Identify internal and external factors that impact the purchasing process.

Purchasers must consider the skills and abilities of employees when buying decisions are made. They must ensure the operation can pay for products and services on a timely basis and that quality standards will be met. The use of decentralized or centralized purchasing affects the flow of information throughout the operation, and use of technology impacts the process as well.

External factors that impact purchasing decisions relate to customers, distribution channels, global trade conditions, governmental regulations, environmental concerns, and competitors.