ABSTRACT
The development of supply chain management changes the relationships between companies providing goods to one another. This has affected the role of the procurement function. Procurement is involved with all aspects of business linking to quality, design, capital expenditure, outsourcing strategy and even marketing. In supply chains, the role is to create alliances with customers and suppliers for mutual benefit. The environment in most businesses has changed from a supplier-led to a customer-led operation. This has resulted from the increase in international trading, multinational competition and improvements in distribution systems. Traditionally, companies purchased items from a variety of suppliers, choosing a supplier at any time on the grounds of cost or availability, or less often, quality. Suppliers may be wary of committing major capacity to one customer. For effective supply, companies need support from both suppliers and customers. Suppliers are responsible for providing good quality products that meet performance, aesthetic, reliability and durability standards.
