To whom the purchasing function reports can be different from company to company, and that's OK. To simplify it, if the company sees Purchasing's primary role as delivering cost savings, the company generally positions Purchasing under Finance, reporting to the Chief Financial Officer.

Is procurement part of finance?

In a traditional business structure, procurement and finance are two separate departments, working alongside one another within the organization. ... The procurement function is about spending the money well, and the finance function is all about keeping the balance sheet in the black.

What department should procurement fall under?

In manufacturing companies, it is much more common to have procurement report to leaders within operations or supply chain management.