Table of Content
1. Introduction
2. Purchasing Management
2.1 Functions of Purchasing Management
2.2 Objectives of Purchasing Management
2.3 Major Principles of Purchasing Management
2.4 Importance of Purchasing Management
3. Material Management
3.1 Functions of Material Management
3.2 Objectives of Materials Management
4. How Purchasing and Materials Management can Contribute to the National Economy?
5. Conclusion
6. References
,1. Introduction
As aforementioned, purchasing and material management are important aspects and play a significant
role to an organization’s competitive edge. Purchasing is a function that involves sourcing goods and
services from external sources to a firm. It is prudent that the organization purchase quality materials
and in good quantities to ensure that there is no disruption of the organization’s daily activities. Their
basic function is procuring the inputs for production function. This function encompasses suppliers in
the market external to the organization and several internal to the organization.
Till recently, the purchasing process simply involved placing an order with the supplier who offered the
lowest price. Nowadays, increase in competition and market demand and scarcity of resources have
forced organizations to re-examine their purchasing activities. The purchasing department functions
have expanded considerably and include activities such as verifying the credentials of suppliers,
inspecting the quality of the material to be purchased, ensuring the timely delivery of the material, etc.
2
, 2. Purchasing Management
Purchase Management is a function of materials management in a company. Their basic function is
procuring the inputs for production function. This function encompasses suppliers in the market
external to the organization and several internal to the organization.
Purchasing management is concerned with the planning and controlling of the acquisition
of suppliers' goods and resources, to fulfil the administrative and strategic objectives of the
organization. In practice, purchasing managers have deal with both customers internal as
well as external. He/she has responded creatively to internal customers' need on the one
hand and to maintain a mutually profitable relationship with suppliers on the other. This
dual-role perspective of purchasing management has, in recent years, been increasingly
recognized as comprising complex tasks in the integration of internal/external and
upstream/downstream supply chain management activities. (Fung, 1999) The part of supply
chain management that focuses on the management of inbound goods and services into a
firm.
3
1. Introduction
2. Purchasing Management
2.1 Functions of Purchasing Management
2.2 Objectives of Purchasing Management
2.3 Major Principles of Purchasing Management
2.4 Importance of Purchasing Management
3. Material Management
3.1 Functions of Material Management
3.2 Objectives of Materials Management
4. How Purchasing and Materials Management can Contribute to the National Economy?
5. Conclusion
6. References
,1. Introduction
As aforementioned, purchasing and material management are important aspects and play a significant
role to an organization’s competitive edge. Purchasing is a function that involves sourcing goods and
services from external sources to a firm. It is prudent that the organization purchase quality materials
and in good quantities to ensure that there is no disruption of the organization’s daily activities. Their
basic function is procuring the inputs for production function. This function encompasses suppliers in
the market external to the organization and several internal to the organization.
Till recently, the purchasing process simply involved placing an order with the supplier who offered the
lowest price. Nowadays, increase in competition and market demand and scarcity of resources have
forced organizations to re-examine their purchasing activities. The purchasing department functions
have expanded considerably and include activities such as verifying the credentials of suppliers,
inspecting the quality of the material to be purchased, ensuring the timely delivery of the material, etc.
2
, 2. Purchasing Management
Purchase Management is a function of materials management in a company. Their basic function is
procuring the inputs for production function. This function encompasses suppliers in the market
external to the organization and several internal to the organization.
Purchasing management is concerned with the planning and controlling of the acquisition
of suppliers' goods and resources, to fulfil the administrative and strategic objectives of the
organization. In practice, purchasing managers have deal with both customers internal as
well as external. He/she has responded creatively to internal customers' need on the one
hand and to maintain a mutually profitable relationship with suppliers on the other. This
dual-role perspective of purchasing management has, in recent years, been increasingly
recognized as comprising complex tasks in the integration of internal/external and
upstream/downstream supply chain management activities. (Fung, 1999) The part of supply
chain management that focuses on the management of inbound goods and services into a
firm.
3
