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Based on the tags you've given this question, I assume you are referring to the procurement department of a company.
The procurement department is responsible for the legal and operational aspects of a companies purchasing. The department typically approves vendors (to make sure they are real companies, or to ensure that separate departments all use the same vendors for similar products, etc.) and negotiates the contracts with the vendors. By centralizing the purchasing process companies can often pool their purchases and negotiate better deals with vendors.
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