Four Enablers of Purchasing and Supply Chain Management

Now that we have a better understanding of the terminology surrounding purchasing and supply chain management, we must recognize that excellence in these areas does not just happen. What separates firms that achieve real benefits from those that fail to reap any benefits is a commitment to the four enablers of purchasing and supply chain excellence. These enablers provide the support that makes the development of progressive strategies and approaches possible. Later chapters present these four areas in detail.

Exhibit 1.5 presents the four enablers of purchasing and supply chain excellence. This model shows that firms have certain guiding philosophies and business requirements that are the foundation of all supply chain activities. These guiding philosophies and requirements may relate to areas such as globalization, customer responsiveness, or supply chain integration. The four enablers, in turn, support the development of strategies and approaches that not only align with an organization’s philosophies and requirements but also support the attainment of purchasing, supply chain, and organizational objectives and strategies.