Purchasing is acquiring raw materials, finished goods or services from suppliers. This can be done either through direct purchase or through indirect means such as leasing or renting.
Purchasing is a crucial part of any business operation, as it ensures that the necessary supplies and resources are obtained promptly and efficiently. An effective purchasing strategy can help to minimize costs and optimize operational efficiency.
There are several different factors to consider when developing a purchasing strategy, including:
- The type of product or service required
- The quantity needed
- The desired quality level
- The preferred supplier(s)
- The delivery schedule
- Payment terms