Improving the Purchasing Activities of Your Company

Your purchasing activities as a company have some impact on how your business is running and how your finances are managed. Whether your company is big or small, it is crucial that you improve your purchasing activities in one way or another. Here are some tips to improve them.

• Purchasing process must only be done by authorized personnel.
You have a serious problem as a business owner if you allow any person in your company to buy office supplies even in small quantities once they need them. As much as possible, all purchases must be funneled through and authorized by a purchasing individual or team. This allows you to take control of the process. Moreover, you can also maximize your purchasing power.

• Buying in bulk helps you save more.
While buying in bulk can help your company save more, you have to make sure to know how to use your money effectively. At the same time, you have to assess if what you purchase is required and can be used at a reasonable duration of time. When you buy products in unrealistic quantities to save money without really having use for them, you are just wasting money in return.

As a company, you should make a sales projection. This will serve as a basis for pricing and production. As much as possible, a small test quantity should be run until the sales projection becomes actual sales. As long as what you are buying is required and can be used at a reasonable time table, buying in bulk will help you save more.

• Don’t be led but remember lead.
Avoid purchasing supplies if there are conditions of the sales that are objectionable. Get clarification if there are aspects of the contract that are not clear. Do not strike out or sign a section of the agreement that you find objectionable. Have a sales representative initial any changes with you. To have a written record of things that are not found in the contract, an addendum is required.

• At least once a year, analyze all of your patterns of purchasing.
When it comes to your buying habits, ensure that your purchasing patterns are the most effective ones. When buying supplies or anything for your business, make sure that you look at the prices, quality, and delivery. As much as possible, you should get the best of these three things. Determine if your purchases are delivered on time. Assess if the quality of the items is acceptable. Check if you are buying in the right quantities depending on your yearly usage.

• Do not be lured into unsolicited phone sales calls.
These are often referred to as scams that can cost your business millions every year. Most of the time, the company calling you will offer products with poor quality and high prices. The pressure from the other line is very high from being friendly and sneaky to being pushy and aggressive. It becomes effortless for them to catch you off guard and make a sale. You might not know it, but one of your employees may already have approved for a product that your business does not need or want.

The best way to be free from these threats is to hang up simply. If something sounds fishy, then it probably is.