6 tips to make your company's purchasing management more efficient

6 tips for efficient purchasing management

.6 tips for efficient purchasing management

 

The purchasing department is an important part of a company's operations. Therefore, institutions that want to achieve sustainable growth and remain competitive in the market need, more than ever, to understand the importance of purchasing management and seek ways to make the area more strategic and efficient.

In the past, most of the work performed by professionals was done manually. This required a lot of time from the team, in addition to considerably increasing the risk of recurring errors. Over the years, companies realized that if they did not invest in technology and good purchasing management practices, they would fall behind, since this department concentrates a large part of the results.

Therefore, strategic positioning has become vital for institutions that want to gain a competitive edge in the market.

Check out some tips now that will bring efficiency to your company's purchasing management.

 

6 tips to make your company's purchasing management more efficient

Purchasing and supply management is one of the most strategic areas of a company's business. After all, good negotiations and successful acquisitions can mean increased profits and a greater competitive advantage over competitors.

However, many companies still get lost when it comes to efficiency. There is no magic formula, but there are some tips that can help you get there.

 

1. Invest in buyers’ intellectual capital

Training buyers to act effectively in the purchasing sector will make processes more assertive and strategic.

Intellectual capital is directly linked to purchasing management. Once the company invests in qualified employees, professionals are better able to face the day-to-day operations of the sector, anticipating possible risks and planning to meet all demands with excellence.

 

2. Create challenging purchasing KPIs

Creating challenging KPIs for the purchasing department can greatly boost the performance of professionals, but caution is needed. Creating overly aggressive goals can have the opposite effect and demotivate buyers by striving for something that will not be achieved.

With well-defined goals, the leader can manage purchases efficiently, better understanding the resources and efforts directed towards each activity.

 

3. Keep purchasing and inventory areas well aligned

Stale inventory represents storage costs and, depending on the raw material, the risk of loss of goods. This can happen for a number of reasons, whether due to failures resulting from idle time or expiration of the expiration date. On the other hand, the lack of materials also reduces income and can even cause major losses for the company, negatively impacting purchasing management.

The inventory and purchasing departments need to work together. This way, they can offer the maximum number of products with the lowest possible stock. It is worth analyzing the purchase and sales history, as well as forecasting demand and finding the safety stock.

 

4. Select the right suppliers for your business

Choosing good business partners is also essential to ensure better results in purchasing management. In other words, if a supplier cannot meet a minimum quality standard, this will affect your company's performance.

Therefore, it is necessary to carefully plan the selection process, seeking references, analyzing the market well, the opinions of other customers, among other aspects. And remember: the price factor should not have the greatest weight when making decisions to promote a business.

 

5. Foster good relationships with suppliers

Good relationships are crucial for successful purchasing management in the B2B market. Through transparency and sharing common goals, it is possible to build bonds of trust. In this way, the company establishes a lasting partnership that will bring benefits to both parties for a longer period of time.

Recurring purchases, that is, those that are repeated within a period, are common in the B2B market. Establishing a good relationship with a supplier, and even developing contracts, ensures that its production will not be affected, since it will be able to continuously supply its needs. At the same time, the supplier company will retain a customer, proving that this collaborative strategy benefits both sides of the chain.

 

6. Hire a purchasing management platform

Investing in a purchasing management platform helps in automation of operational tasks, reducing errors and rework.

When tasks are performed manually, processes become longer and more bureaucratic, information becomes decentralized, transactions are less secure and reliable, in addition to a series of other problems that cause financial losses and are easily resolved with the use of technology.

Another difference is that the platform allows you to generate reports and analyze data much more efficiently and reliably. This allows the leader to manage purchases more efficiently and make more assertive decisions.

An example of a platform is the solution of e-Procurement of the Electronic Market, which offers more control, performance, governance and savings for safe and efficient purchasing management. Having an end-to-end vision of the supply chain is only possible using technology.

 

If you think that Mercado Eletrônico's e-Procurement can make your company's day-to-day operations easier, get in touch with us. We are leaders in technological solutions and services for B2B, and we have already simplified the purchasing departments of large companies.

Click the banner and request a demo or talk to one of our experts!

 

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