The concept of purchasing and warehouse management


  • 1 Purchasing and warehouse management
  • 2 functions of purchasing and warehouse management
  • 3 Objectives of the Procurement and Warehouse Department
  • 4 References

Purchasing and warehouse management

Procurement and warehouse management is defined as the activities and operations exercised by the organization’s management in its units and divisions for profit-making purposes, whether the goods are tangible or intangible, and it can also be described as that integrated management that is responsible for planning for the purposes of obtaining the organization's requirements and needs of various items, to be stored And impose control over them, and use them in line with the objectives of the facility, and this must be done by making the best use of available resources. Procurement and warehouse management can be defined as all the activities and operations practiced on the procurement process by the administration, and it imposes its control on everything related to this matter in the facility, and this type of management enjoys great importance in the institution, therefore it is in urgent need of tightness and tight control over it, and it is indicated that it includes All areas of outsourcing, whether internal or external. [1]

Procurement and warehouse management tasks

The tasks of purchasing and warehouse management include the following: [2]
  • Drawing the appropriate policies and conditions for the purchase process, then making developments on them. The most prominent policies in this field are the purchase policy as needed, the policy of purchasing in small quantities, and the policy of purchasing in advance for storage.
  • Carrying out important studies and research in making the establishment’s decisions in the purchasing process, the most important of which is the prediction of the state of the markets and the competition cases that occur in them.
  • Reconsidering and reviewing the received orders, and ensuring their authenticity.
  • Conducting the scheduling process for all purchases, as schedules are closely related to the purchasing function.
  • Determine the levels at which the inventory is classified, namely: the upper limit, the point of demand, and the minimum.
  • Submit purchase orders.
  • Ensuring the integrity of reports legally and reviewing procurement contracts .
  • Determine the fate to which the supplied materials will reach, and that is by revealing their status, whether they are rejected, acceptable, or received.
  • Arrange the data and organize it according to specific records that contain data related to the purchases.
  • Eliminate unnecessary stored items.

Procurement and warehouse management objectives

The objectives of the Procurement and Warehouse Department include: [3]
  • Ensuring the continuation of the production process and ensuring it, by providing all the raw materials necessary for the production process to prevent delayed product flow.
  • The relentless pursuit of obtaining primary products at the best possible price, provided that the raw materials are in line with the quality of the product, to ensure that the product specifications match the company’s quality specifications.
  • Attracting suppliers and not relying on one supplier, in order for the company to gain strength in arguing for reasonable prices through tenders.
  • Create trust and close relations between the facility and the suppliers.
  • Achieving complementarity between the purchasing department and the various departments of the establishment and cooperation among them.

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