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Illustrate the strategic positioning tools?
Strategic positioning tools according to Reck and Long:
• Passive (as clerical and transaction based) purchasing functions only onto the requests by another departments, seems as a clerical task only. A reactive is not pre-emptive administration role into the organisation.
• Independent (commercial but even ‘at arm's length') purchasing gets more of a professional approach for example implementing IT systems to make possible greater speed and accuracy of purchasing. This raises the awareness of its significance in the organisation.
• Supportive or proactive purchasing is consider as an essential role and is more pre-emptive at delivering information to the departments, this has good procedures and controls over supplier sourcing as well as selection processes.
• Integrative (complete partnership, strategic collaboration and sourcing) purchasing is seems as strategic and core necessary to support the organisations competitive strategy, completely integrated to align corporate objectives along with its supply chain policies.
Explain the consequences of risks
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