Sound ethical conduct is really important to success in the purchasing field, as is having a solid understanding of legal requirements. This video discusses three important legal documents for sourcing globally and also explains some unique circumstances that challenge a buyer’s business conduct.
- "If you don't have integrity, you have nothing." … That sounds like something a great philosopher … from the past might say, but actually it comes … from Henry Kravis, the founder of a private equity firm … here in the U.S. … I think that's a pretty good quote to kick off … a conversation on legal and ethical considerations … for purchasing professionals, … because sound ethical conduct … is especially critical to success in the purchasing field. … Buyers are exposed to rather unique situations … that may challenge their business conduct. … Here are a few circumstances that buyers must avoid. … Purchasing personnel must be very careful … about accepting favors from suppliers, … even the smallest of favors, like dinner, … or tickets to a sporting event. … Contracts must be awarded to suppliers … based on the merit of their bid. … The most extreme form of a favor is called a kickback, … in which the buyer receives a cash payment … from the supplier after the contract is signed. … Believe it or not, …
- Explain the purchasing process.
- Define purchase order.
- Describe the intent of a purchasing policy.
- Distinguish types of purchasing structures.
- List the steps of selecting a supplier.
- Identify enablers for success in worldwide sourcing.
- Perform price and cost analysis.
- Measure supply management performance.