26B : The Role of The Purchasing Department (not Fin)

Question 1

What is purchasing

Answer 1

Purchasing involves buying materials, machinery ,tools used by businesses
It will ensure:

Question 2

What questions should the purchasing department ask a supplier

Answer 2

• Can the price be negotiated : discounts on bulk orders , discounts for regular customers

• How can the quality of the raw materials be assured: look for un ISO 9000 quality certificate

• Can the supplier change quickly to meet the demands of the company
e.g. Changes To raw materials to suit new products

Question 3

What should the purchasing department need to consider when operating

Question 4

How is purchasing organized

Answer 4

Purchasing is organized in one of two ways :

• centralized purchasing:
Centralized purchasing is managing all buying through one team for consistency and cost savings.

Decentralized purchasing :