The Rediscovery of Modern Purchasing

Much has been written about the emerging importance and recognition of the purchasing function by senior management. Firms are adopting a number of new purchasing strategies as a means to counter increased competition from both domestic and international firms. These include things such as quality purchasing, profit purchasing, strategic purchasing, and just‐in‐time purchasing. However, a review of the purchasing function over the past 75 years shows that many of the “new” ideas are not really new. They simply have been rediscovered. The relationship of purchasing with senior management during this period has been cyclical. Purchasing becomes important when management views its role in terms other than simply obtaining materials at low prices. This usually occurs during periods of market instability. Finally, a review of early purchasing data reveals that the relationship of purchases to wages and salaries was not significantly different then from that which exists today.