Entrepreneurs Brief Guide

“How to Purchase Efficiently”

Dr Jim Porter

For most of the new businesses, effective purchasing can lead to an increase in profits and improve efficiency. Most of the time, when businesses are troubled because of high prices charged by their suppliers, the managers step in to negotiate with the other suppliers and knock a few percentages off their price.

In 30 minutes, learn how to:

Specify your purchasing requirements

Select your suppliers

Maintain a good relationship with your suppliers

Consider alternatives to purchasing

Copyright

How to Purchase Efficiently

Dr Jim Porter

Revision: SW2.014.001

Copyright © 2011 – All Rights Reserved.

Smashwords Edition

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ISBN: 978-1-4659-2868-9
Publisher: Smashwords, Inc.

For most of the new businesses, effective purchasing can lead to an increase in profits and improve efficiency. Most of the time, when businesses are troubled because of high prices charged by their suppliers, the managers step in to negotiate with the other suppliers and knock a few percentages off their price. Even a minor reduction in their prices can lead to major savings for the business and boost their quality.

Detail what you want

You must always specify what you want from your supplier and what you expect from your purchase:

You must identify the features of the goods/services that will be supplied to you and agree on the details and specifications with your supplier, such as size, features, quality, appearance and procurement time.

However, over specifying might lead to a reverse effect and may cause increase in prices or the suppliers might get irritated.

You must have a documented proof of your agreement in writing as verbal documents maybe difficult to prove later on.

All the specifications and terms of purchase that you have greed upon will form the basis of your purchase contract.

You relationship with your supplier could be strained in the future, so having a mutual agreement and contract will help in avoiding such misunderstandings.