Fiscal Deficits And Government Debts - 3391 Words

Fiscal deficits and Government Debts. The growth of government debt can have disastrous consequences for an economy in the long-run. How can one explain these occurrences and how, if at all, can they be stopped or prevented? When federal revenues and government spending are equal in a given fiscal year, then the government has a balanced budget. When the revenues are greater than spending, the result is a surplus. But if government spending is greater than tax collections, the result is a deficit. The federal government then must borrow money to fund its deficit spending. Debt and deficits are considered by some to be a major economic problem, indeed one that threatens the stability of the US economy with serious, possibly†¦show more content†¦As mentioned above, one of the purpose for this research is finding what led to an accumulation of deficit that turned into a huge national debt. The U.S. national debt will be defined as the sum of all outstanding debt owed by the Federal Government. Despite the United States having the largest debt burden in the world, I will keep in account that there were some precipitating events which contributed greatly. If you observe around the globe, there is not a powerful state that can be run without an efficient economic system. The economic effectiveness of a country usually determine its power around the world. Despite the effectiveness of the economic system, some government still have to borrow money to completely satisfy its country’s needs. The borrowing usually starts as a deficit and accumulate to bigger debts. The growth of government debt will have disastrous consequences for an economy in the long run. A prolonged crisis could hurt economic growth significantly. And a default on the debt would almost certainly create big disruptions in the financial markets. It is hypothesized that the government have reached its debt ceiling and that will put the government into default and precipitate an acute fiscal crisis. It is predicted that the government s ability to finance its operations, like providing for the national defense or funding entitlements such as Medicare or Social Secu rity could potentially be

The First Few Years Of Young Children’S Lives Are Very

The first few years of young children’s lives are very critical to their overall development because new learning is happening every day, either during time spent with a teacher or parent. When children are four years old, they are with a teacher full time or part time. That teacher is a professional individual who plays an active role in children’s early childhood development and has a genuine desire to help them learn, grow and succeed in their education. These are just a few roles that early childhood educators play in the field of early childhood education, working with young children in their early childhood years of life. The requirements for becoming a teacher vary from state to state. In New York State, teachers must†¦show more content†¦That answer got me thinking. All of her answers gave me advice about how to be a great kindergarten teacher down the line. Standard one, promoting child development and learning, means that a teacher of young children must have an understanding of the characteristics and needs of young children as well as an understanding the many influences on young children (relationships with their families, their health, their learning styles, their opportunity to play) and use this understanding of children’s development and learning to create learning environments that are healthy, respectful, supportive, and challenging for all children. Standard two, building family and community relationships means that a teacher must understand the importance and complex characteristics of children’s families and communities. Teachers can then create respectful, reciprocal relationships that support families, and involve families in their children’s development and learning. Standard three is knowing how to observe, document, and assess in order to support young children and families. Teachers must understa nd the goals, benefits, and uses of assessment. They must also know how to use systematic observations, documentation, and other assessment strategies in a responsible way, for the purpose of positively influencing children’s development. Standard four is knowingShow MoreRelatedMusic Is All Around Us1468 Words   |  6 Pagesour mood, and certain kinds of music can temporarily boost specific kinds of intelligence. Listening to our favourite music can even help us tolerate high levels of pain. What do we know about how young children engage with music? There has been quite a lot of research looking at the very early years. We know that babies can remember music from even before birth. 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The use of electronic devices has changed the life of children/adolescent and have exposed them to a volatile and irreparable outcome, in their social interaction with peers and family, self-perception, behavior and sleep pattern. 2) It is now aRead MoreBorn Into Brothels Rhetorical Analysis1019 Words   |  5 Pagesunknown. Zana Briski journeys to Calcutta to photograph the lives of the prostitutes, and she ends up teaching their children about cameras and photography. Briski finds that the kids have true potential, not only in their photography but in their lives. She tries as hard as she can to find better futures for them. Born into Brothels tells this story. 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The Secret Circle The Initiation Chapter Four Free Essays

