Purchasing/Materials Management

All organizations use material inputs they may account for as much as 90 per cent of the value of the output or for as little as 1 per cent. The effort devoted to purchasing and materials management should reflect this relative importance.

The purchasing function includes researching, analysing, and selecting suppliers. Negotiation of contracts or other buying agreements are made to assure that the firm obtains the right quality at the right time, in the right place and at the right price. The purchasing manager is responsible for vast amounts of the company's money and failure to achieve any of these objectives will result in a less profitable operation.