Why do: Managing your business purchases is a strategic factor that involves all departments of the company. The general idea is to optimize existing resources for the purpose of generating financial profits. Those who work with inventory or warehouse need to have, in an easy way, a way to visualize all the purchases made - both by products and by suppliers.
How to: In this sense, it is necessary to find the appropriate balance between suppliers, customers, cost value and delivery of products.
Check out the 10 essential steps to organize your shopping management and make good deals!
1. Set Goals
The first step in organizing your purchasing management is to plan the goals of your company's management model. The ideal is to bring together the different sectors to establish a viable and realistic goal.
2. Track products
Rigorous control of your business data is an effective tool to monitor the products that need to be purchased to keep your business active. An organizational worksheet should contain all the necessary products, as well as the company stock. These two data are the point of balance of efficient management. You can create a table, as in the example below, with a product inventory, entering the code for each one, the name and the unit of measurement used.
3. List of suppliers
The next step is to maintain an up-to-date list of trusted suppliers who can deliver quality materials with affordable prices and good delivery times. A complete registration, like the one shown below, is a good way to do this.
This spreadsheet should contain the name of the company, the products it provides for you, specific data (telephone, address, contact and email) and whether or not there is a formal contract.
4. Good relationship with suppliers
The relationship with suppliers is an important step in the management process. In some cases, it is best to have multiple sources of suppliers. In others, the ideal is to keep a supplier on an exclusive contract.
5. Purchase negotiation
The part of the negotiation is fundamental in managing the purchases (and the accounts) of the company. It is always necessary to seek more affordable budgets without, of course, harming the final quality of the product. Purchasing control should also be carefully monitored in the management worksheet.
6. Inventory Management
The goal of stock management is to find the solution for maximum product availability with the lowest inventory possible. You have to keep in mind that stationary stock means that your money is also stationary. So you need to find a way to keep inventory smart.
7. Maintaining safety stock
Stock is a key item in the game of purchasing management. You need to maintain the security stock to improve the level of service provided, act as protection against any buzz in the market, and protect you and your customers from any kind of uncertainty that may occur in the demand for the products.
8. Sales analysis
Always keep the data well updated. You need to know the demand for your products, the types of materials offered, how many products are sold and how long. At the end of the month-to-month follow-up of the worksheet, evaluate issues such as:
- Average Value Pay per Product;
- Average Amount Paid by Supplier;
- Total Purchases per Month and
- Best Supplier by Product.
9. Increase customers
The goal of any business is to generate profits and increase the number of customers. The company's organized purchasing management makes new buyers interested in its products. So you need to know your target audience to meet the demand.
When organizing the management of purchases, you can not forget the basic networking tool with all links in the chain: suppliers, employees and customers. Good relationship helps you optimize your business and generates good points for your company brand.
Was it easy to understand the importance of this monitoring? At LUZ, we offer a ready-made purchasing management which can help organize this process and bring even more results to your company!