Her mother was still talking in that falsely bright way, but Cassie could only hear snatches of the words. â€Å"†¦ original wing actually Prerevolutionary, one-and-a-half stories†¦ front wing is Postrevolutionary Georgian†¦Ã¢â‚¬  It went on and on. Cassie clawed open the car door, getting an unobstructed view of the house at last. We will write a custom essay sample on The Secret Circle: The Initiation Chapter Four or any similar topic only for you Order Now The more she saw of it, the worse it looked. Her mother was saying something about a transom over the front door, her voice rapid and breathless. â€Å"†¦ rectangular, not like the arched fanlights that came later – â€Å" â€Å"I hate it!† Cassie cried, interrupting, her voice too loud in the quiet air, startlingly loud. She didn’t mean the transom, whatever a transom was. â€Å"I hate it!† she cried again passionately. There was silence from her mother behind her, but Cassie didn’t turn to look; she was staring at the house, at the rows of unwashed windows and the sagging eaves and the sheer monstrous bulk and flatness and horribleness of it, and she was shaking. â€Å"It’s the ugliest thing I’ve ever seen, and I hate it. I want to go home. I want to go home!† She turned to see her mother’s white face and stricken eyes, and burst into tears. â€Å"Oh, Cassie.† Mrs. Blake reached across the vinyl top of the car toward her. â€Å"Cassie, sweetheart.† There were tears in her own eyes, and when she looked up at the house, Cassie was astounded at her expression. It was a look of hatred and fear as great as anything Cassie felt. â€Å"Cassie, sweetheart, listen to me,† she said. â€Å"If you really don’t want to stay – â€Å" She stopped. Cassie was still crying, but she heard the noise behind her. Turning, she saw that the door to the house had opened. An old woman with gray hair was standing in the doorway, leaning on a cane. Cassie turned back. â€Å"Mom?† she said pleadingly. But her mother was gazing at the door. And slowly, a look of dull resignation settled over her. When she turned to Cassie, the brittle, falsely cheery tone was back in her voice. â€Å"That’s your grandmother, dear,† she said. â€Å"Let’s not keep her waiting.† â€Å"Mom†¦Ã¢â‚¬  Cassie whispered. It was a despairing entreaty. But her mother’s eyes had gone blank, opaque. â€Å"Come on, Cassie,† she said. Cassie had the wild idea of throwing herself into the car, locking herself in, until someone came to rescue her. But then the same heavy exhaustion that had descended over her mother seemed to wrap around her as well. They were here. There was nothing to be done about it. She pushed the car door shut and silently followed her mother to the house. The woman standing in the doorway was ancient. Old enough to be her great-grandmother, at least. Cassie tried to detect some resemblance to her mother, but she could find none. â€Å"Cassie, this is your Grandma Howard.† Cassie managed to mutter something. The old woman with the cane stepped forward, fixing her deep-set eyes on Cassie’s face. In that instant a bizarre thought flashed into Cassie’s mind: She’s going to put me in the oven. But then she felt arms around her, a surprisingly firm hug. Mechanically she lifted her own arms in a gesture of response. Her grandmother pulled back to look at her. â€Å"Cassie! At last. After all these years.† To Cassie’s discomfiture she went on looking, staring at Cassie with what seemed like a mixture of fierce worry and anxious hope. â€Å"At last,† she whispered again, as if speaking to herself. â€Å"It’s good to see you, Mother,† Cassie’s mother said then, quiet and formal, and the fierce old eyes turned away from Cassie. â€Å"Alexandra. Oh, my dear, it’s been too long.† The two women embraced, but an indefinable air of tension remained between them. â€Å"But we’re all standing here outside. Come in, come in, both of you,† her grandmother said, wiping her eyes. â€Å"I’m afraid the old place is rather shabby, but I’ve picked the best of the rooms for you. Let’s take Cassie to hers.† In the fading red light of the sunset the interior seemed cavernous and dark. And everything did look shabby, from the worn upholstery on the chairs to the faded oriental carpet on the pine-board floors. They went up a flight of stairs – slowly, with Cassie’s grandmother leaning on the banister – and down a long passage. The boards creaked under Cassie’s Reeboks and the lamps high on the walls flickered uneasily as they passed. One of us ought to be holding a candelabra, Cassie thought. Any minute now she expected to see Lurch or Cousin It coming down the hall toward them. â€Å"These lamps – it’s your grandfather’s wiring,† her grandmother apologized. â€Å"He insisted on doing so much of it himself. Here’s your room, Cassie. I hope you like pink.