Purchasing

The Purchasing function is concerned with acquiring goods and services for use by the organisation. These will include, for example, raw materials and components for manufacturing and also production equipment. The responsibilities of this function usually extend to buying goods and services for the entire organisation (not just the Production function), including, for example, office equipment, furniture, computer equipment and stationery. In buying goods and services, purchasing managers must take into account a number of factors – collectively referred to as ‘the Purchasing Mix’, namely, Quantity, Quality, Price and Delivery.