Purchasing Processes Definition
In business, the purchase process is the process of ordering and receiving goods or services. The purchase process can be divided into two parts: the requisitioning of goods or services, and the actual purchasing of goods or services.
The requisitioning of goods or services is the first part of the purchasing process. This is when a company decides that it needs a certain good or service, and puts in a request for that good or service. The request can come from anywhere in the company, but it usually goes through the purchasing department.
Once the requisition has been made, the purchasing department will begin to look for vendors who can provide the requested good or service. The purchasing department will evaluate different vendors based on price, quality, and other factors. Once a vendor has been selected, the purchasing department will negotiate a contract with that vendor.
The second part of the purchasing process is actually buying the goods or services. This usually happens after a contract has been signed between the company and the vendor. The company will make an order with the vendor, and then pay for the goods or services once they have been received.
The purchase process is an important part of any business. It is important to have a clear understanding of both parts of the process in order to ensure that goods and services are obtained in a timely and efficient manner.
