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Purchasing
and Supply
Management
The McGraw-Hill Series in Operations and Decision Sciences

SUPPLY CHAIN MANAGEMENT BUSINESS FORECASTING BUSINESS MATH

Benton Keating and Wilson Slater and Wittry
Purchasing and Supply Chain Forecasting and Predictive Analytics Practical Business Math Procedures
Management Seventh Edition Thirteenth Edition
Third Edition Slater and Wittry
LINEAR STATISTICS AND
Bowersox, Closs, Cooper, and Bowersox Math for Business and Finance: An
REGRESSION
Supply Chain Logistics Management Algebraic Approach
Fifth Edition Kutner, Nachtsheim, and Neter Second Edition
Applied Linear Regression Models
Johnson
Fourth Edition BUSINESS STATISTICS
Purchasing and Supply Management
Sixteenth Edition BUSINESS SYSTEMS DYNAMICS Bowerman, O’Connell, Drougas,
Duckworth, and Froelich
Simchi-Levi, Kaminsky, and Simchi-Levi Sterman Business Statistics in Practice
Designing and Managing the Supply Business Dynamics: Systems Thinking Ninth Edition
Chain: Concepts, Strategies, Case and Modeling for a Complex World
Studies Doane and Seward
Third Edition OPERATIONS MANAGEMENT Applied Statistics in Business and
Cachon and Terwiesch Economics
PROJECT MANAGEMENT Operations Management Sixth Edition
Brown and Hyer Second Edition Lind, Marchal, and Wathen
Managing Projects: A Team-Based Cachon and Terwiesch Basic Statistics for Business and
Approach Matching Supply with Demand: Economics
Larson and Gray An Introduction to Operations Ninth Edition
Project Management: The Managerial Management Lind, Marchal, and Wathen
Process Fourth Edition Statistical Techniques in Business and
Seventh Edition Jacobs and Chase Economics
Seventeenth Edition
Operations and Supply Chain
SERVICE OPERATIONS Jaggia and Kelly
Management: The Core
MANAGEMENT Business Statistics: Communicating
Fifth Edition
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Service Management: Operations, Third Edition
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Strategy, Information Technology
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Operations Management in the Supply Second Edition
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Chain: Decisions and Cases McGuckian
Introduction to Management Science:
Seventh Edition Connect Master: Business Statistics
A Modeling and Case Studies
Approach with Spreadsheets Stevenson
Sixth Edition Operations Management
Thirteenth Edition
BUSINESS RESEARCH METHODS Swink, Melnyk, and Hartley
Schindler Managing Operations across the
Business Research Methods Supply Chain
Thirteenth Edition Fourth Edition
Purchasing and
Supply Management
Sixteenth Edition
P. Fraser Johnson, PhD
Leenders Supply Chain Management
Association Chair
Director, Ivey Purchasing Managers Index
Professor, Operations Management
Ivey Business School
Western University
PURCHASING AND SUPPLY MANAGEMENT, SIXTEENTH EDITION
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Library of Congress Cataloging-in-Publication Data

Names: Johnson, P. Fraser, author.
Title: Purchasing and supply management / P. Fraser Johnson, PhD.
Description: Sixteenth edition. | New York, NY: McGraw-Hill Education, [2019]
Identifiers: LCCN 2018021493 | ISBN 9781259957604 (alk. paper)
Subjects: LCSH: Industrial procurement. | Materials management.
Classification: LCC HD39.5.L43 2019 | DDC 658.7—dc23
LC record available at https://lccn.loc.gov/2018021493

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mheducation.com/highered

Purchasing and Supply

Management
 About the Authors
P. Fraser Johnson is the Leenders Supply Chain Management Association Chair at
the Ivey Business School, Western University. Professor Johnson is director of the Ivey
Purchasing Managers Index, the most widely watched and utilized indicator of future eco-
nomic activity in Canada. He was faculty director of the Ivey MBA program from 2009
to 2014. Dr. Johnson received his PhD in Operations Management from Ivey in 1995, and
following graduation, joined the Faculty of Commerce & Business Administration at the
University of British Columbia. He returned to Ivey as a faculty member in 1998, where
he currently teaches courses in supply chain management and operations. Prior to joining
Ivey, Professor Johnson worked in the automotive parts industry where he held a number
of senior management positions in finance and operations. His experience includes man-
aging automotive parts facilities in both Canada and the United States, and overseeing a
joint venture partnership in Mexico. Professor Johnson is an active researcher in the area of
supply chain management and he has authored articles that have been published in a wide
variety of journals and magazines. Fraser has also authored a number of teaching cases. He
is an associate editor for The Journal of Supply Chain Management and sits on the editorial
review board for the Journal of Purchasing and Supply Management. Professor Johnson
has worked with a number of private- and public-sector organizations in both consulting
and corporate education assignments in the United States, Canada, and Europe.

Purchasing and Supply

Management
Preface
Purchasing and supply management has become increasingly visible in a world where sup-
ply is a major determinant of corporate survival and success. Supply chain performance
influences not only operational and financial risks but also reputational risk. Extending the
supply chain globally into emerging regions places new responsibilities on the supplier and
supply, not only to monitor environmental, social, political, and security concerns, but also
to influence them. Thus, the job of the supply manager of today goes beyond the scope of
supply chain efficiency and value for money spent to search for competitive advantage in
the supply chain. Cost containment and improvement represent one challenge; the other
is revenue enhancement. Not only must the supply group contribute directly to both the
balance sheet and the income statement; it must also enhance the performance of other
members of the corporate team. Superior internal relationship and knowledge manage-
ment need to be matched on the exterior in the supply network to assure that the future
operational and strategic needs of the organization will be met by future markets. The joy
of purchasing and supply management lives in the magnitude of its challenges and the
opportunities to achieve magnificent contributions.
For more than 85 years, this text and its predecessors have championed the purchasing
and supply management cause. Based on the conviction that supply and suppliers have to
contribute effectively to organizational goals and strategies, this and previous editions have
focused on how to make that mission a reality.
A great deal has happened in the supply field since the fifteenth edition was pub-
lished. Continuing advances in information technology provide new ways to improve sup-
ply efficiency and effectiveness. New risk management, sustainability, and transparency
requirements, and the search for meaningful supply metrics, have further complicated the
challenges faced by supply managers all over the world. As a consequence, several changes
and updates have been made to the sixteenth edition. First, the new edition provides an
opportunity to incorporate the latest theory and best practice in supply chain management
into the text. Wherever appropriate, real-world examples and current research are used to
illustrate key points. Second, the application of information technology to supply chain
processes continues to change rapidly, including the evolution of cloud-based computing,
digitization, and blockchain. The text has been updated accordingly. Third, there are also
several important emerging issues—including sustainability, challenges of managing risk
in a global supply chain, and collaboration—that are addressed in this text. Meanwhile,
other supply management issues, such as global sourcing and supply chain collaboration,
continue to remain at the forefront. As the world’s technological and political environ-
ments continue to change and evolve, supply managers are faced with new challenges and
risks managing their global supply chains. Lastly, nearly one-third of the cases have been
replaced with new cases that cover topics such as risk management, cost analysis, metrics,
purchasing consortiums, and acquisition of capital equipment. Thus, the examples in the
text and 49 real-life supply chain cases afford the chance to apply the latest research and
theoretical developments in the field to real-life issues, opportunities, decisions, and prob-
lems faced by practitioners.

