Purchasing

Purchasing

The organization needs to ensure that purchased products and services meet purchasing requirements. The purchasing group must establish criteria for how they evaluate and choose suppliers. These criteria must be based on the suppliers’ ability to provide products and services that meet order specifications, especially product and service quality requirements.

The extent of the controls depend on the importance of the purchased goods in the finished product. Finally, records must be kept showing how purchased products and services were evaluated.

Clearly describe on purchase orders the product or service being ordered. Consider including the following specifications:Review and approve purchasing requirements before sending them out.Carry out a plan for verifying that purchased services and materials are adequate, i.e. meet purchase specifications.