† Cassie felt her eyes widen as her grandmother opened the door. It was like a bedroom setting in a museum. There was a four-poster bed with hangings cascading from the head and foot and a canopy, all made of the same dusty-rose flowered fabric. There were chairs with high carved backs upholstered in a matching rose damask. On a fireplace with a high mantel rested a pewter candlestick and a china clock, and there were several pieces of massive, richly glowing furniture. The whole thing was beautiful, but so grand†¦ â€Å"You can put your clothes here – this chest is solid mahogany,† Cassie’s grandmother was saying. â€Å"The design is called bombe, and it was made right here in Massachusetts – this is the only area in all the colonies that produced it.† The colonies? Cassie thought wildly, staring at the decorative scroll top of the chest. â€Å"And this is your dressing table and your wardrobe†¦ Have you looked out the windows? I thought you might like a corner room because you can see both south and east.† Cassie looked. Through one window she could see the road. The other faced the ocean. Just now it was a sullen lead gray under the darkening sky, exactly matching Cassie’s mood. â€Å"I’ll leave you here to get settled in,† Cassie’s grandmother said. â€Å"Alexandra, I’ve given you the green room at the opposite end of the hallway†¦Ã¢â‚¬  Cassie’s mother gave her shoulder a quick, almost timid squeeze. And then Cassie was alone. Alone with the massive ruddy furniture and the cold fireplace and the heavy draperies. She sat gingerly on a chair because she was afraid of the bed. She thought about her bedroom at home, with her white pressed-wood furniture and her Phantom of the Opera posters and the new CD player she’d bought with her baby-sitting money. She’d painted the bookcase pale blue to show off her unicorn collection. She collected every kind of unicorn there was – stuffed, blown glass, ceramic, pewter. Back home, Clover had said once that Cassie was like a unicorn herself: blue eyed, shy, and different from everyone else. All that seemed to belong to a former life now. She didn’t know how long she sat there, but sometime later she found the piece of chalcedony in her hand. She must have taken it out of her pocket, and now she was clinging to it. If you’re ever in trouble or danger, she thought, and a wave of longing swept over her. It was followed by a wave of fury. Don’t be stupid, she told herself sharply. You’re not in danger. And no rock is going to help you. She had an impulse to throw it away, but instead she just rubbed it against her cheek, feeling the cool, jagged smoothness of the crystals. It made her remember his touch – how gentle it had been, the way it had pierced her to the soul. Daringly, she rubbed the crystal over her lips and felt a sudden throb from all the places on her skin he had touched. The hand he had held – she could still feel his fingers printed on her palm. Her wrist – she felt the light brush of cool fingertips raising the hairs there. And the back of it†¦ She shut her eyes and her breath caught as she remembered that kiss. What would it have felt like, she wondered, if his lips had touched where the crystal touched now? She let her head fall back , drawing the cool stone from her own lips down her throat to rest in the hollow where her pulse beat. She could almost feel him kissing her, as no boy ever had; she could almost imagine that it really was his lips there. I would let you, she thought, even though I wouldn’t let anyone else†¦ I would trust you†¦ But he’d left her. Suddenly, with a shock, she remembered that. He’d left her and gone away, just as the other most important man in Cassie’s life had. Cassie seldom thought about her father. She seldom allowed herself to. He’d gone away when she was only a little girl, left her mother and her alone to take care of themselves. Cassie’s mother told people he had died, but to Cassie she admitted the truth: he’d simply left. Maybe he was dead by now, or maybe he was somewhere else, with another family, another daughter. She and her mother would never know. And although her mother never spoke about him unless someone asked, Cassie knew that he’d broken her mother’s heart. Men always leave, Cassie thought, her throat aching. They both left me. And now I’m alone†¦ here. If only I had somebody else to talk to†¦ a sister, somebody†¦ Eyes still shut, she let the hand with the crystal trail down and fall into her lap. She was so exhausted with emotion that she couldn’t even get up to go to the bed. She simply sat there, drifting in the lonely dimness until her breathing slowed and she fell asleep. That night Cassie had a dream – or perhaps it wasn’t a dream. She dreamed that her mother and grandmother came into the room, moving noiselessly, almost gliding over the floor. In her dream she was aware of them, but she couldn’t move as they lifted her from the chair and undressed her and put her to bed. Then they stood over the bed, looking down at her. Her mother’s eyes were strange and dark and unfathomable. â€Å"Little Cassie,† her grandmother said with a sigh. â€Å"At last. But what a pity – â€Å" â€Å"Sh!