Purchasing

Purchasing is the activity of ordering and paying for goods or services. It commonly includes requesting prices, issuing purchase orders and checking deliveries and invoices against what was agreed.

Purchasing staff commonly check requisitions, confirm approved suppliers and prices, issue orders, monitor delivery and resolve invoice differences. The work translates an identified need into an actual transaction. Accuracy in quantities, units of measure and delivery instructions matters because small errors can create stock shortages or unexpected charges.

For example, a buyer ordering 20 cases must establish whether each case contains six or twelve units before raising a purchase order. Procurement has a broader role in deciding requirements and supplier strategy; purchasing is chiefly concerned with executing and administering the agreed buy correctly.