vi

Purchasing and Supply

Management
 Preface vii

In this edition, the focus on decision making in the supply chain has also been strength-
ened considerably. The chapter sequence reflects the chronological order of the acquisition
process. Criteria for supply decisions have been identified in three categories: (1) strate-
gic, (2) operational, and (3) additional. Criteria in the third category, including balance
sheet and income statement considerations, all dimensions of risk, sustainability consider-
ations, are growing in relevance and making sound supply decisions an even more complex
challenge.
Anna E. Flynn has been a coauthor of this text since the twelfth edition of this text
in 2002, after previously assisting with tenth and eleventh editions. Anna has been a
committed educator in the supply management field. She is a former faculty member at
Thunderbird School of Global Management and Arizona State University, where she was
also director of the undergraduate program in supply chain management. Anna also served
as vice president and associate professor at the Institute for Supply Management (ISM). As
a research associate for CAPS Research, she was able to explore important topics relevant
for supply management professionals. Her accomplishments include authorship of several
books. Although Anna did not participate in this edition, her past contributions are still
evident throughout this text.
A book with text and cases depends on many to contribute through their research and
writing to expand the body of knowledge of the field. Thus, to my academic colleagues,
I extend my thanks for pushing out the theoretical boundaries of supply management. To
many practitioners, I wish to extend my gratitude for proving what works and what does
not and providing their stories in the cases in this text. Also, many case writers contrib-
uted their efforts so that approximately one-third of all the cases in this edition are new.
Case contributors in alphabetical order included: Carolynn Cameron, Garland Chow, Jenni
Denniston, Dominque Fortier, Manish Kumar, Glen Luinenberg, Eric Silverberg, Dave
Vannette, and Marsha Watson.
The production side of any text is more complicated than most authors care to admit.
At McGraw-Hill Education Noelle Bathurst, Harper Christopher, Michele Janicek, Erika
Jordan, Elizabeth Kelly, Tobi Philips, Charles (Chuck) Synovec, Erin Tilley, and many
others contributed to turn our efforts into a presentable text.
The support of Acting Dean Mark Vandenbosch and my colleagues at the Ivey Business
School has been most welcome. Professors Larry Menor and Robert Klassen have pro-
vided invaluable feedback and assistance.
The assistance of the Institute for Supply Management (ISM) and the Supply Chain
Management Association in supporting the continuous improvement of supply education
is also very much appreciated.
P. Fraser Johnson

Purchasing and Supply

Management
McGraw-Hill Connect® Learn without Limits!
Connect is a teaching and learning platform that is proven to deliver better results for
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lets, SmartBook puts learning at the student’s fingertips—anywhere, anytime.

viii

Purchasing and Supply

Management
 Brief Contents
About the Authors v 10 Price 265
Preface vi 11 Cost Management 302
1 Purchasing and Supply 12 Supplier Selection 330
Management 1 13 Supplier Evaluation and Supplier
2 Supply Strategy 28 Relationships 371
3 Supply Organization 47 14 Global Supply Management 401
4 Supply Processes and Technology 79 15 Legal and Ethics 437
5 Make or Buy, Insourcing, and 16 Other Supply Responsibilities 488
Outsourcing 120 17 Supply Function Evaluation and
6 Need Identification and Trends 507
Specification 137
7 Quality 164 INDEXES
8 Quantity and Inventory 202 Case Index 542
9 Delivery 241 Subject Index 543

ix

Purchasing and Supply

Management
Table of Contents

About the Authors v Strategic Planning in Supply Management 31

Risk Management 32
Preface vi Operational Risk 32
Financial Risk 33
Chapter 1 Reputational Risk 33
Purchasing and Supply Management 1 Managing Supply Risk 34
The Corporate Context 34
Purchasing and Supply Management 3 Strategic Components 35
Supply Management Terminology 4 What? 35
Supply and Logistics 5 Quality? 36
The Size of the Organization’s Spend How Much? 37
and Financial Significance 6 Who? 38
Supply Contribution 8 When? 38
The Operational versus Strategic Contribution of What Price? 38
Supply 8 Where? 38
The Direct and Indirect Contribution of Supply 9 How? 38
The Nature of the Organization 13 Why? 38
Supply Qualifications and Associations 17 Conclusion 39
Challenges Ahead 19 Questions for Review and Discussion 39
Supply Chain Management 19 References 40
Measurement 19 Cases 40
Risk Management 19 2–1 Spartan Heat Exchangers Inc. 40
Sustainability 19 2–2 Suman Corporation 42
Growth and Influence 20 2–3 Stedmann Technologies 44
Technology 20
Effective Contribution to Organizational Success 21 Chapter 3
The Organization of this Text 21
Supply Organization 47
Conclusion 21
Questions for Review and Discussion 22 Objectives of Supply Management 49
References 22 Organizational Structures for Supply
Cases 23 Management 52
1–1 Denniston Spices 23 Small and Medium-Sized Organizations 52
1–2 Brennan Bank 24 Large Organizations 53
1–3 Hansen Equipment 25 Centralized and Decentralized Supply Structures 53
Hybrid Supply Structure 54
Chapter 2 Specialization within the Supply Function 55
Structure for Direct and Indirect Spend 58
Supply Strategy 28
Managing Organizational Change in Supply 58
Levels of Strategic Planning 29 Organizing the Supply Group 60
Major Challenges in Setting Supply Objectives The Chief Purchasing Officer (CPO) 60
and Strategies 31 Reporting Relationship 61
x

Purchasing and Supply

Management
 Table of Contents xi

Supply Activities and Responsibilities 62 9. Maintenance of Records and Relationships 93

What Is Acquired 62 Linking Data to Decisions 94
Supply Chain Activities 63 Manage Supplier Relationships 94
Type of Involvement 63 Improving Process Efficiency
Involvement in Corporate Activities 64 and Effectiveness 94
Influence of the Industry Sector on Supply A Supply Process Flowchart 94
Activities 65 Strategic Spend 95
Supply Teams 66 Nonstrategic Spend 96
Leading and Managing Teams 66 Information Systems and the Supply
Cross-Functional Supply Teams 67 Process 100
Other Types of Supply Teams 68 Benefits of Information Systems Technology 100
Consortia 70 ERP Systems 101
Conclusion 71 Cloud Computing and the Supply Chain 102
Questions for Review and Discussion 71 Electronic Procurement Systems 103
References 72 Electronic or Online Catalogs 105
Cases 73 EDI 106
3–1 Donovan Valley Purchasing Consortium 73 Marketplaces 106
3–2 Kokko Foods 76 Online Auctions 107
3–3 Lambert-Martin Automotive Systems Inc. 77 Radio Frequency Identification (RFID) 109
Implications for Supply 110
Chapter 4 Policy and Procedure Manual 111
Supply Processes and Conclusion 112
Questions for Review and Discussion 112
Technology 79
References 113
The Supply Management Process 81 Cases 114
Strategy and Goal Alignment 81 4–1 Qmont Mining 114
Ensuring Process Compliance 82 4–2 Eastern Pharmaceuticals Ltd. 115
Information Flows 83 4–3 Portland Bus Company 117
Steps in the Supply Process 83
1. Recognition of Need 83 Chapter 5
2. Description of Need 84
Make or Buy, Insourcing,
Purposes and Flow of a Requisition 84
and Outsourcing 120
Types of Requisitions 85
3. Identification of Potential Sources 86 Make or Buy 121
Issue an RFx 86 Reasons for Making 123
4. Supplier Selection and Determination Reasons for Buying 123
of Terms 87 The Gray Zone in Make or Buy 124
5. Preparation and Placement Subcontracting 125
of the Purchase Order 88 Insourcing and Outsourcing 126
6. Follow-Up and Expediting 89 Insourcing 126
Assess Costs and Benefits 90 Outsourcing 127
7. Receipt and Inspection 90 Implications For Supply 129
Eliminate or Reduce Inspection 91 Outsourcing Supply and Logistics 129
8. Invoice Clearing and Payment 91 Supply’s Role in Insourcing and Outsourcing 130
Improving the Procure-to-Pay Process 92 Conclusion 131
Cash Discounts and Late Invoices 93 Questions for Review and Discussion 131