† her mother said sharply. â€Å"She’ll wake up.† Her grandmother sighed again. â€Å"But you can see that it’s the only way†¦Ã¢â‚¬  â€Å"Yes,† her mother said, her voice empty and resigned. â€Å"I can see that you can’t escape destiny. I shouldn’t have tried.† That’s just what I thought, Cassie realized as the dream faded. You can’t escape destiny. Vaguely she could see her mother and grandmother moving toward the door, and she could hear the whisper of their voices. She couldn’t make out any words, though, until one sibilant hiss came through. â€Å"†¦ sacrifice . . .† She wasn’t sure which of the women had said it, but it echoed over and over in her mind. Even as darkness covered her, she kept hearing it. Sacrifice†¦ sacrifice†¦ sacrifice†¦ It was morning. She was lying in the four-poster bed and sunlight was streaming in the eastern window. It made the pink room look like a rose petal held up to the light. Sort of warm and shining. Somewhere outside a bird was singing. Cassie sat up. She had a confused memory of some kind of a dream, but it was dim and vague. Her nose was stuffed up – probably from crying – and she felt a little lightheaded but not really bad. She felt the way you do after being very sick or very upset and then getting some deep, restful sleep: strangely spacey and peaceful. The quiet after the storm. She got dressed. Just as she was about to leave the room, she noticed the chalcedony lucky piece on the floor and slipped it in her pocket. No one else seemed to be awake. Even in the daytime the long passage was dark and cool, lit only by the windows at opposite ends. Cassie found herself shivering as she walked down the hall, and the dim bulbs of the wall lamps flickered as if in sympathy. Downstairs was lighter. But there were so many rooms that when she tried to explore, she quickly got lost. Finally, she ended up in the front hallway and decided to go outside. She wasn’t even thinking about why – she guessed she wanted to see the neighborhood. Her steps took her down the long, narrow country road, past house after house. It was so early, no one else was outside. And eventually she ended up at the pretty yellow house with the towers. High in one tower, the window was sparkling. Cassie was staring at it, wondering why, when she noticed motion in a ground-floor window much closer to her. It was a library or study, and standing inside was a girl. The girl was tall and slender, with an incredibly long cascade of hair that obscured her face as she bent over something on the desk in front of the window. That hair – Cassie couldn’t take her eyes off it. It was like moonlight and sunlight woven together – and it was natural. No dark roots. Cassie had never seen anything so beautiful. They were so close – Cassie standing just behind the neat hedge outside the window, and the girl standing just inside, facing her, but looking down. Cassie watched, fascinated, at what the girl was doing at the desk. The girl’s hands moved gracefully, grinding something up with a mortar and pestle. Spices? Whatever it was, the girl’s movements were quick and deft and her hands slender and pretty. And Cassie had the oddest feeling†¦ If the girl would only look up, she thought. Just look outside her own window. Once she did, then†¦ something would happen. Cassie didn’t know what, but her skin had broken out in gooseflesh. She had such a sense of connection, of†¦ kinship. If the girl would just look up†¦ Yell. Throw a stone at the window. Cassie was actually looking for a stone when she saw movement again. The girl with the shining hair was turning, as if responding to someone inside the house calling her. Cassie had a glimpse of a lovely, dewy face – but only for the briefest instant. Then the girl had turned and was hurrying away, hair flying like silk behind her. Cassie let out her breath. It would have been stupid anyway, she told herself as she walked back home. Fine way to introduce yourself to your neighbors – throwing rocks at them. But the sense of crushing disappointment remained. She felt that somehow she’d never have another chance – she’d never get up the courage to introduce herself to that girl. Anyone that beautiful undoubtedly had plenty of friends without Cassie. Undoubtedly went with a crowd far beyond Cassie’s orbit. Her grandmother’s flat, square house looked even worse after the sunny Victorian one. Disconsolately, Cassie drifted over to the bluff, to look down at the ocean. Blue. A color so intense she didn’t know how to describe it. She watched the water washing around a dark rock and felt a queer thrill. The wind blew her hair back, and she stared out at the morning sun glittering on the waves. She felt†¦ kinship again. As if something were speaking to her blood, to something deep inside her. What was it about this place – about that girl? She felt she could almost grasp it†¦ â€Å"Cassie!† Startled, Cassie looked around. Her grandmother was calling from the doorway of the old wing of the house. â€Å"Are you all right? For heaven’s sake, get away from the edge!