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1) Who are the internal and external customers for private, public, not-for-profit, global, and government organizations? How are they different? How does an organization tie its internal and external customer’s expectations to its procurement strategy?
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2) You are the director of procurement. Your CEO has come to you with a request to reduce material costs by 20%, in order to increase the corporate profit margin. Would you challenge a target like this? Why or why not? What is the appropriate timeframe for an initiative like this? What types of analyses would you perform to develop your strategy? Describe a few elements of your strategy to meet this objective.
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Solution Preview
Dear student:
You question was “do you feel that the requirements for efficiencies and economies of scale drive different behaviors in profit, not-for-profit and global companies, based on their customers’ expectations?” Yes. Economies of scale dictate the behaviors in each individual type of business.
Dear student:
I enjoyed assisting. The following will expand your knowledge of this subject and assist you in writing your own paper.
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1) Who are the internal and external customers for private, public, not-for-profit, global, and government organizations?
For Private businesses, the internal customers are the employees, the vendors and the company’s board and shareholders. The external customers are the client base, State and Local Government and the community.
For Not-for-Profit businesses, the internal customers are the employees, vendors and the Not-For-Profit’s Board. The external customers are those in need who the Not-For-Profit serves, donors and State and Local Government.
For Global Organizations, the internal customers are the employees, the vendors and the shareholders. The …
