purchasing


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
Related to purchasing: Purchasing power parity

Buy

To take ownership of some asset in exchange for some monetary remuneration. Buying may take any of several forms. In a cash purchase, the buyer gives cash or a cash equivalent immediately in exchange for the asset. In a credit sale, the buyer takes ownership immediately in exchange for future payment, often with interest. An example of buying is a simple transaction involving widgets. If the buyer is willing to pay $2 per widget and the seller wishes to sell 100 widgets, then the seller gives to the buyer 100 widgets and, in their place, receives $200. See also: Sale.

purchasing

the business function which is involved in procuring raw materials, components, finished goods and capital equipment, ordering and acquiring supplies of these items at competitive prices. Purchasing is charged with the task of maintaining adequate STOCKS of raw materials, components or finished goods, and placing orders to top up stocks as necessary. This involves seeking out and evaluating suppliers in terms of the quality of their offerings, reliability, delivery times and after-sales service, as well as prices. For standard commodities, industrial buyers will generally buy largely on price, seeking quotations or tenders from suppliers. The buyer can choose to place large orders with just one or two suppliers to secure BULK-BUYING price discounts or he or she may choose to spread orders among several suppliers to diversify supplies and avoid the risk of disruption to production if a single supplier defaults. Finally, industrial buyers need to keep up to date with materials and product prices and new materials becoming available in order to provide intelligence to production and marketing colleagues. See BUYING PROCESS, BUYING CENTRE, MATERIALS MANAGEMENT, JUST IN TIME (JIT) SYSTEM, APPROVED SUPPLIER, NATIONAL ACCOUNT, DECENTRALIZED PURCHASING, SOURCING. See also FOUR O'S OF PURCHASING.
References in periodicals archive ?
Purchasing managers must accept responsibility for purchase orders being correct and complete.
Having worked for the public sector for 35 years, Jackson says she's found that micro purchases of $2,500 or less are generally routed through the purchasing card.
The elevation of the Purchasing department to a strategic function represents a major advance in the status of a department tong looked on as a bureaucratic necessity that faculty and staff tried to maneuver around.
Some customers say they have a unique way of managing their purchasing workflow.
CNAD also holds bimonthly conference calls with as many as 200 purchasing officers (from government and Fortune 500 companies) in 30 states.
As for the staffing required, Snarr says that the facility should decide whether across-the-board purchasing authority is designated to one person or whether each department does its own.
The district's Purchasing Branch repeatedly informed facilities officials that the purchasing procedures were ``contrary to policy,'' ``not good business practice'' and ``could be illegal,'' the report states.
To accommodate plastic, companies have had to relax some of the traditional purchasing controls, drawing criticism from accounting departments and from those responsible for ensuring that company purchases are made from a select group of "preferred" suppliers.
8) Traditionally, procurement card programs have focused on "high volume/low dollar" transactions which account for a large proportion (by number) of an enterprise's purchase transactions, but a relatively small amount of the purchasing volume (by dollar) and would, therefore, have relatively high "per transaction" costs under the traditional purchasing process.
In 1992, because of the large volume of refinancings, Fannie Mae and Freddie Mac would have had difficulty in meeting a low-income goal of 30 percent solely by purchasing single-family mortgages.
Gateway offers your organization or co op an electronic catalog, and allows groups to form their own purchasing processes.
A purchasing entity structure should not cause any concern from the states' perspective, because sales and use taxes are form-driven; the states will subject inter-company transactions to sales tax to the same extent as transactions between unrelated entities.