The official business definition of Purchasing Process is the process of acquiring goods and services from external sources for the purpose of using them in the production of goods and services for sale. It involves the selection of vendors, the negotiation of contracts, the ordering of goods and services, and the receipt and payment of invoices. It is an important part of the overall supply chain management process, as it ensures that the company is able to acquire the necessary resources to meet customer demand. The purchasing process is also responsible for ensuring that the company is able to purchase the goods and services at the most competitive prices. Additionally, the purchasing process is responsible for ensuring that the company is able to obtain the best quality goods and services at the most reasonable prices. This is done by evaluating vendors, negotiating contracts, and selecting the most suitable suppliers. The purchasing process is also responsible for monitoring the performance of vendors and ensuring that the company is able to get the best value for its money.
