Purchasing In Supply Chain Management

Purchasing in supply chain management is the process of obtaining the necessary goods and services required to sustain an organization’s operations. It involves seeking out vendors, negotiating terms, and allocating resources to acquire the necessary products and services while developing an effective supplier network.
By taking a strategic approach to purchasing, organizations can maximize their financial resources and optimize their value chain – leading to greater efficiency, cost reduction and improved customer satisfaction. Careful consideration must be given to the entire purchase process, from selection to order placement and delivery, to ensure that investments are wisely spent and that suppliers are reliable.