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Purchasing contributes significantly to an organization and to its business strategy only if its activities and contracts with suppliers are guided by support criteria for the final products that the organization sells. Outlined in this paper are four innovative purchasing strategies: capitation contracts; product life cycle cost contracts; affordability; and supply chain management. All these strategies are focused on the final products of the organization and are top-down approaches as they derive their goals and contracts from the organization's end markets. The strategies have unique information requirements that are very different in quality and characteristics from the needs of traditional purchasing systems; the information requirements are in some cases part of the advantages of the new strategies and in others problems with regards to implementation. Understanding the information requirements of the new purchasing strategies is a must for customers and suppliers alike. Information will be a resource as well as an entry barrier for suppliers. Suppliers that cannot invest in information or sophisticated information systems will not survive in this modern market. The purchasing strategies also have impact on information centers and libraries. Of particular importance is the emergence of electronic distribution which has profound effects on the supply chain of information. (Author/AEF)

Descriptors: Business, Foreign Countries, Information Industry, Information Management, Information Systems, Internet, Online Systems, Online Vendors, Organizational Objectives, Organizations (Groups), Purchasing, Strategic Planning, Supply and Demand, Technological Advancement, World Wide Web

Autor: Inbar, David


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