LETTER XVI.
SUPPLIES AND PURCHASES.
My Dear Boy:—Supplies and purchases are a feature of railroad operation illustrating the tendency to overcentralization through overspecialization. Please notice that I say supplies and purchases; not as some roads do, purchases and supplies. Is not “supply” the broader term, including “purchase” as a very important component? If we happen to make some of our supplies from our own scrap, a question of supply and accounts is involved, but not necessarily one of purchase. The volume of work involved in purchasing for a large railway may be so great as to warrant the segregation of the purchasing function.
Among the best purchasing bureaus in the United States are those of the Harriman Lines. As I understand it, their able director of purchases does not, as many people suppose, scrutinize all requisitions. Each of the eight vice-presidents and general managers has his
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