Value creation and purchasing strategy

Increasingly, as European manufacturers face fierce competition from new Asian sources, suppliers are looked to as sources of competitive advantage. This article discusses the strategic role that differentiated purchasing and supply management represents in support of companies overall product/market and business strategies. 'Concentrate on your core business' has become today's mantra as purchasing gains more attention from management. Many activities can be carried out at lower cost by specialized suppliers, companies gain flexibility and management can focus on core business. Purchasing's strategic role is to develop a worldwide, competitive supply base and to integrate these suppliers effectively into the company's business processes.