FIFTY PERCENT OF MOST PRODUCT COSTS ARE IN THE COST OF THE MATERIALS USED IN THE MANUFACTURE OF THE PRODUCT. THE BEST PLACE TO MAINTAIN THE COMPETITIVE ADVANTAGE IS BY HONING THE LEADING EDGE NEEDED TO MAINTAIN PURCHASING FUNCTION OR REDUCE THE LARGEST PART OF A PRODUCTS COST. DAILY PURCHASING DECISIONS AFFECT THE FUTURE OF AN ORGANIZATION NOT ONLY FROM THE UNIT PRICE BUT ALSO FROM THE AMOUNT OF ON-HAND INVENTORY AND THE AMOUNT ON ORDER. MAKING THE RIGHT DECISIONS AND DEALING WITH THE RIGHT SUPPLIERS WHILE KEEPING UP WITH ORGANIZATIONAL ACTIVITY CLEARLY PLACES THE PURCHASING DEPARTMENT ON THE LEADING EDGE OF MAINTAINING THE COMPETITIVE ADVANTAGE.
