Week 2 Reading
What is Amazon Effect–use link on syllabus or http://www.tompkinsinc.com/amazon-effect/
Gartner Spend Visibility–spend_visibility_do_you_have_180201.pdf
Choose one of the three questions below. Share your response to the chosen prompt.
- Operations (production) lies at the heart of many firms. Purchasing supports production activities in multiple ways (e.g., raw material availability, quality, etc.). Explain how purchasing supports production operations?
- There is a complicated relationship between purchasing and marketing. Does purchasing tell marketing what to do, or does marketing set the goals for purchasing? Explain who has the upper hand in this relationship. Please justify your answer with a logical argument or an example.
- Finance typically wants to minimize purchasing costs. However, buying the cheapest raw material does not always make sense. How can purchasing persuade finance to buy more expensive products/services? Please justify your answer with a logical argument or an example.