Focus on
Lead in
Purchasing department must develop and maintain close relationships with other functional groups within the organization which may include manufacturing, marketing, technology and finance. Effective communication with these departments is essential and necessary for the whole organization to keep as competitive. For example, if a supplier’s components are defective and causing problem for manufacturing, then the purchasing department must work with the supplier to improve their quality.
Module Two Professional English of Logistics
Chapter Five Purchasing
Chapter Six Distribution
Objectives
To hasing To understand the role of the purchasing To be familiar with the Purchasing Process Communication skill in purchasing
5.1 Definition of Purchasing Purchasing is not simply buying goods and services, and it is a group of functional activities associated with buying the goods and services required by organizations. These activities include supplier identification and selection, buying, negotiation and contracting, supply market research, supplier measurement and improvement, and purchasing systems development, etc.
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In order to ensure the current suppliers are competitive, purchasing must identify new suppliers and improve or replace the existing suppliers who are not meeting the requirements. That means that purchasing needs to keep abreast of the newest conditions in supply market.
5.2 Role of Purchasing The most important and traditional role of purchasing is to meet the requirements of internal users. In the past, the emphasis was laid to buy what firms need from the right source, at the right price, in the right quantity, to the right internal customer and at the right specifications. However, with the increase of outsourcing, firms are more and more relying on external suppliers to provide not just materials and products, but also information technology, service, and even logistics. Therefore, to ensure the uninterrupted flow of high-quality goods and services is becoming more critical for modern enterprises.
5.2 Role of Purchasing
Purchasing department must develop and maintain close relationships with other functional groups within the organization which may include manufacturing, marketing, technology and finance. Effective communication with these departments is essential and necessary for the whole organization to keep as competitive. For example, if a supplier’s components are defective and causing problem for manufacturing, then the purchasing department must work with the supplier to improve their quality.