\u2026to understand why New Right of Purchasing\u00a0#19 is so important.<\/p>\n
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Hello again!\u00a0 Before I begin, let me take a step back in case you haven\u2019t been following along.<\/p>\n
Back in March, I decided to write a series of articles designed to update and replace the old, traditional \u201c5 Rights of Purchasing.\u201d\u00a0 Since the days when the original \u201c5 Rights\u201d became a household name, the scope of purchasing has expanded dramatically, so I developed the \u201c25 New Rights of Purchasing\u201d and wrote a series of articles, including this week\u2019s \u201cThe 25 New Rights of Purchasing, Part IV.\u201d<\/p>\n
Right #19 from this week\u2019s article is \u201cRight Reputation\u201d and, in the article, I wrote that \u201csuppliers with bad reputations negatively affect public perception of your organization.\u201d\u00a0 Whether you\u2019re looking at recent events, like the fatal collapse of a Bangladesh\u00a0garment factory that manufactured clothing destined for Walmart, or events in the distant past, like the federal case against the Arthur Andersen consulting firm for shredding evidence of an audit tied to the Enron accounting fraud scandal of 2001, it is clear that the public will judge organizations by the suppliers they choose when such suppliers became negative household names.<\/p>\n
Thus, an increasing amount of responsibility is placed on procurement departments to (1) ensure that suppliers with bad reputations are avoided in the sourcing process, and (2) ensure that suppliers act properly so that no reputation-damaging events occur in the future.\u00a0 Supplier reputation needs to be considered when selecting and monitoring the performance of suppliers and, as such, Right #19 has an inexorable place among the 25 New Rights.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u2026to understand why New Right of Purchasing\u00a0#19 is so important. […]<\/p>\n","protected":false},"author":12,"featured_media":4007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n