Describe the importance of and basic methods that can be used to evaluate the purchasing process. ...

Purchasing should be evaluated to recognize its importance, to determine im-provement benchmarks, to control costs, to measure and reward performance of purchasers, and to make improvements.

The process of evaluation involves determining goals, measuring actual performance, and comparing goals and performance. Then any corrective actions can be taken and the results evaluated.

Factors used to evaluate purchasing should relate to product quality and quantity, timing of deliveries, and prices paid. Other factors include relationships among departments, creative assistance by vendors, effectiveness of policies, and performance of vendors.