Chapter 21Changes and Trends—2000sSlide 3Changes and Trends -2000sSupply Chain Changes and Trends -2000s1Chapter 21Purchasing Changes and TrendsIDIS 424Spring 20042Changes and Trends—2000sContinued Increase in long-term contractingContinued growth in worldwide sourcingContinued increase in purchase volume accumulationExpect to focus extensively on time as a competitive weapon, particularly during new product/process/service development3Changes and Trends—2000sA gradual decrease in the number of purchasing groups organized by commodity will continue to occur while the number of groups organized by finished product or a hybrid structure will increaseCompanies will continue to develop formalized systems for measuring supplier performance Executive perception of purchasing and supplier importance will continue to increase4Changes and Trends -2000sContinued supply base reductionContinued increase in the measurement of purchasing/supply management’s contribution and performanceFirms will continue to outsource activities or purchase requirements that are not part of their core competencyExpect greater reliance on full service suppliers, including full service logistical suppliers5Supply Chain Changes and Trends -2000sExpect the development of collaborative relationships with select suppliersExpect a growing separation between tactical and strategic purchasing