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


Communicate Effectively To Save Time - 02/01/2008
Some buyers seem overworked while others seem to have plenty of time to handle the same number of duties and work volume. Work habits usually have something to do with the difference. The overworked buyer spends more time on the telephone with sup...

The Big Picture Vis-á-vis the Details - 01/01/2008
It is very useful to look at the big picture. We do this by looking at totals and summaries. For example, we may look at the total amount spent with a particular supplier and compare it with the amount spent with another supplier. Take a hypothetic...

When to Ask for a Cost Reduction - 11/01/2007
Purchasing people are reluctant to ask for a price decrease from existing suppliers during a period of high inflation. As long as the supplier is not asking for more, they don’t want to rock the boat. Why give the supplier the chance to show that...

Get Involved to Select the Organization’s Software - 10/01/2007
Software can cost from a few dollars to hundreds of thousands of dollars. The more expensive kind is usually intended for larger companies and involves networking with many employees. The higher priced software may require changing the hardware, wh...

Why a Great Deal May Turn Sour - 09/01/2007
The supplier had just purchased the company that provided telephone service for buyer John’s company. The new owner’s representative called John to say that the old system would not work with the new supplier’s system and therefore the buyer ...

The Key to Controlling Quality and Delivery - 08/01/2007
Records should be kept of the number of quality and delivery problems. The percentage of rejections or off schedule deliveries compared with the total number of placed orders gives an objective measurement of supplier performance. Depending on memo...

To Allow or Not Allow Supplier Subcontracting - 07/01/2007
Working with a supplier’s supplier may sometimes be necessary, but it is not always easy. It is simple, however, to forget to discuss if a portion of your order requirement is going to be subcontracted. One way to help minimize this risk is to in...

How to Promote Yourself and the Purchasing Profession - 06/01/2007
If you are a purchasing professional, when you promote the purchasing profession, you promote yourself as well. Making the purchasing function ever more important in the eyes of business and the public helps improve status, salaries, and the author...

Solicit Cost Reduction Ideas from Old Suppliers - 05/01/2007
Many large companies ask their longtime suppliers for ideas to reduce costs. The buyers for these companies don’t assume that their old suppliers will automatically submit cost reductions. It is easy to place less emphasis on negotiating with go...

Minimize Ill Will When You Leave a Supplier - 04/01/2007
For the first few months a new employee is usually given a grace period to learn the unique aspects of the job. Sometimes that period is referred to as "the honeymoon" because your image has not been tarnished by mistakes and your image is still ba...

Winter Leadtime Considerations and Other Causes of Delay - 03/01/2007
You need to consider many factors to make sure you obtain scheduled delivery on time. When suppliers make a bid they usually give the date when they expect to make delivery. When the material in question is urgently needed buyers may place the busi...

Middlemen Help Buyers - 01/01/2007
Brokers, manufacturer’s agents, and trading companies can save you money if you don’t have the sufficient volume or skill to buy properly directly from the source of supply. A good manufacturer’s agent can assist the buyer in several differen...

Using Available Time to Conquer Purchasing Workload - 12/01/2006
If you are a typical purchasing professional you need to: Locate new sources of supply Interview new suppliers Visit supplier facilities Contact supplier references Clarify requisitions Obtain bids Analyze bids Plan and conduct negoti...

Placing Orders Not Enough - 11/01/2006
Most of us want to do a good job for our employer. Most also probably feel they are doing so and are surprised if they don’t get a big raise or the raise they do get is not as much as they expected. Some feel they should get a promotion. Think a...

Business Buying Requires Additional Skills - 10/01/2006
There are many differences between the way consumers buy and the way business buys. Even though they both use some similar methods the differences are important for successful business transactions. Both consumers and business buyers shop, but goo...

Know Your Purchase Volume - Information to Improve Performance - 09/01/2006
One of the most valuable tools for buyers is the availability of information about the amount of purchases. Organizations are rightfully concerned about the number of pieces of each item that are on order or that are on hand, but we are not talking...

How to Reduce Purchasing Paperwork - 08/01/2006
Small organizations usually have little paperwork involved with the buying operation. In part, that is because in the beginning they usually don’t even have a formal purchasing department. Either the president, or others involved in the organizat...

Save Price Quote Information - 07/01/2006
It is a real challenge to accept a job as Buyer or Purchasing Manager and find that your new employer has kept no record of prices paid. Price histories are a highly valuable tool to use when comparing new prices and before placing new orders. Mos...

How to Get Noticed - 06/01/2006
If you are ambitious, you want to get the attention of upper management. That’s okay. Just be careful you get noticed at the right time and for the right reasons. Time after time we see employees who think they know what the boss wants. They thi...

Avoid These Time Wasters - 05/01/2006
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...

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