Final answer:
Purchasing and supply management, when working well within an organization, enables the company to acquire the best resources from around the world and compete on cost, quality, and innovation.
Step-by-step explanation:
When purchasing and supply management works well within an organization, it allows the company to acquire the best resources from around the world. This enables the company to compete on cost, quality, and innovation. For example, a company may be able to source raw materials from a supplier in a different country that offers higher quality or lower cost, resulting in a competitive advantage in the market.
Moreover, efficient purchasing and supply management can lead to better relationships with suppliers, ensuring a steady supply of materials and reducing the risk of disruptions in the supply chain. With reliable and efficient supply chains, companies can deliver products to customers on time, enhancing customer satisfaction and loyalty.
In summary, when purchasing and supply management is effective, it enables a company to access the best resources globally, allowing them to compete on multiple fronts including cost, quality, and innovation.