Operations, Logistics and Supply Chain Management

Аннотация

Purchasing is the function in a firm responsible for the professional management of a firm’s interface with the supply market, to ensure its supply with the necessary goods and services provided by other organizations, i.e. suppliers. Industrial firms spend more than half of their turnover on supplies, which is why the purchasing function has become a central success factor for modern firms. Purchasing can be distinguished into strategic sourcing (supply planning, supplier selection and contracting) and operative procurement (material ordering, expediting and paying). The activities of a purchasing department can be organized in a purchasing year cycle, which repeats on an annual basis.