Purchasing and Supply

Management
xii Table of Contents

References 131 Function 167

Cases 132 Suitability 167
5–1 Garland Chocolates 132 Reliability 167
5–2 Marshall Insurance Company 134 Quality Dimensions 168
5–3 Alicia Wong 135 “Best Buy” 168
Determining the “Best Buy” 169
Chapter 6 The Cost of Quality 169
Prevention Costs 171
Need Identification and Specification 137
Appraisal Costs 171
Need Criteria In The Value Proposition 138 Internal Failure Costs 171
1. Strategic Criteria 138 External Failure Costs 171
2. Traditional Criteria 139 Morale Costs 172
3. Additional Current Criteria 140 An Overall Quality–Cost Perspective 172
Categories of Needs 142 Quality Management Tools and Techniques 172
1. Resale 142 Lean Enterprise 172
2. Raw and Semiprocessed Materials 143 Total Quality Management (TQM) 173
3. Parts, Components, and Packaging 144 Continuous Improvement 174
4. Maintenance, Repair, and Operating Six Sigma 175
Supplies 145 Quality Function Deployment (QFD) 176
5. Capital Assets 145 Statistical Process Control (SPC) 176
6. Services 147 Sampling, Inspection, and Testing 180
7. Other 149 The Quality Assurance and Quality Control
Repetitive or Nonrepetitive Requirements? 149 Group 184
Commercial Equivalents 150 Assuring the Quality of Purchased Services 184
Early Supply and Supplier Involvement 151 Supplier Certification 189
Methods of Description 151 Quality Standards and Awards Programs 190
Brand 152 ISO Quality Standards 190
“Or Equal” 153 The Malcolm Baldrige National Quality Award 192
Specification 153 The Deming Prize 192
Miscellaneous Methods of Description 154 Conclusion 192
Combination of Descriptive Methods 155 Questions for Review and Discussion 193
Sources of Specification Data 155 References 193
Standardization and Simplification 156 Cases 194
Conclusion 157 7–1 The Power Line Poles 194
Questions for Review and Discussion 158 7–2 Caledon Concrete Mixers 196
References 158 7–3 Wentworth Hospital 198
Cases 159
6–1 Moren Corporation (A) 159 Chapter 8
6–2 Moren Corporation (B) 161 Quantity and Inventory 202
6–3 Haniff Machining 162
Quantity and Timing Issues 203
Chapter 7 Quantity and Delivery 204
Time-Based Strategies 204
Quality 164
Forecasting 205
Role of Quality in Supply Management 165 Forecasting Techniques 206
Defining Quality 167 Collaborative Planning, Forecasting, and
Quality 167 Replenishment (CPFR) 207

Purchasing and Supply

Management
 Table of Contents xiii

Determining Order Quantities Transportation Regulation and

and Inventory Levels 207 Deregulation 245
Fixed-Quantity Models 208 Supply’s Involvement in Transportation 245
Fixed-Period Models 209 Transportation Modes and Carriers 246
Probabilistic Models and Service Coverage 210 Truck 246
Buffer or Safety Stocks and Service Levels 210 Rail and Intermodal 246
Planning Requirements and Resources 212 Pipelines 247
Material Requirements Planning (MRP) 212 Air 247
Capacity Requirements Planning (CRP) 214 Marine 247
Manufacturing Resource Planning (MRP II) 214 Types of Carriers, Providers, and Service
Demand Driven MRP 214 Options 247
Enterprise Resource Planning (ERP) Systems 214 Types of Carriers 248
Supply Implications of MRP 215 Transportation Service Providers 248
Functions and Forms of Inventories 216 Specialized Service Options 248
The Functions of Inventory 216 Selection of Mode and Supplier 249
The Forms of Inventory 218 “Best Value” Delivery Decisions 249
Inventory Function and Form Framework 218 Key Selection Criteria 249
Inventory Management 220 FOB Terms and Incoterms 251
Costs of Inventories 220 Rates and Pricing 252
ABC Classification 222 Documentation in Freight Shipments 253
Vendor- or Supplier-Managed Inventory Expediting and Tracing Shipments 255
(VMI/SMI) 224 Freight Audits 255
Lean Supply, Just-in-Time (JIT), and Kanban Delivery Options for Services 255
Systems 225 Buyer Location versus Supplier Location 256
Managing Supply Chain Inventories 228 Transportation and Logistics Strategy 256
Determining Quantity of Services 230 Organization for Logistics 258
Aggregating Demand 230 Conclusion 258
Managing Consumption 230 Questions for Review and Discussion 259
Dimensions of Services and Quantity References 259
Decisions 230 Cases 259
Conclusion 232 9–1 Penner Medical Products 259
Questions for Review and Discussion 232 9–2 Russel Wisselink 260
References 233 9–3 Cameron Power Equipment 262
Cases 233
8–1 Lisa Caruso 233 Chapter 10
8–2 Throsel-Teskey Drilling 235 Price 265
8–3 Sondra Fox 237
Relation of Cost to Price 266
Chapter 9 Meaning of Cost 267
How Suppliers Establish Price 269
Delivery 241
The Cost Approach 269
Logistics 242 The Market Approach 269
Role of Logistics in the Economy 243 Government Influence on Pricing 270
Role of Supply in Logistics 243 Legislation Affecting Price Determination 270
Transportation 243 Types of Purchases 272
Outsourcing to Third-Party Logistics (3PLs) Raw and Semiprocessed Materials 273
Service Providers 244 Parts, Components, and Packaging 273

