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    The traditional role of purchasing is to purchase materials conforming to specifications such as physical dimensions and the lowest bids. Most organizations still view purchasing as a tactical one with a short sighted approach. The tactical role of purchasing is underlined by the fact that most firms don’t have purchasing function in the corporate boardroom.

    Purchasing as a tactical function is confined to clerical processes such as bid invitation, order management and payment. But purchasing is a complex function that manages suppliers for operation, new product launches and market planning. The strategic role envisages supplier involvement for increasing the efficiency of the business itself. This transition from tactical to strategic to engage suppliers is a long term process and there

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    In today's competitive world, people no longer have to book items days in advance in order to buy a product. Most items available from a number of competing manufacturers, are offered at similar prices, and may have identical functions and advantages. There are many types
    l view purchasing as a tactical one with a short sighted approach. The tactical role of purchasing is underlined by the fact that most firms don’t have purchasing function in the corporate boardroom.

    Purchasing as a tactical function is confined to clerical processes such as bid invitation, order management and payment. But purchasing is a complex function that manages suppliers for operation, new product launches and market planning. The strategic role envisages supplier involvement for increasing the efficiency of the business itself. This transition from tactical to strategic to engage suppliers is a long term process and there

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    g function in the corporate boardroom.

    Purchasing as a tactical function is confined to clerical processes such as bid invitation, order management and payment. But purchasing is a complex function that manages suppliers for operation, new product launches and market planning. The strategic role envisages supplier involvement for increasing the efficiency of the business itself. This transition from tactical to strategic to engage suppliers is a long term process and there

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    ment. But purchasing is a complex function that manages suppliers for operation, new product launches and market planning. The strategic role envisages supplier involvement for increasing the efficiency of the business itself. This transition from tactical to strategic to engage suppliers is a long term process and there
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    involvement for increasing the efficiency of the business itself. This transition from tactical to strategic to engage suppliers is a long term process and therefore considerable change management processes.

    The objective of strategic purchasing is to manage suppliers to reduce cost of materials and engage them in downstream processes and also to reduce the cost of purchasing. The implementation of IT in purchasing enables automation of many of the processes such as bid management and evaluation, order management and payment processes such as handling of invoices. The automation reduces errors in the purchase to pay cycle and increases process efficiency.

    With increased competition and globalization, strategic purchasing involves sourcing supplies at the global level to reduce costs

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