Survey

If you are a buyer or purchasing manager for business, which of the following ways do you buy MRO items (maintenance, repair, and operating supplies)?

Buy only when immediately needed.
Buy expected amount needed for a month or two.
Buy amount depending on cost and price breaks.
Allow suppliers to estimate our needs and buy and store that amount.
Have supplier store amount for us that we use in a reasonable time.
Store amount by item category depending on cost and usage.

Do You Consider the Amount of Time Used When Buying?

Date: 01/02/2019

Author: H.E. Hough

Most purchasing operations only compare bids from one to three suppliers. In practice, buyers may not get competitive quotes for small quantities of low cost items, but they should shop more when the investment required is high. How much more time they spend with many suppliers should depend on the cost of their time compared with the potential savings obtained. But how many buyers compare their time to the amount of the potential cost savings. Do you accurately measure and compare your time spent with the savings obtained?




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