Purchasing activities are vital to a company. Therefore, over the years, managers have come to view the area as a more strategic vision. Therefore, companies seeking growth and wanting to remain relevant in the market must invest in purchasing planning. Otherwise, they run the risk of falling behind.
Therefore, more efficient acquisitions minimize errors, reduce costs and produce significant results, which is why planning purchases in advance is ideal. And for this process to be successful, managers must be aware of possible errors that can be fatal to any operation and compromise results.
Want to learn more about purchasing planning and how to make it more effective? Discover the five mistakes you should avoid.
1. Bureaucratic approval process
While some companies do not maintain order in their processes, and teams make quotes without much criteria, others are more bureaucratic and follow more rigid procedures for approving purchases, which delays decision-making.
To avoid this scenario, finding a balance and investing in a process that is in line with the company's objectives is the most advisable thing to do. First, do market research and consult experts on best practices. management.
A automation of this process with online platforms is a resource recommended by corporate purchasing experts, which contributes to bringing more practicality and innovation to the sector. This also aligns internal operations with the most modern practices.
With the help of technology, the purchasing team can then focus on more strategic tasks, such as implementing improvements that will contribute to the growth of the company as a whole.
2. Purchasing in inadequate quantities
Excess inventory is synonymous with losses for the company. Stale products compromise working capital and run the risk of spoiling.
At the same time, making fewer purchases than necessary can put production at risk. Without essential inputs, the responsible sector cannot continue producing the items.
Identifying the correct time to repurchase and minimum order quantities are essential data that must be studied by the sector to ensure the efficiency of future acquisitions.
3. Lack of inventory control
Monitoring inventory levels makes all the difference. When planning your company’s corporate purchases, you need to work together with other areas of the supply chain to accurately assess all materials that remain in stock.
Up-to-date information also ensures that the sales department is well informed and that the company does not run the risk of negotiating a batch of goods that do not actually exist. This practice should be part of the department's routine to avoid inconsistencies that could compromise the company's image in the eyes of its consumers.
4. Not monitoring performance indicators
Performance indicators (or KPIs — Key Performance Indicators) are crucial for monitoring the performance of purchasing processes. Their adoption by the company increases productivity rates, promotes greater integration between the different sectors of the company and indicates the real demands and priorities for the business.
There are many KPIs that can be used in purchasing management. Among them, we can mention the performance of suppliers, the productivity of buyer, saving and purchasing lead time. To make the most of these tools, managers need to determine which ones will be used according to the company's strategic objectives.
5. Evaluating suppliers without a technological system
Technology can be a great ally for companies' purchasing departments to better manage their supply sources. After all, sticking to rigid, manual processes risks compromising acquisitions.
e-procurement tools automate the supplier selection and evaluation process. This type of solution evaluates the Providers in a fast, practical and transparent way and allows you to choose those that meet your business needs. The system also allows you to register suppliers and optimize negotiations.
Be careful that mistakes like these don't get in the way of your company's purchasing planning. Check your internal processes, invest in technology and good practices to make your purchasing department more efficient.
Do you have any other tips for good shopping planning? Leave a comment with your opinion!
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