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What are the merit and demerits of proactive and reactive purchasing?
Wiki User
∙ 7y ago
Proactive purchasing involves planning ahead to anticipate needs and secure favorable terms, leading to better cost control and supplier relationships. However, it can be resource-intensive and may require forecasting accuracy. On the other hand, reactive purchasing is responsive to immediate needs but may result in higher costs, lower quality products, and strained supplier relationships due to rushed decisions and limited negotiating power.
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