A good purchasing policy benefits all areas of your business.
The analysis of the environment is of increasing interest for the design of this policy.
A successful purchasing policy has always been a critical factor for companies. Nowadays, the context demands that its management be entrusted to increasingly expert personnel, capable of dealing with changing environments.
Start of marked textTWEET IT! The environment cyprus email list has transformed purchasing policy. Take note of what you need to watch out for to keep it under control!End of marked text
The need to study the entire chain
Supply crises are becoming more frequent in recent times . This requires a very careful study of the entire supply chain. In fact, the perspective has changed .
A few years ago, procurement was seen as a fundamentally organisational challenge . It was emphasised that the accumulation of very large inventories showed that companies were not functioning well at all. For this reason, they took refuge in high stocks that acted as a buffer against failures in demand forecasting, problems with staff, among other aspects.
Today, supply chains are much more complex and interconnected. A circumstance that, in principle, affects another sector in any corner of the planet. This can have an indirect impact on your business. Sudden opportunities and threats arise that you need to know how to approach.
So there is a shift in focus . The analysis of the internal organization remains crucial. However, you now need to study the external environment in greater depth.
You no longer just have to consider what happens to your suppliers and your suppliers' suppliers. Now, you have to keep an eye on who your suppliers' other customers are and what happens back and forth in other chains.
Liquidity problems force us to buy better
The relationship between purchasing policy and liquidity best exemplifies the need for comprehensive planning, management and control. Both factors influence aspects such as the average maturity period or the composition of current assets and liabilities.
Indeed, a good purchasing policy helps to make payment terms more flexible and to align supplies and sales. The result is a healthier treasury .
Bring coherence to your planning, management and control with Sage 50. This solution integrates accounting and business management and allows you to keep all areas of your business under control.
And the opposite is also true. Improving your cash management gives you more options in your purchasing policy . Payment terms do not condition the rest of the purchasing decision process.
In practice, combining good cash flow and an appropriate purchasing policy is easier than it may seem. It depends on whether you have all the data to make decisions from a comprehensive perspective , not just from one area of your business. And that global vision is within your reach with solutions such as Sage 50 .
How to define a good purchasing strategy?
The objective of a good purchasing policy is to obtain the products and services that a company needs. For proper production, it is recommended to follow certain criteria :
Purchase supplies and raw materials in the established quantity and date.
Always get the best possible price.
The raw material must maintain the contracted quality level .
Manage viable alternatives to potential supply problems.
Having assumed these premises, the next step is to put them into practice with a script that, for most companies, involves:
Make a forecast of the needs in each period of time that the company establishes.
Find different suppliers .
Negotiate prices appropriately with those suppliers.
Eliminate unnecessary purchases .
Prepare action plans in the event of possible supply shortages or changes in prices, deadlines and other conditions.
Rationalize stocks to the minimum possible without slowing down production.
Provide this structure with the necessary human resources to make it work.
