1. The chapter examines how firms understand other firms as customers by learning how they rely on supplier networks, integrate purchasing with other functions, and make purchase decisions.
2. There are three main purchasing orientations - buying, procurement, and supply chain management - that have different priorities like reducing costs, improving quality, and building long-term supplier relationships.
3. Understanding a customer's purchasing orientation helps suppliers provide value. Purchasing also works closely with other functions and firms through cross-functional teams and activities that develop supply resources, improve existing offerings, and contribute to new product development.
1. The chapter examines how firms understand other firms as customers by learning how they rely on supplier networks, integrate purchasing with other functions, and make purchase decisions.
2. There are three main purchasing orientations - buying, procurement, and supply chain management - that have different priorities like reducing costs, improving quality, and building long-term supplier relationships.
3. Understanding a customer's purchasing orientation helps suppliers provide value. Purchasing also works closely with other functions and firms through cross-functional teams and activities that develop supply resources, improve existing offerings, and contribute to new product development.