Session 05 Summary

THE STRATEGIC IMPORTANCE OF PURCHASING AND SUPPLY NETWORKS IN MODERN BUSINESS Student Instructor Institution Course and Code Date The Strategic Importance of Purchasing and Supply Networks in Modern Business Introduction Procurement and supply management plays a vital role and is critical for both tactical and strategic management objectives in the modern, diverse climate world of business. These strategies define how organizations interact with suppliers, customers, or any other stakeholders in the supply chain, thus defining the performance of the supply chain. Given the tendencies towards increased globalization and growth of markets, supply chain management is crucial for identifying the most efficient strategies for costs in the context of improving the companies' innovative potential and maintaining their competitiveness. This overview responds to how procurement and supply strategies increase business efficiency, acquire competitive advantages, and manage market risks in global markets when integrated with capacity strategy. Significance of the Topic Competitive advantage, cost management, and procurement and supply chain management innovation are essential models. Due to the continued globalization of business activities, supply chains become exclusive and comprehensive, which requires profound management initiatives (Turan et al., 2022). One such element is capacity strategy, which defines the level of operation and dispersion of activities among locations. Supply chain management is well coordinated with the capacity strategy so that these companies can effectively respond to short and long-run demands without risking underutilization or over-commitment. The emergence of outsourced services and global sourcing also increases the sustainability risks of a fluid purchasing system to address different demand levels and enable supply capacity to meet market positioning strategies. This topic still remains appealing due to its focus on supply c...