Identifying a Need
The Starting Point
In a small business, making a decision to purchase a package of paper can be dealt with simply. You load the last package of paper into the printer, and then stop at a stationery supplier on the way home and pick up a box. However, full retail price is probably not how much you’d like to spend, is it? This is part of the reason that having people knowledgeable about procurement is essential.
The need for a purchase normally starts in an operating department or the inventory control section. The procurement department gets notified of a need either when they receive a purchase requisition or when there is a notice on the material requirements planning (MRP) schedule.