Value Chains, Outsourcing and Procurement

Take two aspects of procurement and supplier management covered in the module and explain how their effective management by buying organisation managers can contribute to value for money outcomes from suppliers. Illustrate your answers with case and/or other evidence. 50% for each aspect.
Please note:
-Value for money is understood in terms of the surplus value model introduced in the module.
-The aspects of procurement and supplier management covered in the module are: internal organizational buying behaviour; supplier selection criteria; global sourcing risk management; negotiation with a supplier; the development of a contract with a supplier; and the management of a supplier during the contract period.
-Bear in mind the effectiveness of management practice is not the only factor affecting value for money outcomes. Thus, the phrasing effective management ‘can contribute’.