† Cassie looked down and immediately felt a wave of vertigo. Her toes were almost off the bluff. â€Å"I didn’t realize I was that close,† she said, stepping back. Her grandmother stared at her, then nodded. â€Å"Well, come away now and I’ll get you some breakfast,† she said. â€Å"Do you like pancakes?† Feeling a little shy, Cassie nodded. She had some vague memory about a dream that made her uncomfortable, but she definitely felt better this morning than she had yesterday. She followed her grandmother through the door, which was much thicker and heavier than a modern one. â€Å"The front door of the original house,† her grandmother explained. She didn’t seem to be having much trouble with her leg today, Cassie noticed. â€Å"Strange to have it lead directly into the kitchen, isn’t it? But that was how they did things in those days. Sit down, why don’t you, while I make the pancakes.† But Cassie was staring in amazement. The kitchen was like no kitchen she’d ever seen before. There was a gas range and a refrigerator – even a microwave shoved back on a wooden counter – but the rest of it was like something out of a movie set. Dominating the room was an enormous open fireplace as big as a walk-in closet, and although there was no fire now, the thick layer of ashes at the bottom showed that it was sometimes used. Inside, an iron pot hung on an iron crossbar. Over the fireplace were sprays of dried flowers and plants, which gave off a pleasant fragrance. And as for the woman in front of the hearth†¦ Grandmothers were supposed to be pink and cozy, with soft laps and large checking accounts. This woman looked stooped and coarse, with her grizzled hair and the prominent mole on her cheek. Cassie kept half expecting her to go over to the iron pot and stir it while muttering, â€Å"Double, double, toil and trouble†¦Ã¢â‚¬  Immediately after she thought this, she felt ashamed. That’s your grandmother, she told herself fiercely. Your only living relative besides your mother. It’s not her fault she’s old and ugly. So don’t just sit here. Say something nice. â€Å"Oh, thanks,† she said, as her grandmother placed a plate of steaming pancakes in front of her. Then she added, â€Å"Uh, are those dried flowers over the fireplace? They smell good.† â€Å"Lavender and hyssop,† her grandmother said. â€Å"When you’re done eating, I’ll show you my garden, if you like.† â€Å"I’d love it,† Cassie said, truthfully. But when her grandmother led her outside after she’d finished eating, the scene was far different than Cassie had expected. There were some flowers, but for the most part the â€Å"garden† just looked like weeds and bushes – row after row of overgrown, uncared-for weeds and bushes. â€Å"Oh – how nice,† Cassie said. Maybe the old lady was senile after all. â€Å"What unusual – plants.† Her grandmother shot her a shrewd, amused glance. â€Å"They’re herbs,† she said. â€Å"Here, this is lemon balm. Smell.† Cassie took the heart-shaped leaf, wrinkled like a mint leaf but a little bigger, and sniffed. It had the scent of freshly peeled lemon. â€Å"That is nice,† she said, surprised. â€Å"And this is French sorrel – taste.† Cassie gingerly took the small, rounded leaf and nibbled at the end. The taste was sharp and refreshing. â€Å"It’s good – like sour grass!† she said, looking up at her grandmother, who smiled. â€Å"What are those?† Cassie said, nibbling again as she pointed to some bright yellow buttons of flowers. â€Å"That’s tansy. The ones that look like white daisies are feverfew. Feverfew leaves are good in salads.† Cassie was intrigued. â€Å"What about those?† She pointed to some creamy white flowers that twined up other bushes. â€Å"Honeysuckle. I keep it just because it smells good. The bees love it, and the butterflies. In spring it’s like Grand Central Station around here.† Cassie reached out to snap off a fragrant stem of delicate flower buds, then stopped. â€Å"Could I – I thought I’d take some up for my room. If you don’t mind, I mean.† â€Å"Oh, good heavens, take as many as you want. That’s what they’re here for.† She’s not really old and ugly at all, Cassie thought, snapping off stems of the creamy flowers. She’s just – different. Different doesn’t necessarily mean bad. â€Å"Thanks – Grandma,† she said as they went back into the house. Then she opened her mouth again, to ask about the yellow house, and who lived there. But her grandmother was picking up something from beside the microwave. â€Å"Here, Cassie. This came in the mail for you yesterday.† She handed Cassie two booklets bound in construction paper, one red and one white. New Salem High School Student and Parent Handbook, one read. The other read, New Salem High School Program of Studies. Oh, my God, Cassie thought. School. New hallways, new lockers, new classrooms, new faces. There was a slip of paper between the booklets, with Schedule of Classes printed boldly at the top. And under that, her name, with her address listed as Number Twelve Crowhaven Road, New Salem. Her grandmother might not be as bad as she’d thought; even the house might turn out to be not so awful. But what about school? How could she ever face school here in New Salem? How to cite The Secret Circle: The Initiation Chapter Four, Essay examples

