It refers to the activity of acquiring goods or services to accomplish the goals of an organization. It is the procurement of materials and other requirements from certain external agencies. It includes activities like deciding what to buy, where to buy, when to buy, how much to buy and at what prices to buy.

1. Purchasing
Prof. Afsana Salam

2. Meaning
•It refers to the activity of acquiring goods
or services to accomplish the goals of an
organization. It is the procurement of
materials and other requirements from
certain external agencies.
•It includes activities like deciding what to
buy, where to buy, when to buy, how

3. Definition
•According to Westing, Fine and Zenz “Purchasing
is a managerial activity that goes beyond the
simple act of buying. It includes research and
development for the proper selection of materials
and sources, follow-up to ensure timely delivery;
inspection to ensure both quantity and quality; to
control traffic, receiving, storekeeping and
accounting operations related to purchases.”

4. Objectives of purchasing department
• To avail the materials, suppliers and equipment at the
minimum possible costs
• To ensure the continuous flow of production
• To increase the asset turnover
• To develop an alternative source of supply
• To establish and maintain the good relations
• To achieve maximum integration with other department
• To train and develop the personnel
• Efficient record keeping and management reporting

5. Steps in Material Purchasing Process

6. Methods of purchasing

7. Thank You