ABSTRACT
This chapter focuses on Deming's fourth point: end the practice of awarding business on the basis of price tag; and purchasing must be combined with design of product, manufacturing, and sales to work with the chosen suppliers. The style of the relationship between a customer and a supplier can be described as being one of three kinds: adversarial, intrusive, and enhancing. There are three factors involved in purchasing. They are price, service and quality. A piece of research carried out by Barrie Dale and Peter Shaw conveniently confirms what was already suspected, namely that the most potent factor affecting purchasing decision-making used to be price. Followed by service and trailed by quality. Until a few years ago, the sequence has switched, it now goes quality, service, price.
