Purchasing planning is one of the most important activities for a company. Responsible for 60% of an organization's expenses, the sector deserves a strategic look by its managers and companies that want to remain relevant.
But without good planning, it is practically impossible to achieve efficiency, minimize errors, reduce costs and produce significant results. And that is where corporate purchasing management comes in, a tool that helps organize the acquisition process and optimize results.
However, for management to be successful, professionals need to be aware of errors that can harm the operation. If you are thinking about planning corporate purchases, find out the main mistakes that can happen and avoid them!
1. Not being efficient in approving corporate purchases
While some companies have unstructured approval processes, with teams that use the budget without criteria, others are more bureaucratic and follow rigid procedures, which delay decision-making.
Finding a balance by investing in an easy and strategic process should be part of any company's goals. Therefore, it is recommended to consult experts on the best purchasing management practices.
The automation of this process with the adoption of digital platforms is a welcome resource, which contributes to bringing more practicality and innovation to the sector, aligning internal operations with modern practices.
With the help of technology, the purchasing team can focus on more strategic tasks and dedicate themselves to implementing improvements that will contribute to the growth of the company as a whole.
2. Buying products in inadequate quantities
Excessive inventory accumulated in a company is synonymous with losses. Stale products compromise working capital and also run the risk of spoiling or becoming outdated.
Purchasing less than necessary also poses risks and can jeopardize production. Without the necessary inputs, the responsible department cannot manufacture the items, which, consequently, will not be delivered to customers. The result? Customers who are dissatisfied with the company.
At this point, monitoring the turnover of purchased inputs, as well as identifying the correct repurchase point and minimum order quantities, are essential data that must be studied to ensure the efficiency of future purchases.
3. Not having strict inventory control
We have already seen how monitoring stock levels makes all the difference when planning future purchases. Therefore, it is also necessary to make an inventory of the items, that is, a balance of all the materials that remain in stock.
To achieve this, it is essential that the electronic system that records inventory is aligned with reality. Periodic checks prevent possible errors. Updated data ensures that the other sectors involved in the process are informed, avoiding risks such as negotiating a batch of goods that does not exist or that had been negotiated with another buyer.
This type of practice should be part of the sector's routine. This is the only way to avoid inconsistencies that compromise the company's image in the eyes of consumers.
4. Not using KPIs in purchasing planning
Key Performance Indicators (KPIs) are crucial for monitoring the performance of purchasing processes. Without careful assessment, it is not possible to identify the sector's strengths and opportunities for improvement.
That is why adopting performance indicators to monitor results increases productivity rates, promotes greater integration between the different sectors of the company and helps to discover the main demands and priorities for the business.
There are many KPIs that can be used in purchasing management. These include: supplier performance, volume of returned goods, cost per order, buyer productivity, savings (how much the department saved on a requisition), purchasing lead time, etc.
It is up to managers to determine what the indicators will be, in accordance with the company's strategic objectives and how this assessment will take place.
5. Not using technology to evaluate suppliers
Companies now have access to a range of technological resources that ensure practicality and efficiency for all sectors of the organization.
Not using these tools and insisting on rigid, manual processes is the same as “always hitting the same key” and expecting a different result.
In addition to the problems caused by human error and mismatched information, the team wastes time and is unable to come up with quick answers and perform strategic tasks.
e-Procurement facilitates processes and makes the purchasing area strategic
With technology in the purchasing sector, tools for e-Procurement facilitate the process of validating, selecting and evaluating suppliers.
e-Procurement uses an online environment to quickly assess the Providers most suitable for your business. A system like this also allows you to register contacts, simplifying communication and negotiation with business partners. And the best part: everything is on the same platform!
Additionally, we bring an e-Procurement solution allows purchasing managers to monitor supplier performance. This way, finding a replacement without having to restart the selection and research process can be done in just a few clicks. And the production chain can continue without interruptions.
Mistakes like these are the main culprits in your company’s purchasing planning. Pay attention to internal processes and invest in technology to avoid errors and bring more efficiency to your purchasing department.
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