Purchasing and Supply Chain Management free essay sample

In no more than 2,500 words, using a structured essay format, explain how the need for firms to recognize supply chain management as a philosophy and a source of competitive advantage has led to significant changes in the purchasing role amongst public and private sector organisations. INTRODUCTION One of the fundamental questions facing modern organisations is how to achieve and sustain competitive advantage (Rumelt et al 1994) within an increasingly fast moving environment. Supply Chain Management (SCM) is critical element of model business strategy and globalisation trends where Organisations can create significant competitive advantage. SCM has many definitions but is essence is ‘the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole’ (Christopher, 2005). Therefore the knowledge and understanding of the various processes involved in SCM are critical in the efficient controlling the supply chain (Davis, 2010). The purchasing process within SCM has thus become a central part with a role â€Å"to purchase the RIGHT QUALITY of material, at the RIGHT TIME, in the RIGHT QUANTITY, from the RIGHT SOURCE, at the RIGHT PRICE† (Baily, Farmer, Jessop and Jones, 2005) This paper discusses the evolution of SCM, why it had become central to competitive advantage and the developments it has forced on the role of purchasing. Quinn et al (1990 p79) state that organisations, â€Å"need to ask, activity by activity, are we really competitive with the world’s best here? † Quinn (1992) and Quinn and Hilmer (1994) continue the theory by arguing that activities in the organisations supply chain can be described as services. Each service can be examined from a customer’s perspective to ensure that the organisation knows how to perform better than anyone in the world. If it cannot perform to this high standard then it should be outsourced. Porter (1985) reinforces this view by stating that concentration by each organisation in the supply chain on its distinctive capabilities allows the development of better value added services and products. Key Principles within Supply Chain Management (SCM) Philosophies Supply Chain Management is defined by Lambert et al (1998, p. 1) as â€Å"the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. . Although SCM is a widely accepted term, there is no definitively recognised description of SCM or its activities. Theoretically SCM can be seen as all the value adding activities through the supply chain, from the production of raw materials to the delivery of the product to the end consumer (Wisner and Tan, 2000). SCM philosophy can be further explained the internally focused concept, by incorporating multiple organisations among the SC in order to achieve ef ficiency and end customer satisfaction (Harwick, 1997). Figure 1 shows vertical integrated flow of a generic supply chain demonstrating the cross functional movement of a product towards the end consumer but also the upstream capabilities. [pic] (Lynch, 2012) Organizations in the 1950’s were very self orientated with the view of developing everything themselves in a mass production philosophy, of producing lots of products in order to ascertain low costs and then distributing to dealers and retailers. This meant that large inventories were needed in order to acquire their desired profit margins and maintain mass production (Origin of SCM). The 1970’s brought the ideal of reducing and managing inventories more effectively using systems such as material requirement planning and manufacturing resource planning, in order to deal with the financial crash and the increase in competition at the time (Origin of SCM). The 1980’s marked an exponential growth in SCM (Georgia Tech, 2012), giving way for new supply methodologies such as ‘just in time’ and ‘total quality management, with the focus of creating low cost, high quality products and customer satisfaction. The introduction of growth to IT was also prevalent, giving organizations an overview of the product cycle Origin of (SCM). Globalization has brought much more competition within the past decade, which has led organizations to create cooperative, mutually beneficial partnerships with suppliers, distributors, retailers and other firms within the SC (Wisner and Tan, 2000). This aided the flexibility of the JIT and TQM manufacturing systems, where there is little inventory to backup increased demand. (Lynch, 2012)[pic] Procurement and purchasing has therefore been required to develop as shown in above on an accelerated path from the 1980’s (cost and linear) to current trends (capability and strategic lean relationships). The main changes are shown in the table beside (Lysons and Farrington, 2006) PURCHASING MODELS Porter (1985) supports the SCM strategic direction where concentration by each organisation in the supply chain (on its distinctive capabilities) allows the development of better value added services and products. He continues that within such value chain there are primary and support activities which are carried out, with procurement being labelled as a support activity, eg it delivers a service which supports inputs within an