Purchasing and Supply

Management
xiv Table of Contents
Maintenance, Repair, and Operating Supplies (MRO)
and Small-Value Purchases (SVPs) 274
Capital Assets 274
Services 275
Resale 275
Other 275
The Use of Quotations and Competitive
Bidding 275
Steps in the Bidding Process 276
Firm Bidding 277
Determination of Most Advantageous Bid
Collusive Bidding 278
Public-Sector Bidding 279
The Problem of Identical Prices 281
Discounts 282
Cash Discounts 282
Trade Discounts 283
Multiple Discounts 283
Quantity Discounts 283
The Price-Discount Problem 284
Quantity Discounts and Source Selection
Cumulative or Volume Discounts 286
Contract Options for Pricing 286
Firm-Fixed-Price (FFP) Contract 286
Cost-Plus-Fixed-Fee (CPFF) Contract 286
Cost-No-Fee (CNF) Contract 287
Cost-Plus-Incentive-Fee (CPIF) Contract 287
Provision for Price Changes 287
Contract Cancellation 289
Forward Buying and Commodities 289
Managing Risk with Production
and Marketing Contracts 290
Forward Buying versus Speculation 290
Organizing for Forward Buying 291
Control of Forward Buying 291
The Commodity Exchanges 292
Limitations of the Exchanges 293
Hedging 293
Sources of Information Regarding
Price Trends 295
Conclusion 296
Questions for Review and Discussion 297
References 297
Cases 297
10–1 Wedlock Engineered Products 297
10–2 Coral Drugs 299
10–3 Price Forecasting Exercise 301
Purchasing and Supply
Chapter 11
Cost Management 302
Strategic Cost Management 304
Supply Cost-Reduction Programs 304
Supplier Cost Management 305
Frameworks for Cost Management 306
Cost Management Tools and Techniques 308
Total Cost of Ownership 308
Target Costing 314
278 The Learning Curve or Experience Curve 315
Value Engineering and Value Analysis 316
Activity-Based Costing 317
Supply Chain Financing 318
Negotiation 318
Negotiation Strategy and Practice 319
Framework for Planning and Preparing
for Negotiation 320
Conclusion 322
Questions for Review and Discussion 323
285 References 323
Cases 324
11–1 Northwest Gas & Electric Company 324
11–2 McMichael Inc. 326
11–3 Carmichael Corporation 328
Chapter 12
Supplier Selection 330
The Supplier Selection Decision 331
Decision Trees 332
Identifying Potential Sources 333
Information Sources 334
Standard Information Requests 338
Additional Supplier Selection Decisions 339
Single versus Multiple Sourcing 339
Manufacturer versus Distributor 341
Geographical Location of Sources 342
Supplier Size 344
Supplier Development/Reverse Marketing 344
Evaluating Potential Sources 346
Level 1—Strategic 346
Level 2—Traditional 350
Level 3—Current Additional 352
Ranking Potential Suppliers 357
Conclusion 358
Questions for Review and Discussion 358
Management
 Table of Contents xv

References 359 Selecting and Managing Offshore Suppliers 415

Cases 359 Global Sourcing Organizations 415
12–1 Carson Manor 359 Intermediaries 416
12–2 Kettering Industries Inc. 365 Information Sources for Locating and Evaluating
12–3 Bid Assessment 367 Offshore Suppliers 417
Incoterms 418
Chapter 13 Rules for Any Form of Transport 419
Rules for Sea and Inland Waterway Transport
Supplier Evaluation and Supplier
Only 420
Relationships 371 Tools for Global Supply 421
Measuring Supplier Performance 372 Countertrade 421
Key Performance Indicators (KPIs) 372 Foreign Trade Zones 423
Evaluation Methods 373 Bonded Warehouses 425
Informal Evaluation and Rating 373 Temporary Importation Bond (TIB)
Semiformal: Executive Roundtable Discussions 374 and Duty Drawbacks 426
Formal Supplier Evaluation and Rating 374 Regional Trading Agreements 426
Supplier Ranking 377 North American Free Trade Agreement
Unacceptable Suppliers 377 (NAFTA) 426
Acceptable Suppliers 377 The European Union (EU) 427
Preferred Suppliers 377 ASEAN 427
Exceptional Suppliers 377 Mercosur 428
Supplier Relationships 378 Andean Community 428
Supplier Relationship Context 379 China’s Trade Agreements 428
Supplier Goodwill 379 The World Trade Organization (WTO) 428
The Buyer–Supplier Satisfaction Matrix 380 Emerging Markets 428
Supplier Relationship Management 383 Conclusion 430
Partnerships and Alliances 384 Questions for Review and Discussion 430
Early Supplier/Supply Involvement (ESI) 385 References 430
Partner Selection 385 Cases 431
Types of Partnerships and Alliances 386 14–1 Trojan Technologies 431
The Longer-Term Perspective 387 14–2 Marc Biron 433
Concerns about Partnerships and Alliances 388 14–3 Sarin Pharmaceuticals Ltd. 434
Multi-tier Supplier Relationships 389
Conclusion 389 Chapter 15
Questions for Review and Discussion 389
Legal and Ethics 437
References 390
Cases 390 Legal Authority of Buyer and Seller 438
13–1 APC Europe 390 Legal Authority of the Buyer 439
13–2 Stern Aerospace 394 Personal Liability 440
13–3 Northeastern Hospital 397 Authority of Suppliers’ Representatives 441
The Uniform Commercial Code 442
Chapter 14 Purpose of a Uniform Commercial Code 442
The Purchase Order Contract 443
Global Supply Management 401
Acceptance of Offers 444
The Importance of Global Supply 402 Purchases Made Orally—Statute of Frauds 445
Reasons for Global Purchasing 403 Inspection 446
Potential Problem Areas 407 Acceptance and Rejection of Goods 447

Purchasing and Supply

Management
xvi Table of Contents

Warranties 448 Accounts Payable 491

Title to Purchased Goods 449 Investment Recovery 491
Protection against Price Fluctuations 449 Categories of Material for Disposal 493
Cancellation of Orders and Breach of Contract 450 Responsibility for Material Disposal 497
Common Law and the Purchase of Services 451 Keys to Effective Disposal 497
Software Contracts 457 Disposal Channels 498
E-Commerce and the Law 458 Disposal Procedures 500
Electronic Signatures 458 Selection of Disposal Partners 501
U.S. Uniform Electronic Transactions Act 459 Conclusion 502
Intellectual Property Laws 460 Questions for Review and Discussion 502
Copyright Law 460 References 503
Patents 460 Cases 503
Trademarks 462 16–1 Ross Wood 503
Industrial Design 463 16–2 Raleigh Plastics 504
Geographical Indication 463 16–3 Durham Cabinets 506
Product Liability 463
Alternative Dispute Resolution 464 Chapter 17
Commercial Arbitration 465
Supply Function Evaluation and
Mediation 465
Trends 507
Internal Escalation 466
Regulatory Requirements 466 Supply Research 509
The Dodd-Frank Act and Conflict Minerals 466 Full-Time or Part-Time
The Sarbanes-Oxley Act 466 Research Positions 510
Environmental Regulations 467 Cross-Functional Teams 511
Ethics 468 Supply Research Opportunities 511
Conflict of Interest 471 Purchased Materials, Products, or Services 512
Gifts and Gratuities 471 Commodities 515
Promotion of Positive Relationships with Suppliers 515
Suppliers 473 Assessing Research Results 518
Reciprocity 474 Supply Planning Process 519
Sustainability 475 Supply Budgets 519
Conclusion 476 Performance Measurement Systems 520
Questions for Review and Discussion 476 The Value of Supply Metrics 520
References 477 The Challenges 521
Cases 477 Measuring Supplier Performance 522
15–1 Rocky Plains Brewing Ltd. 477 Supply Management Performance Metrics 522
15–2 Sinclair & Winston 479 Developing Metrics 523
15–3 Harwich College 483 Setting Targets 523
Establishing Metrics 524
Chapter 16 Operating Reports 525
Validating Results 526
Other Supply Responsibilities 488
Appraising Team Performance 526
Receiving 489 Supply Performance Benchmarking 527
Logistics and Warehousing 490 Supply Management Trends 528
Inbound and Outbound Transportation 491 Emphasis on Total Quality Management
Production Planning 491 and Customer Satisfaction 528

Purchasing and Supply

Management
 Table of Contents xvii

Sustainability 528 Conclusion 535

Global Sourcing 529 Questions for Review and Discussion 536
Protectionism 531 References 536
Risk Management 531 Cases 537
Safety and Security 532 17–1 Randall Corporation 537
Supply Processes and Technology 532 17–2 Stewart Corporation 538
Blockchain 532 17–3 QBL Products 540
Supply Organizations 533
External and Internal Collaboration 534
Metrics and Performance Measurement 535
Indexes
Innovation 535 Case Index 542
Public Procurement 535 Subject Index 543

