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Profit Contribution

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The function of purchasing within an organization has many aspects. One strategic area is the contribution to profit for the company. Summarize the importance of the purchasing functions and how they can contribute to the profitability of a firm.

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Summarizes the importance of the purchasing functions and how they can contribute to the profitability of a firm. The explanation is given in 376 words.

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The purchasing function is an extremely important part of the overall operational strategy of an organization. Efficient, timely and cost effective purchasing strengthens the supply chain activity in the organization. It sets up the platform for managing the entire supply chain process in an efficient manner. Strong purchasing allows an organization to obtain a seamless supply of raw materials, products or services at competitive costs. Efficient purchasing ensures that an organization never faces a shortage of supplies. Further, good purchasing also ensures that the procured products or services meet the highest quality ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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