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.

Schedule MRO Requisitions

Date: 06/01/2015

Accepting routine requisitions any time day or night is disruptive to work and inefficient. Notify all your requisitioners that routine requirements should be submitted once a week except for emergency needs. This will not eliminate all MRO requests, but will usually cut down on the number. People will plan better and get used to ordering stationery supplies once a week rather than whenever they get the urge.

When you send your memo, make sure you give valid reasons, such as you can get a better deal when you combine requirements, and you will have more interrupted time to negotiate with suppliers.

Issuing procurement cards to frequent requesters also cuts down on the number of requests sent to buyers, but the cards need to be monitored and controlled to avoid excessive expenditures. Only suppliers pre-approved by purchasing should be used by the requesters.

Requesters need to be trained to plan their normal requirements. It is natural to order on the spur of the moment unless a conscious effort is made to anticipate needs. Each buyer can remind abusers of the policy about the advantages of planning. Eventually, the message will sink in and the volume of ASAP requests will diminish.

Keep track of the employees who always want everything right away and concentrate your selling efforts on those individuals or unique departments.

Also, buyers should be aware that suppliers cannot operate most efficiently if they continue at all times to get small orders rather than on a scheduled basis. Some suppliers demand regular scheduling of routine orders.