Purchasing is certainly a part of business strategy more so in a difficult economic situation. Since purchasing interfaces with functional areas of organization and with supplier, it is an important part of supply chain management system. In today's organizations Just-In-Time(pull system) is more common than Economic Order Quantity(push system). Procurement being an integral part of organization's value chain should work in unison with Corporate Social Responsibility as a strategic function.

Purchasing power has been affected by the current hike in the prices. Mostly in the under development and developed countries, the price change affects the purchasing power of person to the organization.

1. Today purchasing process is seen as much strategic process due to the current hike and lot of number of vendors. The processes developed for purchasing items are highly labelled as critical and a number of reviews are taken by management for buying a product or service. This increases the time delay for the product or service to reach the intended person or the organization.

2. A number of hurdles are placed now a days for the procurement of any product or service. It is now handled in a down to up methodology by taking permissions from each and every top management authorities.

3. Now a days, procurement department go for more number of vendors for the same product. Some consider quality vs price and some just want to buy the product in lower cost. Also limitations placed by the procurement authorities and quality process make it more difficult for the vendors to sell their products to a organization.