THE IMPORTANCE OF PURCHASING IN AN ORGANIZATIONS

                 Purchasing is very important nowadays. Without purchasing in an organization, we cannot make a better and proper work. In definition, purchasing is known as a medium between the companies to buy a goods or services. Purchasing also is an activity of acquiring goods or services to accomplish the goals of an organization. So, based on the definition above we know that purchasing is essential in the organization. For example, the company needs a purchasing manager to buy raw materials. A purchasing manager will evaluate suppliers on the base of price, quality, service support, availability, reliability and selection. Then, they research the reputation and history of the suppliers and may advertise anticipated purchase actions in order to solicit bids. So that, the purchasing manager will give big advantages to the company in terms of save cost, increase profit and so on.

            There are many importance of purchasing in the organization. With the purchasing, the company can centralize or it also can be decentralized depend its own need.  

Centralized is main company must purchase the same product to the entire branch at the other country.

The importances of purchasing in the centralized company are:

                    I.            It can cut cost through purchasing department

                  II.            It also can make purchasing manager easy to purchase

                III.            Get quantity discount

Decentralized company is each department in a company buy goods on their own.

The importances of purchasing in decentralized company are:

                    I.            Cut transportation and warehouse costs

                  II.            Make employee more independent

                III.            Save time for purchasing manager

         So that, it is prove that purchasing are important nowadays. All of this are relating with purchasing function. Purchasing consists of many tasks within the business entity. The tasks includes of materials, supplies and services. Purchasing agent also will represent the company in negotiations with suppliers in order to perform duties, purchasing must be given authority when a purchasing manager is appointed. So, this is shown that purchasing are importance and will give a big impact or profits to an organizations. Without purchasing, an organizations can not run their business properly and difficult to gain profits.