Purchase procedure

What is the Purchasing Process?

A better synonym for the purchasing process is the procure-to-pay (P2P) process. The purchasing process is, at its most basic, as simple as conducting a transaction.
The primary benefit of a formal process for purchasing is avoiding waste due to fraud, rogue spend, theft, and other financial pitfalls that accompany undocumented, non-optimized buying habits.

Purchasing process is also important to:

1. Creating and efficient and effective buying process for not just direct spend (e.g., raw materials) but indirect spend (e.g., office supplies, IT services, etc.).
2. Successful supplier relationship management.
3. Optimal supply chain management and strategic sourcing (for both cost savings and value).
4. Streamlining the procurement cycle and all its sub-processes.
5. Providing a solid audit trail for internal and external review.
6. Establishing a model for business process management that can be applied across your entire organization.