Purchasing Relationships

2171 Words May 29th, 2012 9 Pages
Table of Contents

1) Introduction 2
2) The Purchasing Department 3
3) The Sales & Marketing Department
3.1) Roles & Responsibilities 4
3.2) Sales & Marketing’s Relationship with Purchasing 4
4) The Accounts & Finance Department
4.1) Roles & Responsibilities 5
4.2) Accounts & Finance’s Relationship with Purchasing 5
5) The Human Resource Department
5.1) Roles & Responsibilities 6
5.2) Human Resource’s Relationship with Purchasing 6
6) The Production Department
6.1) Roles & Responsibilities 7
6.2) Production’s Relationship with Purchasing 7
7) The Logistics Department
7.1) Roles & Responsibilities 8
7.2) Logistics’ Relationship with Purchasing 8
8) The Information Technology Department
8.1) Roles & Responsibilities 9
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In this way, when suppliers see that the purchasing department of an organization understand their business and value, and work well together with their Sales & Marketing department, they will be more inclined to work with the organization. This means that all parties can gain both in terms of increased value and respect towards each other.

4) The Accounts & Finance Department

4.1) Roles & Responsibilities
The Accounts & Finance Department provides detailed records of the cash flow in organizations, and also prepares the accounts as basis for financial decisions. They generally focus on providing relevant information for management decisions, and also provide daily financial functions.

The department focuses on using the financial resources of the company in order to ensure that they meet the desired level of customer satisfaction.

4.2) Accounts & Finance’s Relationship with Purchasing
The two departments work together in constructing a balanced cash strategy, improving cash flow and reducing costs on one hand while maintaining cordial relations with suppliers on the other in regards to payment terms.

They also work together in determining a balanced inventory level, taking into account operational realities and working capital strategies.

The two departments often collaborate when setting financial goals, for example with Purchasing giving advice relating to how commodity prices can fluctuate for commodity purchase expenses.
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