Abstract

Supply lines have gradually migrated in importance and, within the organizational structure, in label or title upwards in the hierarchy. No longer a denizen of the storeroom but instead thrust headlong into the boardroom, strategic supplier management means cost—and operational efficiency along with potential competitive advantages. Going from purchasing to procurement means attention not only to supplies but supplier markets, including their own risks, suppliers and competitors. From the suppliers' viewpoint, because suppliers might deliberately differentiate between customers, procurement departments per each customer must be prepared to make themselves attractive in ways that stand out to the supplier. This can take many forms, including operational, engineering, core values or quality excellence on the part of the buying company.