INDEPENDENT Distributor/Sourcing/Purchasing
Companies operating in today’s markets are, whether voluntarily or not, are dependent on purchasing and distribution to progress in their chosen field. It is often the case however, that many businesses cannot warrant the substantial costs involved in setting up their own network of distributors or time involved in sourcing a new component. Even if a forward-looking company establishes it’s own Purchasing and distribution capability the associated cost of having this capability are only just beginning. If there is a market downturn then the substantial costs in maintaining an inactive Purchasing capability become a burden to the business. Shedding the ‘Intellectual Assets’ of the purchasing and distribution capability provide a short-term solution. When the market recovers however it is almost impossible to replace the ‘Intellectual Assets’ in a timely fashion, and this leads to the situation where a company cannot respond to market Forces