organizations value chain. Davis (2010) conversely argues that Purchasing should be more considered as a proficient tool within the supply chain and key to an organisations realisation of the value chain. Despite evidence of purchasing existing in Egyptian times (Lysons and Gillingham, 2003, p. 9), it was only within the late 20th century that the significance of cost-effective purchasing became important (Giannakis and Croom, 2004) and even later as a strategic operational benefit. Figure 2 below helps chronologically walk through each forward step in the development of purchasing processes and models. Each of the models in figure 2 offers an explanation of how purchasing has developed (Davis, 2010) According to Davis, P (2010 p. 35). ‘These frameworks show that conceptually a theoretical base has been developed upon which research can be built for purchasing. Further he continues that frameworks offer a method for both assessing the stage of maturity of an organization’s purchasing function and how it could be further developed within such an organization’. Stage 1 across all of the models is predominantly seen as a simple transaction process which adds no value towards the organization. As figure 3 demonstrates this would be construed more as the linear purchasing approach. [pic] (Lynch, 2012) As you work down the development of procurement’s role it is only Reck and Long’s (1988) final stage that supports the initial view of Porter (1985) where fully developed purchasing is a supportive role. The other three models (Morris and Calantone, 1991; Stannack and Jones, 1996; Syson, 1992) emphasize purchasing as an ‘advanced, ‘proactive’ and ‘performance centered’ activity which is of strategic importance. Its function to mediate between external suppliers and internal organizational customers giving value to external customers (Novack and Simco, 1991, [cited in njazz J. Chen et al]) Ellram and Carr, (1994]) and Cooper and Ellram, (1993) takes this view of purchasing further stating that it has evolved from the notion of a supporting buying function to a much more ‘performance centered’ process and ascertaining a status of a ‘crucial strategic role’. Purchasing now performs strategic decision making during the corporate planning process (Cavinato, 1999) and thus has a significant cross-functional coalesce within Supply Chain processes. THE â€Å"MAKE OR BUY DECISION† Senior managers in the manufacturing industry have pushed the importance of the ‘make or buy decision’ within the business strategy (Probert, 1993. cited in Humphreys et al, 2002). Quinn et al (1990 p79) state that organisations, â€Å"need to ask, activity by activity, are we really competitive with the world’s best here? † Quinn (1992) and Quinn and Hilmer (1994) continue the theory by arguing that activities in the organisations supply chain can be described as services. Each service can be examined from a customer’s perspective to ensure that the organisation knows how to perform better than anyone in the world. If it cannot perform to this high standard then it should be outsourced. Often specialist suppliers can perform the outsourced activities at lower cost and will have higher value added than the buyer (Van Weele, 2004, p. 18 cited in Davis 2010). This view articulates the importance of procurement in effecting the supplier relationship. . Supplier Partnerships Milgrom and Roberts (1992) demonstrated how Japanese style systems introduced new implications for supply chain practice. Suppliers would offer their expertise to the organisation through extensive two-way flows of information and significant co-operation (Coulson 1998). These new concepts entailed, â€Å"close co-operation with suppliers to achieve the desired level of quality and delivery, and to implement design for manufacture† (Levy 1997 p95). It called into question traditional price based contracts and suggested a need for longer-term relationships based on trust, flexibility, innovation and quality. These changes in supplier relationships are emphasized in Table 4, which is adapted from the WebPages of iPower Distribution Group (a subsidiary of Parker Hannifin Corporation). The implications for procurement is that new suppliers need to listen, be proactive, and have knowledgeable sales, production, research and development teams that can work with organisations to strengthen the entire purchasing chain’s market position (Fitzgerald 1998). Chen et al (2004) shows these relationships in Figure 3 [pic] (Davis 2010) Supply Chain and the production process Strategic purchasing is implemented within the ‘Lean’ production system in order to eliminate waste with strong emphasis on supplier relationship. Manrodt (2008) defines lean as â€Å"a systematic approach to enhancing value to the customer by identifying and eliminating waste (of time, effort and materials) through continuous improvement, by flowing the product at the pull of the customer, in pursuit of perfection†. As such lean production philosophy was a further movement away from the traditional push supply chain process. The lean production method focuses on llowing there to be flexibility within the Supply Chain, with