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The chief function of your business is to make profit. This is largely affected by the inputs (direct and indirect materials) that your business requires which means that your purchasing portfolio has to be on point, less the results be reflected in your income statement. The questions that procurement managers need to concern themselves with given the importance of purchasing to the company’s bottom line include: 1. How can a company guard itself against supply interruptions? 2. What about economic changes resulting from ever changing technologies? In 1983 peter kraljic, through his post in Harvard business review, presented a model that aimed at making the purchasing function of an organization to be strategic and get answers to the above questions. The way the kraljic model works can be seen through four steps a) Purchasing classification b) Market analysis c) Strategic positioning d) Action planning Porters model: • PORTER'S five forces PRACTICAL EXAMPLE MY COURSES SALE OF GOODS CONTRACTS AND AGREEMENT TO SELL: https://www.udemy.com/sales-of-goods-... INCOTERMS: https://www.udemy.com/incotermstransp... NEGOTIATING AND CONTRACTING: https://www.udemy.com/negotiatingandc... CONTRACT LAW (Business Obligations): https://www.udemy.com/contractlaw/ PRODUCT LIABILITY: https://www.udemy.com/productliabilit... SKILLSHARE: https://www.skillshare.com/r/profile/... ……………………………………………………….. WEBSITE http://www.zeritenetwork.com Music: http://www.bensound.com ……………………………………………………….. SUPPORT THE CHANNEL PATREON: / zeritenetwork ……………………………………………………….. CONNECT WITH ME IN SOCIAL MEDIA Facebook: / zeritenetwork Linkedin: / mosesmanuel ……………………………………………………….. Thank you for watching this video—Please Share it and tell me what you think in the comment section and one more thing… Subscribe to My Channel: / zeritenetwork #ZeriteNetwork #Procurement #Business