Purchasing and Supply

Management
Purchasing and Supply
Management
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 THE HAPPINESS OF BEING
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which led to the universal discussion that immediately followed. No
one wished or expected to go to the place concerning which he set
forth some of the particulars, and even some of the secrets; but as
everybody had friends who were in danger of such a fate, and
enemies who were certain of it, there was naturally no little curiosity
to learn from the writings of the early Fathers and later learned
ecclesiastics whom Dr. Mivart quoted how these persons would fare
there. To the general surprise, he disclosed that even in that dismal
abode, with an eternal summer of a temperature the height of which
no thermometer known to earthly science could measure, there was
yet to be expected at times a certain degree of felicity. Christmas
and Easter, it may be remembered, were days off, when holiday
existed, the fires were banked and comparative coolness prevailed.
To the man or woman of acute sight, who sees everything far or
near without the necessity of optical aids, and to whom all
surroundings are definite and clear, and who recalls the fellow-being
who must either wear glasses or grope and stumble and be
uncertain of environment, it would appear nonsense to say that there
is a happiness in being nearsighted. And yet in a certain form of
nearsightedness there are sources of delight which even the man of
perfect sight never knows. There are scientific distinctions which the
oculist who examines your eyes and the optician who is anxious to
sell you a pair of glasses will explain between the nearsightedness
which compels you to pore over a book, holding it close to your eyes,
and the other form which enables you to read the finest print without
glasses, and yet debars you from recognizing your wife or mother-in-
law half way across the street. There is certainly not much happiness
in the former, because, although it may give the impression that you
are a close student and a man of deep erudition to go about with a
book or newspaper directly at the end of your nose, the appearance
you present is not heroic or graceful, and the young ladies seeing
you are apt to smile; and being regarded as a book-worm and
pedant you can never hope to create much of a figure in society.
It is only the nearsighted man who can not distinguish things very
well at a distance, and who, therefore, gets a strictly impressionist
view of life, who really enjoys existence. He can do without his
glasses, if necessary, or if he does not think them becoming, and yet
experience almost perfect comfort. For him, indeed, the world never
loses its illusions, and years, far from robbing him of this boon, only
adds to the glamour of enchantment in which he lives. There are
those who maintain that the really great men of history have always
been short—not in funds, but in stature—and they instance
Socrates, Napoleon, Edmund Kean, Victor Hugo and a multitude of
others; but, in point of fact it may be still more conclusively shown
that the majority of great men have been short-sighted. Much of the
romantic view of existence taken by the ancients we may ascribe to
the fact that many of them were near-sighted and had not the use of
spectacles, which did not come into vogue until the Thirteenth
Century, although the Chinese, it is said, had them for some time
before that. Nothing but nearsightedness could have so stimulated
the imagination of Shakespeare and idealized everything about him,
although, indeed, it is true that we have no portraits or busts in which
he is shown to have worn glasses. Still, there are so many
references in his writings to “thickness of sight” and difficulties of
vision, and there are such exquisite descriptions of color effects, that
we can not doubt him to have been the victim of what the doctors
would call optical infirmity, although it is quite the reverse.
The fact that many of our famous modern poets did not wear
glasses is no proof that for definite seeking they did not require
them. Byron, Shelley or Keates, we may be sure, never would have
worn glasses in any circumstances, as such appurtenances would
have been out of character. There was not in their time the great
variety of the pince-nez that we have at present, rimless and almost
invisible; but there was the very fashionable single eyeglass, rather
larger than the monocle in use at present, and that Beau Brummel
himself, and later Count D’Orsay, did not disdain. The Duke of
Wellington used a single eyeglass, tied to a black ribbon, which hung
about his neck, habitually, and through it saw the Battle of Waterloo,
and, before the engagement was over, Blücher’s columns coming
up.
But to enjoy the happiness of being nearsighted the eyeglasses
and spectacles should be dispensed with and life viewed through the
natural organs alone. Then it is, as already remarked, that we get the
impressionist effect, which is the only one worth having. The man
with what are called good eyes perceives all the details, and
consequently all the coarse and ugly particulars of the life, still and in
motion, about him, and all its faults and shortcomings. After all, what
we want is feeling; the thousand intricacies of form we do not need
or desire; give us the general effects and our spirit transfigures them.
Give us figures, incidents and scenes in vague and poetic mass, and
the most delightful and thrilling emotions are aroused.
These are the results obtained by the nearsighted man. To him
there is very little that is ugly in life, and especially is it true that all
women are beautiful. As I go through the streets I meet at every turn
the most exquisite girls, of whose features, indeed, I know little in
detail, but there comes to me a general effect of brilliant eyes, lovely
complexions and entrancing hair. Every figure is elegant and each
walks with the step of a goddess. There are some old women, but
none middle-aged or faded; I know not that most distressing of
mortal wrecks, the woman “well preserved.” I catch a swift glimpse of
a face at a window, or one flashes from a carriage—it is always fair;
in the crowded thoroughfares of the shopping districts the tall and
picturesque hats, covered with flowers; the soft gowns, the ribbons
of myriad colors flit by, giving me but a glimpse, and ravish me. Still
more enchanting are these graceful beings at night by the electric
light, or vaguely disclosed in the wan beams of the moon.
Natural scenery has a charm which the unhappy man who is not
nearsighted can never know. Everything looks uncertain, dim, hazy
and very often mystical; colors affect the eye with a delicious
softness; there are no keen and cruel contrasts; distant woods and
skies, with the multitude of intermingled hues in summer, and the
browns and grays of autumn and winter, fall tenderly upon the vision.
The changes of light upon the mountain side, and, still more vividly,
the seashore, early in the morning or at sunset, stir the deepest
sources of sentiment. The nearsighted eye is never photographic;
the lines and colors are everywhere mingled and confused, and in
both rest and action there is a delicious complexity and
indefiniteness.
One can imagine no more interesting scene of movement than
that in the evening at the height of the season on the esplanade at
Atlantic City. I never witness it without thinking of two of the dreams
of De Quincey, which he describes in some detail—the one of the
crowd moving by in endless procession, like the figures on a frieze,
on and on forever, the other of the innumerable faces of his vision
revealed in the incessant convulsions of the ocean. At about half-
past eight o’clock in the evening toward the end of July, when the
season is at its climax, this impressive throng, in two lines, moving to
the right and to the left, is most numerous. There is, so far as I am
aware, nothing precisely like it anywhere else in the world—so
variegated, so well-dressed, so lively and so complicated. To enjoy it
perfectly there must be the vagueness of a veiled vision, and then, in
addition to the passing faces, you catch the soft, dreamy effects of
the costumes—whites and pinks, sometimes even the bold
Mephistophelean red; the dim azures, the pale greens subsiding into
yellow. In the two tides goes this strange army, slow in motion,
laughing, volatile, the silvery tinkle of feminine laughter and the
deeper murmur of conversation. To observe this throng has an
absorbing fascination, but if at times you rest, it is to look over the
railing of the esplanade at the darkness of the ocean and watch the
waves rushing in, like sheeted women with outstretched and
affrighted arms.
Summing up, if I were asked to define the special enjoyment
derived from nearsightedness, I should say that it arises from two
sources—the serenity of the scenes disclosed by the sight, the
absence of harshness in sky, landscape or environment anywhere;
the fusing of mean details into an agreeable mass. And even
stranger and pleasanter than this is the mystical effect; the softness
and dreaminess of atmosphere and distances; the indolent,
abstracted and slightly melancholy tone of mind produced; the
beguiling idealization of existence.
—Walter Edgar M’Cann.
 “An XVIII Century Beauty.”

