Purchasing and Supply Management by P. J. H. Baily B.Sc. (Econ.), A.C.I.S., M.Inst.P.S. (auth.)

By P. J. H. Baily B.Sc. (Econ.), A.C.I.S., M.Inst.P.S. (auth.)

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Willett in Purchasing Magazine for 18th July, 196:1. 'First, prove that you can get what they want when they want it. And quit crying about every rush job. Other people have problems too. Get the goods - that's purchasing's job. Nothing builds confidence like performance. And second, give credit where credit is due. It's rare to be complimented, isn't it? Well, try it on the other fellow. When we make a saving, we send a note to the person concerned with a copy to his boss. This note usually includes a sentence like this: "Thank you for enabling us to make a cost reduction of ...

Complete centralization is really only workable when the number of orders originating locally is relatively small. More or less complete decentralization can be observed in several organizations which operate a number of factories each of which has its own product range and its own purchase department. There is still some scope for these departments to get together to sign group contracts for such common use items as vehicles or typewriters and perhaps even for production materials, but there is not enough scope to keep a central office busy.

But he had no intention of letting anyone else choose suppliers; the choice between different suppliers was really a choice between different proposals, at different prices, and was thus, as he saw it, a matter of the way he chose to spend his publicity budget and conduct his marketing campaigns. It was decided to appoint a young man, mid-twenties agegroup, as buyer at about £1,500 a year. He would have a private office and a secretary and would rank more or less with the chief engineer, the maintenance engineer, the works manager, the company secretary and the sales manager, who were all earning considerably more than £1,500 a year.

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