PURCHASING: OBJECTIVES

A simplified defination of the objectives of PURCHASING is stated right below.

TO PROVIDE INPUT MATERIALS;

• OF THE RIGHT TYPE.
• OF THE RIGHT QUALITY.
• IN THE RIGHT QUANTITY.
• AT THE RIGHT TIME.
• AT THE RIGHT PRICE.
• FROM THE RIGHT SOURCE.

The process of buying, sourcing and shopping is also effective with the use of these objectives. So, from a small home plan to a huge plant plan, the use of these objectives make the home or a manufacturing plant resilient at all time.

Experienced buyers prefer to state their objectives and responsibilities as follows:

1. To maintain a continuous supply of input materials.
2. To avoid idle machine time due to lack of input materials.
3. To minimize input materials inventory.
4. To prevent input materials waste.
5. To find other sources of the same input materials.
6. To purchase cheaper input materials of the same quality.
7. To safeguard firm's competitiveness by keeping costs to proper minimuns.