The purchasing plan (budget) is a part of the production/sales plan and also a part of the company's annual plan and objectives. Usually, the plan of the sales department (that is, the sales revenue budget) is the starting point of the company's annual business plan, and then the production/sales plan is determined accordingly. The production/sales plan includes purchasing budget (direct raw material/commodity purchasing cost), direct labor budget and manufacturing/sales expense budget. Therefore, the purchasing budget is a detailed plan made by the purchasing department for the quantity and cost of raw materials, materials and parts. Meet the annual sales forecast or delivery quantity to promote the realization of the whole enterprise goal. Although the procurement plan (budget) is the core of the whole enterprise budget, if it is compiled separately, it will not only lack practical value, but also lose the cooperation of other departments.
The procurement plan should achieve the following objectives: (1) estimate the quantity and time required for purchasing goods/materials, so as to prevent supply interruption and affect production and marketing activities. (2) Avoid excessive storage of purchased materials, overstock funds and occupy accumulation space. (3) Cooperate with the company's production/picking plan and fund level. (4) Let the purchasing department prepare in advance and choose a favorable opportunity to purchase materials. (5) Formulating reasonable consumption standards of commodities and materials to control the cost of purchasing commodities and materials.