1. Have an open-door policy
You can control your costs by managing your competition. Therefore, vendors should be approached with open arms. This does not mean you have to meet every sales representative that knocks on your door. Efficiency is a critical factor in increasing productivity and reducing costs.
My point is to use common sense when choosing who and when you view them. But make sure you and your staff are constantly interacting with suppliers and vendors. Competitive bids are required for products and services your company purchases.
You will never achieve total cost control if you and your purchasing team only review prices from the same vendors year after year. You will never know whether you are getting the best value out of your existing suppliers and if there is a better source.
To get the best value for the people who do the buying, they need to be constantly looking at new products and services.
What if a new product is available that lasts twice as long and costs half the price? You might not know it exists if your supplier doesn’t offer the product or you don’t keep up with other suppliers’ product lines.
Your people should not be restricted to working with one supplier. You must encourage your people to be open-minded and not limit their ability to deal with the same suppliers.
2. A Great Source of Ideas
You will also benefit from working with a core group of suppliers and a rotating base of secondary suppliers. This allows you to be exposed to other ideas. These suppliers can be a great source of information about your market, trends, the industry, and competition. These suppliers can help your employees see things differently and find new ways of doing things. You may get new ideas to improve sales, productivity and reduce errors.
These people are in business to sell to your sector and other related industries. It is their business to be knowledgeable about your industry. You should consider the top suppliers and sales reps more than just a vendor. Consider them a resource, and don’t be afraid to ask questions.
They can and should be a great source of creative and innovative ideas.
Let me tell you about a real-life example. One sales representative called me from a company that sells printing material. He informed us of a new printing plate that provided better image reproduction, lasted 25% longer, and costs about 15% less than ours. All of these claims were true after we gave them a test run. These plates were the only ones we switched to.
There were many people calling us, but only one of them was an authorized distributor. Even if they wanted to, none of the other reps could sell us these plates. We might not have discovered these plates if we had only worked with one representative or a small number of regular agents.
This is only one example of the many I could offer. Reps have given me tips and helped me improve production. I also received employee leads and new product ideas.
3. Dual Signatures
All purchase orders exceeding a predetermined amount should be signed by two people. This will provide additional protection against fraud and lousy buying habits. You will also have another party that is familiar with the purchase available in case something happens to any of the signing parties.
In this instance, I suggest that the purchase order form include a space for a second signature. The printed words that indicate that any purchase orders exceeding the predetermined amount are invalid without the second signature would also be helpful.
4. Centralize purchasing efforts
This is the best way for maximum control and cost savings. It is absurd to have every department or division order what they need by themselves. Different branch locations cannot order what they need on their own. It is ridiculous to let each individual who requires something call it from their own branch. Having one source for all purchases will allow you to combine purchases to get the best prices and terms.
You will be able to work with a select group of best-value suppliers, which will allow you to get the most value and leverage from your relationships with them. These are the significant advantages of centralized purchasing over decentralized buying, which can rob you of cost control and reduce efficiencies and replace them with duplication and waste.
Note: I am well aware of the fact that purchasing small quantities or low-cost items from different departments and divisions can have higher costs than the savings on the purchase. To eliminate delays and internal costs, you might want to set a minimum level for purchasing that all departments can participate in. This subject is too complex for me to discuss in detail. It is merely a matter of your consideration.
Derrick Welch, an author of “In Pursuit Of Profits: How at Least Double Your Profits without Increasing Sales,” provided this edition of The Welch Report. This report includes 1,000 cost control, expense reduction, and income-producing strategies you can start using today to dramatically increase your bottom line.
whoah this weblog is excellent i like studying your posts.
Stay up the great work! You realize, lots of individuals are looking round for this
info, you could aid them greatly.
Also visit my web-site; allstate jump start cost
Производитель спецодежды в Москве антимоскитные костюмы
– купить оптом спецодежду.
Way cool! Some extremely valid points! I appreciate you penning this write-up and the rest of the site is also very good.
Hello colleagues, its great article regarding educationand entirely defined, keep it
up all the time.
You actually reported that wonderfully.
caesars online casino new jersey online casino no deposit bonus codes malaysia online casino
You actually mentioned this effectively.
college essays for sale buying essay
Really quite a lot of wonderful data.
what format do i write my college essay my life as a writer essay write my term paper for me
If some one wants to be updated witһ neѡest technologies tһen hе must be pay a visit tһis website and be uр to datе ɑll thе timе.
