Ask any manager at a large organization why the purchasing department matters, and the first factor he will mention will probably be costs. But cost control, though a core competency, is far from the only way purchasing affects firm performance.

Every contract signed with a supplier represents a considerable amount of trust on the part of the buying firm. It’s the purchasing department’s job to ensure that trust is invested wisely, not squandered on the unworthy. Therefore, purchasing is obliged to be the organization’s eyes and ears within the supplier environment.

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