From the miniature by Hugh Nicholson.

 COMMENT

We take great pleasure in presenting to our readers this month the

first installment of a serial story by the famous Spanish novelist, D.
Ramon Ortega y Frias. The translation is the work of Mr. L. Solyom,
of Washington, whose ability as a linguist is well known and of a very
high order. “Elena’s Daughters,” a romance full of the charm of
movement and color, depicts, with unusual skill, the life of the
Spanish people in the early part of the Seventeenth Century, when
Philip IV was king, and when love was won by the sword and honor
was held to be a priceless thing. The manners and customs, the
superstitions and ignorance, the desperate bravery and cunning of
the times are made to contribute to the absorbing interest of the
story, an interest that is fully maintained to the concluding sentence
of the last chapter.
D. Ramon Ortega y Frias was born in 1825. Long sickness and
family misfortunes compelled him to give up studies and to devote
his life to literary pursuits. He is one of the most popular Spanish
novelists—in fact, he may be considered the father of the Spanish
novel, being the first to replace the numerous French translations
which were almost exclusively read before he wrote his original
compositions. His subjects are drawn from Spanish history and give
true pictures of the manners and customs of the country. He has also
translated some works from the French, and has written poetry and
numerous critical literary articles.
 Through the courtesy of Mr. Hugh Nicholson, the well-known
English miniaturist, we are enabled to reproduce one of his most
important miniatures. It is called “An Eighteenth Century Beauty,”
and was given the place of honor in the inaugural exhibition of the
London Society of Miniature Painters, held in 1896. Mr. Nicholson
has been engaged in painting little portraits of prominent
Baltimoreans for the past two seasons, and his recent return to
Baltimore from abroad proves the continuance of his well-merited
popularity. His work is distinguished by exquisitely delicate coloring
and technique, and never lacks the strength necessary to the
successful portrayal of character.

A most important event in the artistic life of the South, and one
whose ultimate results are likely to be of such a far-reaching nature
that is impossible to even roughly estimate their valve at the present
time, occurred on January 18th., 1899. On that day a group of
representative and influential gentlemen met at the residence of Mr.
Theodore Marburg and founded what is known as The Municipal Art
Association of the City of Baltimore. Although the idea of such an
organization is not a new one,—such associations already exist and
are in a flourishing condition in New York, Boston and other Northern
Cities,—no such society can be found elsewhere in the South.
Baltimore can therefore for once be justly congratulated on having
shown a spirit of real enterprise and civic pride, which, sooner or
later, is sure to be followed by all her Southern sisters.
The main object of this new municipal art association is to receive
and collect funds for the beautifying of the public squares and
buildings of the City. It will also use its utmost endeavors—through
experts and disinterested, broad-minded laymen—to have such
funds judiciously expended. It is proposed to enlarge the
membership, which is somewhat limited at present, as much as
possible and at the same time, to form a woman’s auxiliary branch
that will work in harmony with the main organization, composed
exclusively of men. It is estimated that a body of at least two
thousand public-spirited men and women can thus be found and
eventually welded into a powerful association devoted to the very
best artistic interests of the people of Baltimore. If this calculation is
correct, a considerable amount of money will accumulate annually in
the treasury of the society, solely from the collection of the yearly
dues, which have been wisely fixed at the small sum of $5.00. In
order to increase the association’s resources much more rapidly
than is otherwise practicable, it has been resolved that life
membership may be procured by those who are willing to pay the
sum of $100.00, and that the title of “Patron” will be bestowed on all
those who are liberal enough to donate the sum of $1000, or more.
The money so collected from dues and voluntary contributions is to
be carefully husbanded until the amount becomes sufficiently large
to justify the directors in opening a worthy competition for the
decoration of some public building, the erection of a statue, or the
building of a monument of real and lasting artistic merit. It may not
be possible to procure enough money to purchase such a work of art
annually, but it will be a question of only a few years at most before
the results of this much needed society will become evident to the
least observant. It is with feelings of the greatest pleasure that we
commend this highly laudable and intelligent movement to the
people of Baltimore, and we hope they will give it their unswerving
and enthusiastic support.

At the first meeting of the organizers of The Municipal Art

Association of the City of Baltimore, it was stated that the articles
and by-laws governing this new society had been taken almost
bodily from those of the New York organization. It was argued that as
they had been thoroughly tested and proved to be of great working
value in New York, therefore they must of necessity be suited to the
needs of Baltimore. In a certain measure this is true, but the
reasoning is rather fallacious and misleading. The artistic conditions
that prevail at the present time in the two cities are by no means the
same: New York has a Metropolitan Museum, filled with the finest
specimens of ancient and modern art, which is always open to the
public, besides an Academy of Design, a Society of American
Artists, an Architectural League and any number of galleries that are
constantly instructing the people in what is being done by native and
foreign contemporaneous artists—whether they be painters,
sculptors, or architects. In Baltimore we have only the Walters’
Gallery,—a wonderfully fine collection of paintings, ceramics, and
bronzes, to be sure, but one that is practically unchanging and that is
open to the public for only a comparatively few days of the year,—
and such small exhibitions of pictures as can be collected from time
to time through the efforts and enterprise of Mr. David Bendann and
the Charcoal Club—an organization that is far from being supported
as it should be by those interested in the artistic development of the
City.
General Felix Agnus forcibly voiced the feeling of a great many of
the gentlemen who founded the new society when he suggested that
the scope of The Municipal Art Association of the City of Baltimore
be enlarged by such changes in the articles of incorporation as
would eventually empower it to erect a public Museum, and to
receive bequests in the shape of paintings and other works of art.
We would go farther than General Agnus and suggest to the board
of Directors that the New Art Association be not only empowered to
collect funds to build a Museum, but a fire-proof, well-lighted gallery
also, constructed especially for, and devoted solely to a yearly
exhibition of works by modern artists. Until this is done Baltimore
must of necessity remain more or less ignorant and provincial in all
artistic matters. Galleries for such yearly exhibitions exist in every
other large city of the United States, and that one has not been built
here long ago is due, we are sure, not to a dearth of funds or taste,
but solely to a curious lack of co-operation among those who have
the power and the inclination to stimulate the rational development of
a love for things of beauty.
We therefore hope that The Municipal Art Association of the City
of Baltimore will not imitate too closely the objects and the by-laws of
the New York Society, but will add these other two extremely
necessary projects to an already praiseworthy program, and thereby
render our citizens more appreciative of the artistic attractions they
propose to offer them in the near future.
 There is no spectacular display, either in the old world or in the
new, to compare with the New Orleans Mardi Gras. But there has
been too little care paid to the development of the floats and of the
costumes of the mummers,—those which are directly under the
control of the committee which is usually placed in charge.
We are always interested in art, and in the artist, and would
suggest that our New Orleans friends might add greatly to the
excellence of their entertainment by consulting men more of an
artistic than of a business temperament in arranging their annual and
unique displays.

