Definition of Purchasing:
The activity of acquiring goods or services to accomplish the goals of an organization.
The major objectives of purchasing are to (1) maintain the quality and value of a companys products, (2) minimize cash tied-up in inventory, (3) maintain the flow of inputs to maintain the flow of outputs, and (4) strengthen the organizations competitive position. Purchasing may also involve (a) development and review of the product specifications, (b) receipt and processing of requisitions, © advertising for bids, (d) bid evaluation, (e) award of supply contracts, (f) inspection of good received, and (g) their appropriate storage and release.
How to use Purchasing in a sentence?
- Mary worked in the purchasing department. She was responsible for acquiring the materials needed to make all the products.
- Business can use purchasing as a type of competitive strategy as a way to get ahead of the competition by buying any resources it can not manufacture itself.
- He had been purchasing a lot of items recently on the internet and we all wondered how he was getting so much money.
Meaning of Purchasing & Purchasing Definition