ABSTRACT

This chapter explains the reasons why purchasing is no longer an administrative, or clerical, responsibility, but a critical and strategic priority for companies. It examines why purchasing is seen as part of supply chain management and the implications of the purchasing–supply chain management relationship. The chapter reviews purchasing and supply chain management in relation to related concepts such as sourcing and procurement. It explores the criticality of the sustainability challenge and how it affects purchasing and supply chain management. The chapter argues that the need for sustainability to become an integrated part of purchasing and supply chain management rather than a separate add-on consideration. It also explains the underlying theoretical perspective and structure of the book and traces the development of purchasing from an administrative, tactical function within companies to a managerial, strategic function. The chapter also presents an overview of the key concepts discussed in this book.