Become a True Competitor When You Develop an Effective Purchase Plan

Buyers' Training
November 7, 2012 — 1,279 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

Become a True Competitor When You Develop an Effective Purchase Plan

Every business must uphold a budget to be successful. Get carried away on purchasing products, equipment, or supplies and you could go over budget and cause havoc in all areas of your operation. To be successful, it is crucial that you develop an effective purchasing plan for your business. But, where do you start?

Set Measurable Goals

As with any other aspect of business operation, you must set a clear goal for your purchasing plan. Your goal has to include an end; in other words, your goal must be something that is measurable. For example, if you have been spending too much money on equipment and supplies, one of your goals may be to reduce the cost of company equipment and the supplies used.

Assign a Department Head

Whether your business has a hundred employees or five, you must assign one person to be responsible for the purchasing plan. If too many employees have their hand in the department, your purchasing plan is not going to work effectively. By designating one person to be in control of tracking the purchasing for your business, your business is more apt to stay on the right path and reach the goals you have set.

Get Management Onboard

As manager of operations, you can create a plan, but if other managers and supervisors are not up-to-date with your plan, it will not work. While the heads of departments will need purchasing power, they need to be onboard with the plan and understand how their purchases will affect other aspects of the business, whether it will mean raised prices for customers or a cut of expenses in another department.

Understand the Vendor-Buyer Relationship

Many businesses often make the mistake of sticking with a vendor because they have become friends with the sales rep or the sales rep gives out great gifts. The vendor-buyer relationship needs to be about costs. The key to your own success is going to be to find the vendor with the lowest cost, but remember that you are not going to get the lowest cost if you do not ask for it.

The above items are several things you can do to develop the most effective purchasing plan in your company. Your purchasing plan is going to require a lot of planning and coordination among your top executives. However, if you can execute the plans you have made, you are one step closer in becoming one of the top competitors in your field of business.


Buyers' Training