Purchasing

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Definition: Purchasing

Purchasing
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Full Definition of Purchasing

Purchasing in a company is the department that buys raw materials and product.

Emerging Trends

Managerial revolution: Strategic sourcing

  • Elevation of purchasing to a strategic position in the firm
  • Sourcing strategies that are aligned with the strategy of firm and supply chain
  • Supply base optimization; supplier relationship management and selective strategic alliances
  • Early involvement of suppliers in product design
  • Better, cross-functional integration of purchasing with other functions

Technological Revolution: E-procurement

  • Use of IT such as EDI, internet, intranet, extranets
  • Greater efficiency in ordering & transaction processing, within the firm as well
  • Effective information sharing with others in the supply chain
  • Supports strategic, global sourcing

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/purchasing/
Modern Language Association (MLA):
Purchasing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 18, 2024 https://payrollheaven.com/define/purchasing/.
Chicago Manual of Style (CMS):
Purchasing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/purchasing/ (accessed: May 18, 2024).
American Psychological Association (APA):
Purchasing. PayrollHeaven.com. Retrieved May 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/purchasing/

Definition Sources

Definitions for Purchasing are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 0 Views.