Survey

The inflation rate now seems to be going down. What will you try first to handle new price announcements?

Accept any change.
Negotiate any increase to less than 5% increase.
Shop for a lower cost supplier.
Negotiate to postpone any increase.
Ask for a price reduction.

Today's Tips


Be Prepared for 2013 - 11/01/2012
Now is the time to get ready for the new year. Planning what you want and intend to do early will insure that you benefit for the full year. A well-run organization will develop objectives first. Then budgets will be made to help achieve those obje...

Manage Your Meetings - 10/01/2012
Some bosses gather their staff for a meeting every week. Others do so every day. Such meetings are helpful with communication but can be very costly and counterproductive. Some general managers schedule a general meeting with all their department h...

Act Before the Economy Improves - 08/01/2012
Business buyers need to take action now before the present sluggish economy improves. Prices for most parts have been rather stable. Many of the various government price indices show very small increases, in the neighborhood of one percent, and a g...

Obtain Compensation for Supplier Errors - 07/01/2012
Everybody makes errors and sooner or later all suppli-ers make a mistake. Some mistakes are so minor that it is not worthwhile to obtain compensation. Also a supplier may be very grateful if you overlook a small error, and they are likely to not ho...

Don't Burn Your Bridges - 05/01/2012
Your first reaction when you are angry or disap-pointed in a company or a person is to respond with criticism or abuse. But think twice before you berate a supplier. Think about the consequences when you malign your boss if you are leaving a compan...

Become a Products Specialist Purchaser - 04/01/2012
You become a much more valuable employee when you know more about a product than anyone else in your organization. For example, if you buy steel, engineers and production people will come to you for advice. Even those who market your company’s pr...

Save by Changing the Specifications - 03/01/2012
Savings from purchasing activities are achieved by negotiations and shopping, but they also can be obtained by changing the product’s specifications. Changing the specs doesn’t necessarily lower the quality, but care must be taken to avoid doin...

Obtain Savings By Paperwork Reduction - 02/01/2012
It is easy to create more work and waste money. All you need to do is create more poorly designed forms that must be filled out in many multiple copies. Another way is to send copies of reports and unimportant notices to everybody you can think of....

Praise Your Suppliers When Justified - 01/01/2012
Giving a compliment to a supplier when it is warranted does not encourage a supplier to lessen performance. On the contrary, if done properly, it may produce a continuation of good results or even stimulate better performance. It is proper to tell...

Be Prepared for an Audit of Purchasing - 10/01/2011
Audits of the purchasing function are periodically conducted for public companies. This may be done internally by an employee from the organization’s accounting function or it may be done by outside auditors. Someone from a selected public accoun...

An Easy Way to Find a Good Supplier - 09/01/2011
If there are only a few suppliers available for the product you are looking for it is not much trouble to check the capability of each supplier and base your sourcing decision on the lowest cost. However, there are hundreds of suppliers for some pr...

Concentrate On the Big Items - 08/01/2011
Spend most of your negotiating time shopping for the items that cost the most. If you have a policy of obtaining three quotes for new items, it might be worthwhile to consider asking for much more. For example, if you are shopping for a piece of eq...

Can You Do Without the Packaging? - 07/01/2011
Some printers will shrink wrap your purchased forms in bundles of one hundred or more or less. They will ship your envelopes in beautiful sturdy boxes of five hundred envelopes per box and then place the boxes in sturdy shipping containers. Other p...

Avoid These Time Wasters - 02/01/2011
If you are like most of us in the purchasing function, you would like to have more time. There just does not seem to be enough hours in the day to get everything done that you would like. You can improve the situation by eliminating time wasters an...

Shop and Negotiate Now - 01/01/2011
Now is the best time to negotiate. It is easier to obtain concessions from existing suppliers when the economy is depressed and from new suppliers to make the best offers when they are hungry for new business. For many items prices are down or ste...

Shake Up Your Organization - 11/01/2010
When a company replaces a manager with a new person, he or she is frequently asked to make some changes. Improvements are expected based on the new person’s other experience and fresh approach. If the changes aren’t too radical, the new policie...

Make Your Deals Now - 10/01/2010
Companies may not be soliciting business during this slump in activity. They may have laid off salespeople and cut back on their labor force so they don’t need as many orders to keep afloat. They are likely to assume that buyers don’t have orde...

Making Supplier Qualification Easier - 09/01/2010
Interviewing and qualifying prospective suppliers can be tedious and time consuming. You can make it easier and save time by planning the essential discussions for all supplier meetings. Making a list of questions well ahead of time about the infor...

Make Sure You Have a Good Database - 08/01/2010
One mistake that small companies make when they start is to neglect establishing a database of their activities. The longer the delay in postponing the collection of data in an organized fashion, the higher the cost to the business. The need for hi...

The Compound Effect of a Price Reduction - 07/01/2010
The best buyers know that it is better to have an objective of lower costs rather than lower prices only. It is important to remember that lower costs can be achieved in various ways including price reductions. This publication has described the di...

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