Based on this information, each department will take further action (e.g., approve orders, receive goods, pay invoices). This is then shared with the warehouse as well as the production department and the finance department. Presumably the purchasing department will take over and place an order with a specific supplier. This information stems from the production planning where a purchase request is registered, but will not just stay within this department. For example, the production process will grind to a halt if no goods are purchased, resulting in a purchase need.
Where organizations are functionally organized around departments such as purchasing, marketing, production, sales, and finance, it is the processes across these departments that ensure smooth operations. They are the core to creating value for the end user, both internally and externally. Processes are an important part of a company’s daily operations.
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