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Purchasing - January 15, 2009

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Taxes, working-capital concerns bring purchasing and finance closer together

Like the phoenix rising from the ashes, financial supply chain management is taking on new life as the economy cools. And as it does, procurement and finance are working closer together. The following story is true. We are withholding the names of the buyer and supplier to avoid embarrassing them. A capital-equipment manufacturer that was diligent about auditing suppliers on a number of criteria found a weak link in the supply base. The weak link was a sole-source supplier of a critical component.



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