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Evolving roles and responsibilities of purchasing organizations.
While there is general agreement that the purchasing function can make a substantial contribution to the overall competitive position of the firm, organizational issues in the supply function will influence how and where contributions are made.[1] As firms explore new ways to reduce costs, cut leadtimes, improve product development times, and integrate the supply function within the organization, many are reexamining the organization structure of their purchasing area. Several of the classic questions still exist: Should the supply area be centralized, decentralized, or have a hybrid structure? To whom should the chief purchasing officer (CPO) report? What functions should ...
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