Havе a ⅼoօk at my blog :: strattera cheap (strattera4us.top)
Seriously plenty of helpful information.
i don t want to write my essay how do i start my essay introduction need essay writer
manchester united chandal
Write more, thats all I have to say. Literally, it seems as though
you relied on the video to make your point. You clearly know what youre talking about, why waste your intelligence on just
posting videos to your weblog when you could be giving us
something informative to read?
Terrific facts, With thanks!
architecture essay writing service essay writing service employment best online essay writing services reviews
Thanks a lot! Awesome stuff!
paper writing services custom paper writing service term paper writing services
Information effectively used.!
spongebob writing essay gif buy essay service writing a community service essay
Factor clearly used!.
writing a narrative essay college essays writing writing a conclusion for an essay
Very good tips. Thanks!
what is the best dissertation writing service best essay writing service canada essay writing service craigslist
Kudos, Useful information!
essay writing help online essay writing service usa writing a memorial service
You said it adequately.!
anchorage resume writing service linkedin profile writing service descriptive essay writing service
Amazing loads of great material.
professional essay writing service music essay writing service french essay writing service
You suggested that adequately.
writing a profile essay essay writing service 2018 lab report writing service uk
Tips nicely applied!!
writing an essay outline upstate resume & writing service linkedin profile writing service australia
Seriously tons of useful data!
fiverr essay writing medical thesis writing service india starting a resume writing service
Nicely put. Many thanks.
college essay writing service reviews personal statement essay writing service entrusted essay writing service online
penis enlargement
Regards, Lots of content.
phd essay writing service student essay writing services assignment writing service dublin
Seriously quite a lot of fantastic information!
6th grade essay writing worksheets cover letter writing service reviews cheap college essay writing service
Factor nicely utilized.!
science resume writing service the best online resume writing service public service resume writing
Excellent write ups. Cheers!
australia essay writing service essay writing service news lab report writing service uk
Cheers, I enjoy this.
free online will writing service writing a cleaning service proposal cv writing service cost
Thanks. Ample facts.
customer service email writing test is cheap writing service legit essay service reviews
continuously i used to read smaller articles that as well clear their motive, and that
is also happening with this paragraph which I am
reading at this place.
Hi there! Someone in my Facebook group shared this website with us so I came to
check it out. I’m definitely loving the information.
I’m book-marking and will be tweeting this to my followers!
Great blog and terrific design.
This design is steller! You obviously know how to keep a reader amused.
Between your wit and your videos, I was almost
moved to start my own blog (well, almost…HaHa!) Wonderful job.
I really loved what you had to say, and more than that,
how you presented it. Too cool!
This paragraph offers clear idea in support of the new people of blogging, that truly how to
do blogging and site-building.
Greetings from California! I’m bored at work so I decided to check out your site on my iphone during lunch break.
I enjoy the information you present here and can’t wait to take a look when I get home.
I’m surprised at how fast your blog loaded on my mobile ..
I’m not even using WIFI, just 3G .. Anyways, wonderful blog!
We are a group of volunteers and opening a new scheme
in our community. Your site provided us with valuable information to work on. You’ve done a formidable job and our whole community will be
grateful to you.
Awesome issues here. I am very satisfied to see your article.
Thanks a lot and I am having a look forward to contact you.
Will you kindly drop me a mail?
I read this piece of writing completely concerning the difference of most recent and earlier technologies,
it’s amazing article.
Hi to all, how is the whole thing, I think every one is getting more from this web site, and your views are fastidious
designed for new visitors.
I believe that is among the such a lot vital info
for me. And i am satisfied studying your article. However wanna observation on some basic things,
The website taste is great, the articles is in point of fact
great : D. Excellent task, cheers
You ought to be a part of a contest for one of the greatest blogs on the internet.
I am going to highly recommend this blog!
What’s up, just wanted to tell you, I enjoyed this post.
It was helpful. Keep on posting!
Can I simply just say what a relief to find somebody that truly knows what they’re talking about on the web.
You certainly realize how to bring an issue to light and make it important.
More and more people really need to read this
and understand this side of your story. I was surprised you
are not more popular because you most certainly have the gift.
Awesome! Its actually amazing post, I have got much clear
idea on the topic of from this post.
This text is invaluable. When can I find out more?
The payouts in a live game are excellent as well so you stand to win a decent amount of
dollars when you play live.
You can also stretch your money additional when you make a deposit with Bitcoin – the casino delivers a 5% bonus for
reloads.
It’s remarkable to go to see this web page and reading
the views of all friends on the topic of this paragraph, while I am
also keen of getting familiarity.