing, extension of supply chains and complication of business-related laws and regulations.
Supply chain management is of great use for both public and private organizations in terms of ensuring competitive advantage (both in terms of quality and pricing strategies) due to concluding contracts with the most advantageous provisions possible, choosing most cost efficient logistical schemes, and ensuring continuity of contractual relationships and developing mutually beneficial links with suppliers and intermediaries.
Successful implementation of supply chain management-related initiative is dependent on the range of factors. Most important of them are related to the choice of potential suppliers (organization of tender), analytical tools used to research into pros and cons of each choice, working out reliable and advantageous contract provisions, emphasizing mutual advantages and continuity of relationships with each supplier and intermediary.
To my mind, supply management and establishing strategic alliances is important both for public and private sectors as these factors exert significant influence on organization’s ability to provide consumers with quality products and services, which is equally important for both sectors. Personally I would like to work as a supply chain manager for a private sector organization as this I consider experience in this sector both valuable and challenging.
References
Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2010). Supply management (8th edition). New York, NY: McGraw Hill Education
