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.

When managers in most organizations measure the performance of the purchasing function and the achieveme..." />

Placing Orders Is Not Enough

Date: 04/01/2009

When managers in most organizations measure the performance of the purchasing function and the achievements of individual buyers, they don’t consider order placement alone. Almost anybody can place orders, even without much training.

Placing orders or being an order placer is comparable to a salesperson being only an order taker. That is a disparaging term applied to a salesperson and is meant to indicate a different job description compared with a professional salesperson who does much more than simply taking the order.

In a similar way, professional buyers are much more than simply order placers. They analyze requirements, evaluate suppliers, negotiate terms and conditions, reduce product costs in many different ways, and solve problems.

If you want more job security in these difficult economic times, don’t assume that ordering all your organization’s supplies is all you need to do to be highly regarded by your employer. Highly valued employees contribute to their organization’s profits. And even if you are with a not-for-profit organization, keeping costs down and improving operations will make your a prized employee. Here are a few things you can do now in addition to placing orders.

Ø Shop for better products that save time or money.

Ø Conduct value analysis to reduce cost.

Ø Find out if your suppliers will help share your organization’s advertising cost.

Ø Renegotiate agreements to reduce costs.

Ø Obtain needed cash for your company by returning unused inventory to suppliers. Sell obsolete equipment and scrap.

Use your knowledge of the business to come up with other ideas. Also, ask suppliers for their suggestions.