The movements in the local security markets have shown a

somewhat halting tendency of late. This is not unnatural, following
the sustained upward movement and the broad and active buying
which has marked the operations in stocks and bonds for several
months. Operators and dealers are not disturbed that the market
should rest for awhile, and confidence is easy where it is felt that the
rising trend to values will again occur as soon as investors have
been able to scan the field anew and to digest the conditions which
affect the values of securities.
There has been no decline here, as this is essentially an
investment and not a speculative market. Prices are not stimulated
or advanced by stock jobbing operations and false rumors which so
seriously affect values in speculative centres, but rest solely on the
merits of the property which the security represents. There has been
a slight shading of values in a few instances in issues which had
been rapidly advanced by the strong public demand. This was
notably the case in the shares of some of the new trust companies.
The Continental Trust stock had an abnormal rise to $285 a share,
representing a premium of $85 a share, as $200 a share will be paid
in by the stockholders. Since the Stock Exchange permitted trading
in the receipts of this company the premium has declined 25 points,
as at the close of last week it was reported that the stock had been
offered 110, with 100 the best bid. Citizens’ Trust shares have also
fallen off from 57 to 49½, with declines less marked in the shares of
the older institutions, and with many of them showing gains.
The announcement of the entrance into the local trust field of a
new company with large capital and influential backing probably had
some unfavorable effect on the stocks of the companies recently
started. This new concern will be a strong bidder for business, and
while it is expected to work in a field of development, it is not unlikely
to receive some business which would have gone to the other
companies.
This field of trust seems to be a favorable and a profitable one,
however, for large combinations of capital.

We spoke in our last issue of the opportunity that was about to be

given to erect a fine and lasting monument to the memory of the
Confederate and Federal soldiers who lost their lives on the battle-
field of Antietam. This opportunity presented itself early in January to
the judges in charge of the competition for a commemorative
monument, or statue, for the erection of which ample funds were
voted by the Maryland Legislature. We had some misgivings as to
the artistic merits of the sketch that would be chosen,—owing to the
fact that such awards are usually left to the taste of artistically
incompetent persons, instead of to men whose training and
experience guarantee that the work shall be, if not great, of at least a
fair average quality,—but we had no idea that even judges selected
at random (as these evidently were) would be willing to put
themselves on record as approving a design that, while not out of
place for a summer-house or a soda-water fountain, is altogether so
in a memorial erected to the glory of our dead heroes.
If these gentlemen paid for the monument out of their own pockets
and offered it to the State as a gift, it still ought to be refused as
utterly unworthy the subject, or of public acceptance, but it is nothing
less than outrageous to force the taxpayers of Maryland to accept
and to furnish money for such a travesty on good taste. To make
matters even worse, and that, strange to say, the judges found was
entirely possible, the award was given to a New England contractor,
so that we are not only to have a most inappropriate monument, but
an inappropriate one made in another State for which an important
sum of money must be paid by the people of Maryland. We are not
narrow-minded in these matters, and believe that, to fittingly honor
our brave dead, we should have the best sculptor or architect that
can be procured, no matter whence he comes, but it can hardly be
claimed in this case that it was necessary to go outside the State.
In fact, it seems to us, it would hardly have been possible to find
anything more trivial or unsuitable, even had a prize been especially
offered for that purpose. That such things are accepted with so little
complaint by the press and public almost justifies one in abandoning
hope that we shall ever see any real improvement in our muddled
way of looking at questions of this sort.

No military organization in the United States is better and more

favorably known than the Fifth Maryland, distinctively a Southern
regiment.
For over thirty years it has stood the equal of any militia regiment
in the country. In latter years the only organization, in the popular
mind, that challenged its supremacy was the Seventh New York, and
when the famed Seventh declined to go to the Spanish war and the
Fifth, in a body, volunteered for government service, to go anywhere
they were ordered to go and do anything they were asked to do,
there could be no further doubt that the Fifth Maryland, which has
always clung to its gray uniform, emblematic of other days, was the
“real thing,” as far as the militia of the country was concerned.
It seems a shame that not only the people of Baltimore and of
Maryland, but the people of the South generally, should not take
vigorous offence that at this time, after the regiment has served its
country for over three months, and has returned to its armory in
Baltimore, for what are, apparently, political reasons and reasons of
personal gratification, this splendid body of men should be
threatened with dissolution.
 In this condition which confronts the command several things
enter.
In the first place, there never was any discord, never any
disagreement among the officers until a certain element appeared.
This element has gone now, but other troubles have arisen. Its old
commanding officer, whom all the men loved, was prevented from
going to the Spanish war with his command—questionably
prevented,—as subsequent events have shown. With him,
“physically disqualified,” were other officers, quite as well beloved
and respected by the men, and all of these gentlemen still hold their
commissions from the State of Maryland.
The order retiring them was one from the Adjutant-General of the
State, which order, by the way, has very recently been revoked,—
and now a board has been appointed to examine these officers
physically and otherwise. Before the Adjutant-General recalled his
retirement order, they had asked to be returned to the offices to
which their commissions lawfully entitled them.
The make-up of the board appointed to treat the cases of these
officers has been questioned, not only upon the ground that it is
partisan, but because some of its members are not qualified to serve
upon it. Before this number of “Dixie” goes to press the board will
have met. Possibly it will have reached its decision. It is probable, if it
disqualifies these men, that numbers of Southerners will consider it a
case of hanging them first and trying them afterwards.
The people like the Fifth Maryland. Its officers like it. And if the
“retired” officers are not allowed to go back to their command,—
these officers whom their men love,—there will be no more Fifth
Regiment. Its other officers will resign, its faithful enlisted men will
vanish like smoke, and in the place of the Fifth of fame there will be
a hybrid combination, sustained by that sort of political power that
commands no respect from honest-thinking men.
There is yet time for the “powers that be” to pause. The Fifth
Regiment is not a thing to be ruthlessly slaughtered. Parties come
and parties go, but there are elections yet to come, and the men of
Maryland and of the South will not forget those who killed their
cherished Fifth Maryland.
 BOOKS & AUTHORS
TWO POET-NOVELISTS.

