We start by analyzing the substantial difference between roles and responsibilities. Identifying the difference between “Purchasing” and “Buying”, which are perceived as synonyms in everyday language.
Analyzing the position of salespeople within the company: their involvement in explaining the reasons for purchase and the characteristics of goods/services.
The real gain for the company is procurement optimization, rather than sales, margins, profit or revenues.
How aware is the company of the role of the purchasing department in making profit?
The “buyer” can purchase from any supplier (“off-the-shelf products”).
Conversely, the purchasing department establishes a relationship with suppliers of customized/niche and off-the-shelf products, and focuses on the importance of the relationship for the future.
The purchasing department usually manages varied and specific relations based on personal relationship and trust with all market segments. In this respect it may be compared to a diplomatic institution.
Buyers and purchasing department differ in their function and in the way they manage the business.