Your organisation’s approach to procurement is one of the most important areas that can impact your business’ growth. It is what helps you to identify and deliver best value from suppliers, including reducing costs and streamlining your processes. Ultimately, it is what drive your bottom line.
Ideally you should create a strategy that includes tactics and processes around how best to how to identify and acquire the goods and services that your business needs and then fully optimise the supplies on an on-going basis by working with your suppliers.
As with all business processes there are some fundamental mistakes that can be made that can easily be avoided that will save your company both time and money. The first thing you need to do is make yourself aware of them.
It is not uncommon to assume that the prices you are offered by a supplier are fixed. Sometimes they may be.
However, there is nothing wrong with asking your supplier if they are willing to negotiate on price in exchange for you giving them something in return, this may simply be your business or better still something such as a longer initial contract period. So long as you are professional about your request, you may be able to get a better deal whilst still building a good relationship with your supplier.
Your suppliers are a crucial part of your business. They are who you turn to when it comes to discovering great deals or learning more about availability of products or new or innovative products.
Considering this, it is only best for you to work to maintain a good relationship with them. Never ignore their communications and keep in touch regularly with them. Your efforts may give you countless opportunities to get a good deal or be the first to try their new offerings. Some companies can use Supplier Management Software’s to help build supplier relationships and effectively communicate.
It is true that, in business, timeliness is crucial. You need to think and act fast; otherwise, you will be left behind by your competitors.
However, it pays to remember that making snap decisions is never smart. Not giving yourself enough time to study your options will only lead to unnecessary expenses. It may even cause you to miss out on a better deal.
Although you must act fast, you still have to review your decisions before finalising anything. This is especially true for large orders. Taking the time to think over your purchase can help you get the best value for your money.
You may be tempted to keep major decisions to yourself to get things done more smoothly and quickly. However, it pays to remember that not involving other internal stakeholders on purchasing decisions can lead to problems later. It may backfire on you and cause the company to lose precious resources.
To achieve the best results, get the input of every stakeholder first before agreeing terms. Doing so will empower you to make purchasing decisions that will truly benefit the whole company.