The role of a purchasing department is to procure goods and services for an organization; thus, it's also referred to as the procurement department. Companies, universities and governments all have this division to make purchasing decisions on their behalf.Know More
The department is a cost optimizer, always looking for ways to secure the best deal from suppliers. However, it's not just looking for low cost; it's also looking for high quality and service guarantees.
Purchasing departments generally solicit bids from potential vendors by putting out a request for quotes, or RFQ. The RFQ will specify in detail the department's requirements. Vendors are given a time frame to respond within, along with their cost quote to fulfill the requirements.Learn more about Business Resources
According to Investopedia, an Enterprise Resource Planning (ERP) management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance and human resources. In contrast, a Manufacturing Resource Planning (MRP) is a system designed to centralize, integrate and process information for effective decision making in scheduling, design engineering, inventory management and cost control in manufacturing.Full Answer >
The finance department plays a huge role in business because that's where the money is. The finance department knows how much money is needed to pay vendors, secure clients, cover bills and pay employees. This department is also in charge of filing taxes, keeping up with the current value of assets, and knowing how much cash flow the company has at any given time.Full Answer >
A procurement officer is responsible for overseeing purchasing and supply management for an organization. A person in this role may have a wide variety of duties.Full Answer >
From a business perspective, stakeholders are important because they affect major changes within a company, from financial decisions to how an organization runs. Stakeholders can be investors, employees, board members or partners, notes the Chartered Quality Institute. A stakeholder is someone or a group of people that are directly or indirectly affected by an organization's actions, or an individual or group that has a direct role in shaping a policy, business practice or decision that negatively or positively helps or hinders a business.Full Answer >