Today's Tips

Lower Your Costs By Helping Suppliers - 11/01/2008
The nation’s financial crisis has resulted in tightening of both business and consumer credit. Many businesses cannot even obtain short term loans which they routinely depend upon to conduct business. Businesses of all sizes, but especially smal...

Beware of Blanket Price Changes - 09/01/2008
Suppliers announce price changes in various ways. Seldom do they ask the buyer in advance if a price increase will be accepted. Normally they announce an increase by a letter, or in a revised catalog, or sometimes preceded by one or more public ann...

The Value of Inspection and Minimizing its Cost - 08/01/2008
It is wise to inspect a purchase product either before delivery or before acceptance. Inspection can be made at the supplier’s facility or at the buyer’s location. For international purchases, outside organizations can be hired to conduct inspe...

Plan to Imrove Your Purchasing Operation - 08/01/2008
It is easy to get caught up in routine activities when you are manager of the purchasing function. The demands of the job keep all of us busy. There are requisitions to clarify. There are salespeople to interview. There are suppliers to locate for ...

The Importance of Membership Renewal - 06/01/2008
Keeping your membership in the American Purchasing Society is a wise thing to do. It makes sense professionally and economically. Membership helps your career by indicating you are interested in your profession. Membership in APS provides informati...

Standardization Saves Buying Time - 05/01/2008
There are two types of standardization that save a significant amount of time spent buying. The first is standardization of products purchased. Limiting the number of approved products for purchase within the organization has multiple advantages. ...

Beware of Charges Not In the Buying Agreement - 04/01/2008
The purchase agreement should consider all charges that will be made. To properly evaluate the total cost of the transaction, your calculations must include all charges. This seems obvious, but it is common for suppliers to not tell you about certa...

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...