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One of
the main questions for which this , otherwise simple
way of buying, is always under the scanner of
purchasing ethics is its undue ability to restrict
competition and fair play. One of the major role that
any purchaser plays for his firm is in cost reduction
arena which is attempted by generating competition
among the suppliers. This principle gets a jolt
through reciprocity in buying. However, when factors
such as quality, after sales service, price etc are
equal normally a buyer would like to buy from his
customer , if for nothing then at least for
having a good working relationship. However, the
distinct disadvantages of reciprocal buying outweigh
the limited and narrow advantage that a firm may
derive out of it. |