Purchasing management

• Purchasing is the function of buying Goods & Services from External Source to an Organisation.
• Purchase department buys Raw Materials, Spare parts, services etc. as Required by the company or Organisation.
• Purchase management is One of the most Crucial Area of the Entire Organisation. Thus, Needs Intensive management.
• Purchase is the Main Activity in Area of Material management.
• Purchasing management is a department in an organization responsible for purchasing activities.
• Purchase is Most Important Function in any Organisation.
• Purchase is the first element which affects the product cost.
• Purchase management decides profitability of the Company.
• Purchasing management also covers the areas of outsourcing and insourcing.
• Purchasing management is the management of purchasing process, and related aspects in an organization.

Because of production companies purchase nowadays about 70% of their turnover, and service companies purchase approximately 40% of their turnover.

The purchasing management department ensures that all goods, supplies and inventory needed to operate the business are ordered and kept in stock. It is also responsible for controlling the cost of the goods ordered, controlling inventory levels and building strong relationships with suppliers.