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History of Purchasing Evolution

The document summarizes the evolution of purchasing from 1830 to the present. Key developments include the emergence of specialized purchasing roles in railroads in the 1830-1900 period, the establishment of purchasing procedures and trade organizations in the 1900-1939 period, an increased focus on acquiring scarce materials during World War 2 in the 1940-1946 period, marketing overshadowing purchasing in the 1947-1965 period, the development of material management and competitive bidding approaches in the 1966-1970 period, the treatment of purchasing as a strategic function and the use of cross-functional teams in the 1971-1999 period, and an emphasis on supplier development, cooperation, and strategic integration since 2000.

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Inah Marie
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18 views8 pages

History of Purchasing Evolution

The document summarizes the evolution of purchasing from 1830 to the present. Key developments include the emergence of specialized purchasing roles in railroads in the 1830-1900 period, the establishment of purchasing procedures and trade organizations in the 1900-1939 period, an increased focus on acquiring scarce materials during World War 2 in the 1940-1946 period, marketing overshadowing purchasing in the 1947-1965 period, the development of material management and competitive bidding approaches in the 1966-1970 period, the treatment of purchasing as a strategic function and the use of cross-functional teams in the 1971-1999 period, and an emphasis on supplier development, cooperation, and strategic integration since 2000.

Uploaded by

Inah Marie
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Evolution of Purchasing

IDIS 424 Spring 2004

1830-1900
Charles Babbages book mentions a materials man Use of Selling Agents Railroads created a Supplying Depart.
Need for technical expertise Centralization Contributions to Profitabiity

1900-1939
Development of purchasing procedures and forms Development of material specifications Articles on purchasing appeared in trade journals National Association of Purchasing Agents established in 1934
3

1940-1946
Acquisition of needed and scarce materials Purchasing courses offered at universities

1947-1965
Marketing overshadowed purchasing Purchasing regarded as a negative function by most firms GE created a Purchasing Analysis Department in 1960 to analyze material prices

1966-1970
Concept of Material Management developed (total systems approach) Techniques of multiple sourcing and competitive bidding introduced

1971-1999
New technologies and increased global competition created the need for new approaches to purchasing A world view of purchasing developed Use of Purchasing Professionals Purchasing Managers became part of top management teams Development of cross-functional purchasing teams
7

2000 and Beyond


Emphasis on supplier development and supplier improvement Focus on cooperative rather than on adversarial approaches with suppliers Greater integration with other functions of the firm Greater emphasis on the big picture (Strategic Purchasing)
8

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