Managing purchasing in a supply chain context – evolution and resolution

Traces the development of purchasing from a materials acquisition function to supply chain management. The paradigm shifts to recognising every purchase is also a sale and that purchasing is more than buying. Contemporary purchasing incorporates strategic procurement – aligning suppliers' performance with purchasers' business strategies, supplier-base management – managing the structure and culture of supplier relationship, and lean supply organisation – energising internal and external organisational teams through flexible structures and responsive information systems. Tasks for purchasing and supply chain management can be differentiated at the operational, administrative and entrepreneurial levels. An incremental approach is recommended to changing practices and policies by encouraging organisational learning, teamwork and dissemination of experience with supply chain management.