Importance of purchasing function

Answer 1

it dertermines the purchasing specification (in terms of required quality and quantities)of the goods and services thatv need to be bought.Selecting the bestv possible supplier developing procedurss and routines to be able to do this.Preparing and conducting negotiations with the supplier in order to establish an agreement and to write up the legal contract.

Answer 2

The purchasing function is an important aspect of a company's operations as it is responsible for acquiring the goods and services needed to run the business. The purchasing process includes identifying the need for a product or service, researching potential suppliers, negotiating prices and terms, and finalizing the purchase.

There are several key reasons why the purchasing function is important to a company:

Cost savings: Effective purchasing can lead to significant cost savings for a company by negotiating favorable prices and terms with suppliers, reducing waste, and minimizing the need for inventory.

Quality control: The purchasing function is responsible for ensuring that the goods and services acquired meet the company's quality standards. This is critical to maintaining the company's reputation and customer satisfaction.

Time management: Effective purchasing can help a company manage its time more efficiently by streamlining the process of acquiring goods and services, reducing lead times and eliminating the need for emergency purchases.

Risk management: The purchasing function plays an important role in managing risk for a company by ensuring that the suppliers are reliable and that contracts include appropriate terms for quality, delivery, and payment.

Sustainability and Ethical considerations: A strong purchasing function can also ensure that the company's values in terms of sustainability, ethical and fair trade are upheld, by choosing suppliers that aligns with the company's CSR goals.

Innovation: A strong purchasing function can also drive innovation within the company by seeking out new and improved products and services from suppliers, which can give the company a competitive edge in the marketplace.

In conclusion, the purchasing function plays a vital role in the success of a company. It is not just about buying goods and services but also managing risk and driving innovation while keeping cost and quality in mind.

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