Overview of Purchasing Product

Purchasing product involves the act of buying goods and services that a company needs to operate and/or manufacture products. The purchasing process can include managing purchase requisitions, purchase orders, receipts, and returns. The purchasing function may be seen as a clerical rather than a technical or managerial task, but it plays an essential role in new product development. The four types of purchase orders are Standard Purchase Orders (PO), Planned Purchase Orders (PPO), Blanket Purchase Orders (BPO), and Contract Purchase Orders (CPO). The purchasing process can vary from one organization to another, but some common steps include identifying a need, evaluating suppliers, negotiating terms and conditions, and making a purchase decision. In order to follow the correct process when purchasing products, it is important to understand the policies and procedures within an organization.