The objectives or goals of the purchase department can be found on the website.
The purchasing department is responsible for buying the goods and services a company needs to run its business at a price that supports the company's bottom line.It's important since delays in purchasing could stop the production process and result in empty shelves for customers.
The purchasing department is in charge of the company's procurement process.It is responsible for buying all the goods, equipment, materials and services the company needs to manufacture items and offer goods for sale in a timely and organized manner.
The department is in charge of setting the company's procurement strategy.This is a high-level function.It involves assessing the company's long-term needs for goods, services and materials, and setting budgets by department or location based on the current needs and projected future growth.
The purchasing team has a goal of cost efficiency.With its strategic hat on, the department will check out all the suppliers in the market and weigh them against each other in terms of quality, reputation, service delivery, capacity and cost.If a supplier goes bust, what happens to the business?What is the contingency plan for the security of supply?
The purchasing department can analyze the pros and cons of using domestic versus foreign suppliers, and make decisions about whether the company should manufacture goods itself or buy them from external suppliers.
The purchasing department is responsible for ordering goods and services, receiving inventory, administering supplier contracts, and dealing with quality control issues.The goal is to keep supplies flowing through the business so there are always enough resources for people to perform their jobs and enough products on the shelves when customers want to buy them.The department will keep a close eye on supplier contracts to make sure they are delivering the best value.
Buying good-quality products at the right price is an essential role of the purchasing department.There are many reasons a company might choose a more expensive supplier if his product is better quality, or if he has shorter lead times or a lower defect rate.The purchasing department will always try to maximize profitability.