customers being allowed to pull from the Supply Chain. This means that organizations are focusing on the whole of the value stream, looking at the product from production to consumption (McIvor, 2001). Figure 4 (Erdogen and Sezen, 2009) shows the different Pull and Push Supply Chains. Amongst the lean production system sits other production protocols. Harrison (1992) and Flynn et al (1995) supported the combination of the ‘just in time protocol and the ‘total quality management’ protocol to produce efficient manufacturing. [pic] (Erdogen and Sezen 2009) Lean supply is thus reliant on purchasing/supplier partnerships as it is unable to exist unless a close, transparent and mutual relationship has been constructed (Lamming 1993, [cited in Humphreys, 2001) Tesco displayed the importance of this when lean production method was put in place with its cola supplier in 1996, where the level of service was at 98. 5% compared to its 99. 5% in 2005 after the changes had been made (Erdogen and Sezen 2009). There were 5 storage between bottler and customer in 1996, after lean production systems were employed this had changed to 2 in 2005 (Erdogen and Sezen 2009). This allowed Tesco to create the highest availability with the lowest stock. Case Study Toyota Toyota Motor Coporation is one of the leading car manufacturers in the USA with a market share of 13. 9% (shown in pie chart)(Cain, 2012) Toyota created the ‘Lean’ production system to counteract the traditional western ‘mass’ production strategy (Holweg, 2007). The obsession with lean production systems is key to their Supply chain success and has revolutionized industry (Kleiner). Toyota practices its supply chain management with a limited number of suppliers, with around 300 near its home base in Japan which they foster close communication with (Jones and Clarke, 2002). They function by using their just-in-time method as required by assembly, which are collected every 2 to 4 hours via a milk run. Toyota’s suppliers delivery a high level of quality, with 99. 9995 per cent of parts delivered without deficiencies and on time (Jones and Clarke, 2002). This makes a dramatic difference especially when Toyota are producing 13,000 cars per day (Toyota, 2010). Toyota looks to manage their entire value stream for each of their products, in contrast to segmenting these products to optimize their own activities and compete against others upstream and downstream (Jones and Clarke, 2002). Toyota aim to use their ‘pull’ supply chain to move parts through the value stream, in order to reach demand when required(Jones and Clarke, 2002). Compared with two other leading manufacturers (Ford and Chrysler) Toyota was found to be the most productive when measured for hours required for assembly (Toresco, 2006). Toyota measured at 27. hours against Ford 37 hours and Chrysler 35. 9. Conclusion Tidd et al (1997) note that in responding to rapidly developing markets and changing environments, organisations are forced to innovate. Current SCM across the value chain is about new agile organisations focused on gaining competitive advantage through better quality, lower costs and a quicker time from order to customer. This paper has explored how su ch innovation and new organizations are concentrating on supplier partnerships to extract the maximum return from their capabilities (Teece et al 1997). Abbott et al (2006) defines the modern lean Supply Chain as a set of organizations directly linked by upstream and downstream flows of products, services, finances and information that collaboratively work to reduce cost and waste by efficiently and effectively pulling what is needed to meet the needs of the individual customer. Thus SCM strategies are an integral part of the organizations architecture and planning process, where supplier partners are expected to make significant contributions in cost efficiencies, time and quality improvements, logistics, planning, development of new products, services and organizational knowledge. The role o purchasing and supplier partnerships (as part of such SCM strategy) in the ever-growing globally competitive market, are of increasing importance. For purchasing partnerships to add value and create competitive advantage they must be strategically managed with the required due diligence. Purchasing has needed to move from a monolithic linear supporting role to a critical strategic management role of supplier integration into the organisation, its structure and its future strategic plans. This can easily be summerised through the following quotes: FROM to purchase the RIGHT QUALITY of material, at the RIGHT TIME, in the RIGHT QUANTITY, from the RIGHT SOURCE, at the RIGHT PRICE† (Baily, Farmer, Jessop and Jones, 2005) THROUGH â€Å"The main issue facing managers is no longer about ‘buying the right products at the right time at the right price, but of handling and developing relationships with key suppliers over longer periods† (Lysons, 2006) and, is now concerned with â€Å"Key challenges for 2011 include developing system tools to release resources and increase efficiency, unleashing procurement’s innovative side and encouraging ateral thinking†.