Purchase strategy

Purchase strategy
See also
Types of supply Contract logistics Inventory management techniques Distribution logistics subsystem Optimum size of the order Principles of Supply Chain Management Media house ABC method Dependent demand

Companies buy raw materials and consumables with varying degrees of processing and technical readiness. The diversity of the range of products, forces management to choose the right approach to the process of planning and organization of purchase.

Normative purchasing strategies

Product sourcing strategies regarding the number of suppliers:

• one supplier (single sourcing)
• one supplier which is also a monopolist in relation to the acquired product (sole sourcing)
• two suppliers (dual sourcing)
• many suppliers (multiple sourcing).

Purchasing strategies taking into account the subject of purchase, i.e.

• purchases of individual items (unit sourcing)
• purchasing product modules (modular sourcing).

Purchasing strategies separated because of the geographical area of ​​penetration, the basic strategies are:

• local (local sourcing)
• national (domestic sourcing),
• global purchasing (global sourcing).

The strategies taking into account the location of delivery, i.e.

• external suppliers (external sourcing)
• internal suppliers (internal sourcing).

Strategies taking into account delivery time:

• delivery to the warehouse, increasing existing stocks (stock sourcing)
• delivery in accordance with the pull rules and just-in-time - directly to the appropriate production position.

Strategies taking into account the purchasing entity:

• individual purchases
• joint shopping

See also:

• Purchasing in the case of discontinuities in needs
• Make-or-buy analysis

References

• Burger, P. C., & Cann, C. W. (1995). Post-purchase strategy: a key to successful industrial marketing and customer satisfaction. Industrial Marketing Management, 24(2), 91-98.