GEORGE MEREDITH.
Art and artists are continually suffering at the hands of “belletristic
triflers.” Phrase-making is the passion of the day; and as a falsity or
a half-truth concerning literary matters is so much easier of utterance
than the awkward whole truth, that demands lengthy qualifications,
we seldom find the latter gaining in the race with glittering
mendacities. It is not, for instance, the saner body of Matthew
Arnold’s criticism that has been generally absorbed; it is his more or
less questionable catch-words and airy brevities of characterization.
These seem apt to the understanding because they fit so well the
tongue; their convenience gives them their fatal persuasion. The
world likes a criticism in little, a nut-shell verdict, something of
intellectual color that can readily be memorized for dinner-table
parlance, the vague generalization that conceals the specific
ignorance. Macaulay’s “rough pistolling ways and stamping
emphasis,” Scott’s “bastard epic style,” and the conception of
Shelley as “a beautiful and ineffectual angel beating in the void his
luminous wings in vain” have thus come to be solemn verities with
many who care more to talk literature than to read it. A whilom gaiety
of journalism served to convince the public that Whitman’s voice was
a “barbaric yawp”; and consequently his “Leaves of Grass” is seldom
glimpsed save in a spirit of derision. These are some of the unhappy
results of our latter-day strain after “a pregnant conciseness” of
language.
George Meredith like many of his predecessors has suffered much
from the thumb-nail criticism of the day. His judges are apt to insist
upon his mannerisms and to insist on nothing else. The generality of
readers hearing so much about the “mereditherambic style” rest
under the belief that this writer is a tripod of frenzied incoherence;
that he lacks, especially as a poet, both style and substance. That
this is far from being the truth about Meredith’s verse anyone who
has read it with attention well knows. Not only does much of it fulfil
the requisites of orthodox style, but it contains, even more than his
novels, the vital convictions of his mind. Indeed, it is in his verse we
come nearest the real teacher, as we come nearest the man in his
relation to life at large—to the general scheme of things.
A realization of George Meredith’s poetical virtues by the reader of
real literature is due a writer who has proved his claim to genius in a
monumental series of novels, a writer who, while not acceptable to
all, has yet many admirers that regard him as one of the strongest
towers of modern thought. One can, however, scarcely hope for
more than a limited acceptance of his poems; that he should be
popular in the ordinary meaning of the word, as some poets are
taken to heart by the sons of men, is indeed scarcely conceivable.
Such popularity, which is after all an equivocal tribute for the most
part, Mr. Meredith has never aimed to secure. His has been a life of
remoteness from profane ambitions, a life steadfast to the standard
early set for himself—a standard of the highest kind.
And yet, while Mr. Meredith may not exercise the attraction of
many other poets for the general reader, few will deny that in his
fruits of song one tastes the flavor of an original, deep-seeing mind;
that there is in the character of many of his poems what well rewards
the serious attention necessary to their complete comprehension.
Difficult in part they may seem in the casual reading, owing to
combined entanglement of rhetoric and ideas, but few who press
their inquiry past the line of a first natural discouragement of perusal
can fail totally to be affected by the spell they cast over the mind.
Beauty there is unquestionably lurking beneath what seems often a
wilful obscuration of theme. Coming here and there upon some
apparently dry metrical husk of thought, there falls, as from some
frost-bitten flower-pod, a shower of fairy seeds that lodge as a vital
donation within the remembrance. Groping in the midst of a
Meredithian mystery, even the less sensitive ear catches a ritornello
of exquisite, wholly seductive sound. For it is not so infrequently that
like his “The Lark Ascending.”

“He rises and begins to round,

He drops the silver chain of sound,
Of many links without a break,
In chirrup, whistle, slur and shake—”

The lark-note is not, however, the leading characteristic of Mr.

Meredith’s muse, although quite within the scope of it. It is rather the
lark’s joy in nature clothed with the more artificial vocalism of man.
Mr. Meredith is pantheist in large measure when he attunes his lute-
strings to the demands of Mother Earth. For him the gods of Greece
do not live only in the pages of Lempriere, as most modern poets
would have us believe, but they still maintain, albeit in more subtle
form, their old supreme habitation in lawn and sylvan hollow, or mix
with the familiar miracle of grey eve and rose-red dawn. In his verse
Mr. Meredith hastens to undo the harness of that worldly wisdom that
binds him in his novels. He re-baptizes himself to the graces of
nature pure, rejoices in all that belongs to the idealism of primitive
life. The poet can pipe as rustically as a faun when he is so minded.
He can pay a moving tribute to young love and the romance of
vernal feeling, as proved by that beautiful lift of minstrelsy, “Love in
the Valley,” with its limpid, ecstatic meter, its delicious imagery and
spiritual sweetness of thought; not to speak of many other lyrics of
the same sort. These lighter pleasures and profits of George
Meredith, together with his more serious efforts, like “Ode to the
Spirit of Earth and Autumn,” a magnificent color-poem, uniquely
accenting the bacchic abandon of October and trumpeting mightily
the note of triumphant manhood, and “The Nuptials of Attila,” full of a
haunting rush of language, ought to afford substantial relish to the
general admirers of high art.
Has George Meredith’s vigorous, almost massive harp a message
for humanity? is the natural inquiry of those who reading Wordsworth
or Tennyson find in their works sure faiths and consolatory teaching.
And is such message so abeyant that only those of his readers who
are endowed with power of subtle divination may find it? Certainly in
the case of the seer the debt of clear utterance is obligatory, just as
from the lyricist we look for delight and tears and mellifluence; it is a
responsibility that falls from heaven with the mantle of inspiration,
only a congenital inceptitude for lucidity excuses it. Too often, it must
be confessed, it is only the ghostly sense of a message that trails
through Mr. Meredith’s work, glimpsing and disappearing in will-o’-
wisp fashion. The thirsting traveller chasing such mirages of
meaning over the sands of obscurity may be pardoned if he
conclude that to only the very privileged few does the Fata Morgana
of his muse grant a kindly haven of specific instruction. But while this
is true of passages and poems, it is not true of all his poems. There
is much in his volumes of verse that state distinctly his philosophical
principles. The ground-work of Mr. Meredith’s philosophy is the worth
of nature as distinct from the artificial institutions of man. In nature
pure exists the true temple of wisdom; it is the tribunal whereat all
knowledge and sentiment must finally receive its endorsement or its
condemnation. In nature we open the real book of life. It is, therefore,
that in his verse we find continually a worship of the liberty of the
forest, a recognition of its power to promote the vital growth of heart
and head. Mr. Meredith would not have us forget that the mind and
spirit are integral elements of nature. Particularly in “The Woods of
Westermain,” beginning,

“Enter these enchanted woods,

You who dare—”

is this philosophy stated forcibly and at length. Naturalness in all

things is the keynote of his utterance. It is from his poetry that we
gain the clue to that humorous and seemingly harsh, satirical attitude
towards worldliness which distinguishes his novels and has
occasioned the frequent outcry that Mr. Meredith is a heartless
epigrammatist. The truer criticism is that he derides the artifices, the
sham decencies and mawkish sentimentality of society as the
earnest champion of the natural. Thus we find Sir Willoughby
Patterne in “The Egoist” demonstrating the pursuit of a spurious
worldly philosophy, as we find the hero of “Richard Feverel” proving
the mistake of yoking nature to an artificial system, while his women,
such as Clara in “The Egoist,” Nataly in “One of Our Conquerors,”
and Diana in “Diana of the Crossways,” are clear, protesting voices
against masculine prejudices and feminine bondage. This is also the
teaching of his remarkable poem entitled “Modern Love.” George
Meredith has within the last few months added to his poetical works
a work called “Odes in Contribution to the Song of French History”
(New York: Charles Scribner’s Sons), which while having a Pindarian
sublimity of intent, a plentitude of rapt and fiery passages is too
involved and vague to constitute a real master-work. Whatever be
said of Meredith’s faults, a serious reading of his verse cannot but
persuade one that he is a poet who is distinctly virile and worth
while. Though much that he has written may have the mark of
mortality, there is much also that wears the amaranthine wreath of
eternal life, either for beauty of phrase or for profundity of philosophic
truth.

THOMAS HARDY.
Genius proves itself as much by the tenacity of its taste for one
handicraft as by anything else; it evidences itself not so much in
versatility as in volume. It is rather a mark of mediocre mentality
when a man must needs lay his hand to the doing of this and that.
Genius, as a rule, has no such itch; generally speaking, he is content
to fulfill himself in one given direction—to maintain his being in a
single sphere with a passion superior to that of his fellows. Thus it is
we seldom find after leaving the regions of facile talent writers whose
inspiration expresses itself in prose and poetical form with equal
seriousness; one is the vehicle of the divine voice, the other a mere
diversion. Goethe, it is true, has given us “Wilhelm Meister,” Victor