<P> Because of production companies purchase nowadays about 70% of their turnover, and service companies purchase approximately 40% of their turnover . </P> <P> The purchasing management department ensures that all goods, supplies and inventory needed to operate the business are ordered and kept in stock . It is also responsible for controlling the cost of the goods ordered, controlling inventory levels and building strong relationships with suppliers . </P> <Ul> <Li> To purchase the required material at minimum possible price by following the company policies . </Li> <Li> to keep department expenses low . </Li> <Li> Development of good & new vendors (suppliers). </Li> <Li> Development of good relation with the existing suppliers . </Li> <Li> training & development of personal employees in department . </Li> <Li> to maintain proper & up to date records of all transactions . </Li> <Li> Participating in development of new material and products . </Li> <Li> to contribute in product improvement . </Li> <Li> to take Economic "MAKE OR BUY" decisions . </Li> <Li> to avoid Stock - out situations . </Li> <Li> to develop policies & procedure . </Li> <Li> to maintain of ROL </Li> </Ul> <Li> To purchase the required material at minimum possible price by following the company policies . </Li>

Role of purchasing and supply department in an organization
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