Melanie Hawkett of Source & Effect gives her top ten tips for purchasing and procurement:
1. Understand and review your spend regularly. What are you spending money on, how much, with who and how often?
2. Understand who your top ten suppliers are and make sure you have a clear plan to manage them and make the most of the relationship.
3. Always consider the TOTAL cost of a purchase to your business e.g. delivery, return on investment etc.
4. Remember that ‘good’ purchasing is NOT just about the price. It is just as much about the right product and suppliers for your business.
5. Ensure you have basic contracts in place with your most important suppliers.
6. Never enter into a negotiation with a supplier without doing your research and have a clear idea of your fall-back, ideal and realistic position.
7. Make sure your business is attractive to the supplier. They may not automatically want to do business with you.
8. Do not waste the time of potential suppliers. It may put them off putting in a quote or bid in the future. Be clear on your process from step one.
9. Make sure your business is communicating a ‘consistent’ message to your suppliers. The ‘shop floor’ may be saying something very different from the ‘accounts department’.
10. If you are considering a big purchase, make sure you are choosing your suppliers on an ‘apples for apples’ basis. It is so important to get the specification right from the start.
Source and Effect offer purchasing support and strategy development for SME’s, eSourcing, training, supplier relationship management, process development and toolkits.
For more info, visit the Source & Effect profile, or give Melanie a call on 07977 153166.