Researching the Position of Purchasing By Analyzing the Logistics Flowchart

In the process of SINOPEC exploring the global market and establishing overseas operations,there are lots of primary questions proposed for the management committee to determine.As for Purchasing is an important department and about seventy percent of the total corporate spending will go through the purchasing system.It is necessary to make clear some questions such as how to build the purchasing/supply system;what and how many departments should be included,what position the purchasing department should be in the corporation and what the relationships should be among the purchasing department and other departments and so on.There is also growing interest at the executive level in the purchasing management process and greater recognition of the importance of the purchaser and the material flow process on an organization's ability to achieve its strategic goals and objectives.In this article,we try to find out some answers by researching from the purchasing flow chart and the relationship among the Purchasing Department with Engineering,Legal,Accounting and Quality Control to the position of purchasing in the organization.