For Profitable Purchases

It is now known that the procurement of a product (goods or services) at the lowest cost is a purchase. Procurement specialists do the job with the newest methods and strategic moves. Purchasing managers who take the right steps to make profitable purchases know that even a 1% saving is the profit margins that multiply for an organization.

This is a prediction of thumb rule. This is a more important issue for manufacturing organizations. Because a normal manufacturing organization’s income is primarily about purchasing expenses. In this case, some criteria must be taken into consideration in order to be able to profit from purchases.

First of all, the increase in the number of suppliers constitutes an intermediate method of achieving profitability. Although it seems to have no function, it reaches results in the long term. While you are acquiring a lot of new suppliers, a lot of them leave your supplier system. The price lists and product specifications of the suppliers should be stored even if there is no current requirement to have a wide supply network. A quick-access system will also help them purchase when needed.

Choosing the suppliers is like finding the right key that opens the door to profitability. It’s a good thing, but a little difficult, for a supplier to meet the needs of the business. It is important to note that not all the needs are always met. Suppliers who meet most or nearly all of the needs should be selected in such cases, but not all.

The points to be considered at this point. These are:

• Price range

• Delivery Time

• Term Period

• Convenience in Reaching the Supplier (Logistics)

• Packaging Appearance

• Adequacy and Value of Information on Product Promotions

• After Sales Services

The steps to be followed after establishing the delicate balances related to the mentioned criteria undoubtedly concern analyzes and findings both during and after the purchase. For example, to make the best use of the opportunities offered by suppliers and to take a share from these opportunities, is one of the steps taken to achieve profitability.

Evaluating the Opportunities

The emergence of new suppliers creates new opportunities. New suppliers who want to be in the market are always full of opportunities. Even if they are not needed for that moment, they might be needed for future projects.

Comparing Prices and Products

When making comparisons between products and prices, only price-based comparisons should be avoided. Features may vary between two products at the same price. Product A may have more or less benefits than product B. All must be observed when making comparisons.

Spend Analysis

Conducting analyzes where you can see what you’re spending helps you see what you’re paying for. This way, your future purchases will be more reliable.

New Pricing Strategies for Payments

You can definitely get external support. This way, you can see your advantages and disadvantages and establish price strategies accordingly. You can also follow supplier price-cutting policies to create more affordable purchases.

Proceed Systematically

A disorganized pattern may lead to confusion between what you are doing and when, and cause your business to fall apart. The systematically created request, order, offer, delivery and payment forms will help you better manage your relationships with your suppliers and simplify purchasing analyzes.