Survey

In spite of high inflation some cost savings were obtained. How much net cost changes in the last 6-12 months did you obtain over or under the budget?

More than 10% under.
1 to 10% under.
No change.
1% to 5% over,
6% or more over.

Buy the Most Appropriate Product

Date: 01/01/2023

Employees from various departments send requisitions to the purchasing function asking for the products or services they need. Often, there is a brand name mentioned or a description of the product needed. Sometimes the description is incomplete.

An efficient buyer should help the requester and also the supplier by adding the necessary specifications or finding out what is really needed.

The description may come from an engineering department that may request a unique item with specifications for only the buying company.

But even though the description from a product user or from an engineering department is sufficient to purchase the product, there may be an alternative description or different specifications that do a better job for the company. The alternative may be either less expensive or may have a higher price. The higher priced choice could be better because it may have certain advantages, such as, it can perform better or serve for two purposes.

In other words, a good buyer doesn’t automatically buy what seems to be asked for. Requisitions need to be clarified and completed. Alternatives should always be considered. Substitute products may do a better job. In fact, not every requisition should be filled. Sometimes a product or service is requested that is not really needed.

Of course, it is not wise to outright refuse to buy what a requester asks for. Any questioning of a requester must be done cautiously. The buyer needs to be diplomatic. He must present new information to be helpful.

For example, get an alternative product demonstrated to the requester. Allow the requester to change the description and ask for the alternative rather than taking credit for the change.

Some of the alternatives change the size or shape. Others may change the material or chemistry. Some may add a helpful service or explain why a costly service is not really needed. It is the duty of a good buyer to explore all alternatives in order to buy wisely.