What is a purchasing department and what are its functions in a business organization? The purchasing department of a company is one of the many vital departments of a company. The purchasing department is the department that handles of all items that are needed by the company or organization. Another name for the purchasing department is the procurement department or the buying department.
The functions of the purchasing department
- The most obvious function of the purchasing department in every business or organization is being in charge of buying all items needed by the business or organization.
- The purchasing department interacts with suppliers, receives quotations from them and places orders from them.
- The department is responsible for testing every item bought in order to make sure that they are in good condition.
- Materials bought by the purchasing department are stored by them until they are needed by the various departments and offices of the organization.
- The purchasing department makes sure that the right commodities or items are bought.
- It also makes sure that the right quantity of goods is purchased.
- Having bought the commodities or items, the purchasing department supplies these items to other departments of the company or organization. Simply put, it is in charge of distributing the items within the company.
- After placing orders for the goods from suppliers, the purchasing department checks the deliveries to make sure that they tally with quotation and orders.
These are some of the basic functions of the purchasing department in every company or organization. The purchasing department is normally headed by a purchasing manager. The purchasing manager is sometimes also referred to as the chief buyer.