All companies need to purchase products or services from different providers for their proper functioning.
Key aspects such as are part of correct purchasing management; Control the costs of all these acquisitions, specific or periodic, choose the most appropriate supplier in each case, place orders in a coordinated manner between different areas.
So that the company does not lose money in these actions, it is advisable to review and evaluate the entire purchasing management cycle to detect possible failures and make improvements.
The 7 keys to improve the company's purchasing management
1. Centralize purchases
All purchase orders must be coordinated by the same department. Making one large order is usually cheaper than several small ones. In addition, errors such as duplicating orders are avoided, and quantities are better adjusted.
2. Create protocols
A purchasing policy that standardizes the ordering process makes things much easier.
The protocols are necessary to avoid having to generate a new process in each individual case, which means loss of time and a greater possibility of errors.
3. Diversify suppliers
It is very convenient to have several suppliers identified, based on criteria such as quality, price and delivery history.
That way, if a supplier runs out of stock, suddenly raises their prices or stops serving a certain product, the company will not experience delays or price increases if a new supplier has to be found at the last moment.
Another important aspect is the annual review of the suppliers and the agreements established with them, since long-term relationships with suppliers can be very beneficial for both parties.
4. Mentalize the squad
Company personnel must be aware of the need to collaborate in saving supplies and control spending, as well as understanding it as an effective and beneficial measure for the company.
5. Keep an eye on inventory carrying costs
Supplies storage costs must also be taken into account, because it is another factor that can trigger costs indirectly.
The purchases must be calculated so that they do not exceed the estimated cost of storage that the company can assume.
6. Identify inefficient processes
Supplies storage costs must also be taken into account, because it is another factor that can trigger costs indirectly.
The purchases must be calculated so that they do not exceed the estimated cost of storage that the company can assume.
7. Implement purchasing management software
These are software that coordinate the needs of the different areas, manage suppliers, generate delivery notes and invoices, control the dates of receipt of orders, etc.
The tool centralizes all purchase operations, so that duplication, errors and lack of coordination between departments are avoided. In addition, it allows you to track orders and update data quickly and smoothly.