Group Assignment

Name ID #
Muhammad Husnain Khurshid 33956
Prakash Naik 34170
Muhammad Shaheryar 46716
Shahzaib Ansari 37477

Question
Define purchasing and also write the functions of purchasing. (Assignment7). (Group
based)
Answer
The classic definition of purchasing defines the objectives as:
To buy materials at the right quality, in the right quantity from the right source delivered to the
right place at the right time, at the right price.
The functions of purchasing
From a procurement perspective, the idea of purchasing has become increasingly popular in
recent years. The purchasing is the consolidation of all of an organization’s procurement
information into one area. The focus in the past has been on the functionality of tools in
procurement such as e-requisition and e-Rfx. While these are valuable tools, they cannot provide
any meaningful benefit if the internal customer of procurement does not engage with the system.
We see three benefits in an intuitive, easy-to-use buyer portal.

1. Integration

By bringing all the different buying channels together into one place and providing seamless
links to all, the user is more easily drawn into using the portal and into following the established
procurement processes and policies. The buyer portal becomes a one-stop procurement shop for
the user.

2. Building a Relationship

User satisfaction and greater engagement among procurement’s end customers within the
organization. An effective and well-designed purchasing strategy can provide the basis for
ongoing dialogue between procurement and its customers.

3. Simplicity
A key focus of the purchasing should be on enabling users to make their request in compliance
with policy as quickly and as painlessly as possible.

The exact make-up of any organization’s purchasing strategy will vary, the five key functions
define the purchasing are as,

 Search - a single search function directing users to the appropriate information.

 Help - available when and where the user needs it.
 Procurement - integration with relevant e-procurement tools.
 Category cards - pages which give all information needed for buying.
 Site links - re-directing users if they need to use another process.

Procurement organizations should consider an portal as one of the key tools to achieve control
over third-party spend and make the user’s buying experience easy and satisfying. A well-
designed and properly deployed buyer portal can play a significant role in fostering compliance,
reducing the organization’s overall spend and reinforcing the appreciation of the procurement
function.