The official business definition of Purchasing in Material Management is the process of acquiring goods and services from an external source. It involves the selection of vendors, the negotiation of contracts, the selection of products, and the coordination of the activities of purchasing personnel, suppliers, and other staff within the organization. Purchasing is an important part of the overall supply chain management process, as it is responsible for ensuring that the right goods and services are obtained at the right price, at the right time, and in the right quantity. Purchasing is also responsible for the negotiation of contracts, the selection of vendors, and the evaluation of suppliers. It is also responsible for monitoring the performance of suppliers and negotiating price and delivery terms. In addition, Purchasing is responsible for the maintenance of records and the evaluation of suppliers, as well as the management of the supply chain.
