The 25 New Rights of Purchasing, Part III

PurchTips edition #279

 

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Ready To Go Beyond The Original "5 Rights?"

In editions #275 and 276, I introduced the first 10 of the "25 New Rights of Purchasing" to replace the traditional "5 Rights of Purchasing." Today's edition adds Rights 11 through 15. I'll continue this list every other edition of PurchTips until we get through all 25.

  1. Right Environmental Responsibility - Today, organizations seek to either gain a competitive advantage or assuage consumer concerns by ensuring that their supply chains are environmentally-friendly. Therefore, you are expected to select suppliers and products that embrace recycling, avoid deforestation, show care for animal welfare, and utilize other methods of preserving elements of the environment.
  2. Right Ethics - As a purchasing professional, you are expected to act ethically and should expect the same of your suppliers. Whether it be adhering to "no backdoor selling" policies or refusing to participate in international dealings that may be deemed "bribery" in their customers' countries, you must hold your suppliers to a high standard for respectability so that your organization doesn't get associated with unethical behavior.
  3. Right Supplier Support - Your internal customers expect your suppliers to "be there" when they are needed. This may mean offering a 24x7 call center, providing on-site assistance, or having some other form of on-demand support. Having operational difficulties prolonged due to unavailable or inadequate supplier support can damage your credibility with internal customers.
  4. Right Risk Management - Force Majeure events used to give suppliers excuses for failing to perform. Not anymore. Great suppliers are expected to have risk management strategies that enable them to recover quickly from such events. You should evaluate a prospective supplier's risk management strategy for all critical buys.
  5. Right Financial Stability - Being negatively impacted by a supplier's seemingly sudden downsizing or insolvency is usually preventable if you have a decent knowledge of finance and you evaluate a supplier's financial statements before agreeing to an important deal.

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Are You Getting The Most Out of Your NLPA Membership?

Members of the NLPA get more than just articles like this by email. As a member, you also get access to:

  • The Procurement Training & Certification Starter Kit
  • The latest Purchasing & Supply Management Salaries Report
  • Leading-Edge Supply Management™ magazine
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  • And more!

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