The evolution of the purchasing function

Abstract

The purpose of this paper is to identify the major changes that have taken place in the role of the purchasing function in organizations over the last two decades. These are as follows: The purchasing function is taking on a more strategic role in many organizations. An emerging view is that the purchasing function should be on an equal level of importance in the organization with marketing, human resource management, finance and the production/operations functions. Purchasing is moving away from the traditional adversarial approach between the buyer and supplier towards collaborative relationships. The make or buy decision is being given more consideration because of its strategic implications. Purchasing plays a key role in corporate strategy through the selection and development of suppliers that support the organization's competitive position. An understanding of the true cost implications of the purchasing process can make a significant contribution to the achievement of lower costs. The changing role of the purchasing function has implications for the training and development of the purchasing professional. © 1997 John Wiley & Sons, Ltd.

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