The Harvard Essay

The Harvard Essay

[Date of Submission]

Abstract

Among the different functions of an organization like Human Resource Management, Finance, Marketing etc, the least function always considered is Procurement, besides the fact that procurement contributes to sixty percent of the cost of operating in an organization. The ratio of procurement in a manufacturing firm is expected to be higher than sixty percent. With the passage of time and economic development, the top management of the firms realized that procurement needs to be revealed more carefully with reference to the recent economic recession and crisis. Customer value, business relationships, supplier and buyer are some of the various terms of procurement that tend to be understood in developing complete information about procurement. This paper reflects various examples that have been derived from different peer-reviewed journals in order to understand how value can be added to a business through the means of procurement. The following paper will also identify in terms of financial and growth, the benefits gained by the Supplier and Buyer from each other in terms of long term business relationship. Everything in this world has two perspectives, negative and positive, same in the way, this paper also highlights the negative aspects of procurement along with the positive ones. In the end, it can be concluded that any kind of business can gain profits through developing positive relationships in procurement as it adds value to the company.

Introduction4

Discussion4

The Model Framework of Supplier-Buyer Relationships4

Example5

The Related Theories to Buyer and Supplier Relationship5

Example6

The Model of Continuance and Relationship Development and its Key Variables7

Example7

The Three Stages of Supplier and Buyer Relationship8

The Sources of Customer Value in Supplier-Buyer Relationships9

The Deliverance and Creation of Value in Relationships10

The Importance of Relationship Value and Credence Goods in Professional Services10

The Different Dimensions of Customer Value12

The Knowledge of Agent12

Trust as a Key Relational Building Block13

The Personal Interaction Relational to the Services14

The Fulfilment of Services15

The Location of the Supplier and the Buyer15

The Impact of Direct and Indirect Costs16

Conclusion16

Procurement

Introduction

The success of every project or a business lies within its essential core elements. Among all the elements, the process of procurement is considered to be vital for the success of an organization. In terms of business support, one gets too exposed to the free and current potential market through the means of the procurement process (Ambrose, 2008, pp.360). One of the greatest advantages of the procurement process is that interaction to more than one business available in the outside or inside of the region can be done at one time.

The key feature of the procurement process is limited mismanagement due to the structure of the process. The process of procurement is not limited to only the agreed services or products and its supplies, but the procedure allows an effective development of the client and supplier relationship (Al-Mudimigh & Ahmed, 2004, pp.309). With the help or procurement process, a collaborative and active role of a partner can be played by the supplier and the procedure of supplying till the delivery of finished product in accordance to the client ...