The role of a purchasing department is to procure goods and services for an organization; thus, it's also referred to as the procurement department. Companies, universities and governments all have this division to make purchasing decisions on their behalf.Continue Reading
The department is a cost optimizer, always looking for ways to secure the best deal from suppliers. However, it's not just looking for low cost; it's also looking for high quality and service guarantees.
Purchasing departments generally solicit bids from potential vendors by putting out a request for quotes, or RFQ. The RFQ will specify in detail the department's requirements. Vendors are given a time frame to respond within, along with their cost quote to fulfill the requirements.Learn more about Business Resources
The employees in the marketing department of an organization are responsible for communicating to customers or clients why they need to purchase the goods or services offered. Marketing relays information to customers or clients and helps establish the overall image of the brand.Full Answer >
Purchasing refers to the process of ordering, receiving and paying for goods or services, and is part of the procurement process. Procurement is a larger organizational function for establishing fundamental requirements, performing market research, evaluating and selecting vendors, and negotiating contracts. Businesspeople often informally use the terms procurement and purchasing interchangeably, but this practice may cause confusion.Full Answer >
To build a good procurement strategy for your business, you need to clearly identify the scope of your needs for goods and services. This requires you to create a plan for approaching the process in a cost-effective manner, taking into consideration the quantities, time needed for delivery, availability of funds and a comprehensive budget.Full Answer >
An organization’s purchasing department bears the responsibility for procuring materials, supplies and services, as Reference for Business explains. Employees in the purchasing department are called buyers, supply managers or purchasing agents. Purchasing means obtaining appropriate materials, services and technology from the right source, in the right quantity and at the right time.Full Answer >