Meaning of Purchasing (2024)

FAQs

What is the best definition of purchasing? ›

What is Purchasing? Purchasing is the organized acquisition of goods and services on behalf of the buying entity. Purchasing activities are needed to ensure that needed items are obtained in a timely manner and at a reasonable cost.

: to obtain by paying money or its equivalent : buy. b. : to acquire (real estate) by means other than descent. c. : to obtain by labor, danger, or sacrifice.

Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals.

In this blog post, we'll explore three main types of purchasing – direct, indirect and services – and provide insights on how to determine which one suits your company's needs. So sit tight and let's dive into the world of procurement together!

Both 'buy' and 'purchase' refer to the act of acquiring something in exchange for money or other forms of payment and are sometimes used interchangeably. However, 'buy' is more general and commonly used while 'purchase' is typically used for larger and more expensive items and is a more formal term.

In this section, you'll learn about three basic buying princi- ples that can help you and all consumers achieve this goal. They are: (1) gathering information; (2) using advertising wisely; and (3) comparison shopping.

as "act of acquiring, procurement." Meaning "that which is bought" is from 1580s. The sense of "hold or position for advantageously applying power" (1711) is extended from the nautical verb meaning "to haul or draw (especially by mechanical power)," often used in reference to hauling up anchors, attested from 1560s.

Definitions of purchase. verb. obtain by purchase; acquire by means of a financial transaction. “The family purchased a new car” synonyms: buy buy.

acquirement, bargain, booty, buy, gain, property, steal.

Purchasing is typically responsible for selecting suppliers, negotiating and administering long-term contracts, monitoring supplier performance, placing orders to suppliers, developing a responsive supplier base, and maintaining good supplier relations.

Why is purchasing important? ›

The purchasing process is important because it gives businesses a structured way to address their needs. It also allows for more informed financial planning. An effective purchasing process can help prevent theft, fraud or irregular spending since it requires documenting all business transactions.

Once the need is determined, the company will then choose a vendor from which to purchase the goods or services. For example, the bakery would purchase flour from a vendor who meets their specifications, such as pricing, quantity available, flour type, and delivery terms.

Personal Purchasing: This involves individual consumers buying goods and services for their use. It's the most familiar form of purchasing, encompassing everyday items and services. Mercantile Purchasing: This type refers to transactions made by retailers or wholesalers who buy products to resell them.