Purchasing & Warehousing Expenditure in an organisation is a major part of the operation cost that it has to control. Effective warehousing will help to manage space and time. We need to identify and control the four costs related to warehousing, namely handling, storage, operation, and administration expense. Companies must continuously monitor and control the expenditure the companies use to purchase the required goods and services in the market. Purchasing personnel must practice the six of the proven ways of obtaining products at a relatively low cost that is through negotiation, meeting specifications, right inventory, effective sourcing, good administration, abiding by terms and conditions.