Describe and discuss the differences and relationships between purchasing, procurement, and strategic sourcing. Discuss the advantages and disadvantages of using e$-$commerce in the procurement process.

Purchasing, procurement, and strategic sourcing are all interrelated concepts, but there are distinct differences between them. Procurement is the transactional $$process$$ of identifying a need, selecting suppliers negotiating contracts, and management the purchasing of goods and services, while purchasing is the transactional $$act$$ of acquiring goods and services from a supplier. According to Ates et al $(2015),$ the supply structure for a company is based on several key characteristics to include number of suppliers, the degree of differentiation between suppliers, and the relationship between suppliers. Strategic sourcing provides an $$approach$$ or $$framework$$ within the procurement process that focuses on long$-$term supplier relationships and identifying best value, based on factors such as quality, innovation, and total ownership cost. Key characteristics for purchasing include a focus on the immediate act of acquiring, involves tasks such as purchase orders and invoices, and usually deals with established suppliers and known products. Key characteristics for procurement include a process driven act and aligns the procurement process with business needs. Key characteristics of strategic sourcing include a focus on optimized value for the company and involves analysis of market trends, supplier evaluation, and leveraging power $($Ates$,2015).$

Advantages of integrating e$-$commerce into the procurement process include increased efficiency, improved transparency, centralized platform, and faster supplier onboarding. Disadvantages of integrating e$-$commerce into the procurement process include technical challenges, security and change management issues, and limited supplier access.

Describe the differences between $(1)$ capacity planning and materials planning and $(2)$ push$-$based and pull$-$based production strategies.

Capacity planning focuses on production capacity to meet demand, while materials planning focuses on the procurement of raw materials required for production. Key considerations for capacity planning include labor force, equipment capacity, facility capacity, and sales volume.

A push$-$based strategy focuses on the production of goods based on analysis of forecasted demand, while a pull$-$based strategy focuses on the production of goods when a customer order is received. According to Bonney et al $(1999),$ there is a distinct difference between push$-$based and pull$-$based strategies, but considerations should be given for required stock levels, operational flexibility, and the cost$-$benefit of higher cost utilization rates.