Purchasing Objectives: 5.- Support Organizational Goals and Objectives.

Perhaps the single most important purchasing objective is to support organizational goals and objectives. Although this sounds easy, it is not always the case that purchasing goals match organizational goals. This objective implies that purchasing can directly affect (positively or negatively) total performance and that purchasing must concern themselves with organizational directives. For example, let’s assume an organization has an objective of reducing the amount of inventory across its supply chain. Purchasing can work with suppliers to deliver smaller quantities more frequently, leading to inventory reductions. Such policies will show up as improved performance on the firm’s balance sheet and income statements. In so doing, purchasing can be recognized as a strategic asset that provides a powerful competitive advantage in the marketplace.

 

Source: Purchasing and Supply Chain Management. (Monczka, Handfield, Giunipero, Patterson)

 

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