History of Purchasing: Past, Present and Future

13th Century

Historically tracing back this activity one finds that in the Clay Tables of
the 13th century B.C. inscribed in the days of the Phoenician Traders refer to
persons serving as ‘Purchasing Agents’. Ancient purchase orders written on
parchment scrolls in the days of Julius Ceasar called for delivery of amphoras
of wine, honey and oil.

18th Century

Purchasing has long been considered one of the basic functions common to all
organizations. Only during the past two centuries has purchasing been
addressed in trade and textbooks. In 1832 Charles Babbage addressed the topic
in his book titled on The Economy of Machinery and Manufacturing. He points to
the need for a ‘materials man’ in the mining sector who selects, purchases and
tracks goods and services required.

Purchasing Revolution

1960 – 70

During the sixties and seventies purchasing frequently used manual systems to
manage purchases. The buyers’ major focuses were purchase price and prevention
of stoppage of production. The typical department had a series of junior and
senior buyers, clerks, supervisors and a purchase manager. By the end of the
decade of 1970 the marketplace had become more international from both a
marketing and supply point of view. Computer began to help in the purchasing
management.

1900

Competitive pressures increased in the 1990s and the impact of proper purchase
management of goods and services on the company assets became very significant
and very visible. Purchasing had become more strategic.

Procurement Strategic Approach

2000

Purchasing shift to Procurement in 2020s. Strategic Procurement process
applies in an organization that aims to plan properly to buy product or
service at right price, quality, timely supply and mitigate supply risks to
meet the organization’s business goals.

Procurement Digitalization

2022

COVID-19 Pandemic caused millions of deaths, making it one of the deadliest in
history. Global Supply Chain and business brutally effects in pandemic. Many
businesses shut their operation which hits to laid off many jobs. In 2022,
businesses are transformed digitally. Online business has boosted their
revenues and generating employments. Public and corporate procurement
reassigning their operation and adopting digital culture.

Procurement Disruption: The Future Procurement

Procurement function shape will disrupt in future. Repetitive and non-critical
activities will be done through robots with the help of artificial
intelligence (AI), internet of things (IoT), chatbots and machine learning. Be
ready to adopt the future Procurement. In a word where most procurement
experiences are available at the touch of a button.

Related readings: Difference between Purchasing and Procurement

FAQ’s

Q 1: What is introduction of Purchasing?
Ans: It is the process of acquiring goods or services from vendor with exchange of currencies

Q 2: What is the introduction to Procurement?
Ans: Procurement is the process of planning, sourcing, contract award and management which needs to fulfill company’s business model