Avoid These Procurement Mistakes

A smooth procurement system is essential to the operations of your company. When your procurement system runs seamlessly, you probably don’t even notice it, but when mistakes happen, nearly every aspect of your business can come grinding to a halt. To help you avoid this situation, we’ve gathered a list of the most common procurement mistakes made in procurement services.

At Source1 Purchasing, we help you enhance your purchasing power by giving you the control you need over products, contracts, and services you need to protect your brand standard. Contact our procurement services company today for a free supply-chain analysis and propel your business to the next level with Source1 Purchasing.

1. Spending Over Your Budget

Since most businesses work diligently to ensure that they stay within their budget, this is not a mistake that you might expect your own business to make. If your organization is observing an overspend, and can’t find the immediate answer, then it’s likely that you need to more closely observe your communication and coordination protocols, as a gap in one of these two areas is probably the source of your financial leak.

2. Rushing Orders

Typically, rushing a purchase order is more common in a new business. Established businesses, however, can also make this mistake if their procurement department is newly organized. One way that you can prevent anymore rush orders from happening is to work with a procurement service company like Source1 Purchasing. We have the experience and knowledge to help you get what you need in a timely manner.

3. Reinventing the Wheel

While there are many different programs that you can use to manage your supply chain, it’s important to make sure that your system is organized, efficient, and clearly communicates with everyone involved. Source1 Purchasing can offer you the dedicated team of professionals you need to enhance your purchasing power, control your orders, and increase your visibility to track your program performance.

4. Omitting Key Parties

When you make decisions that affect multiple parties or departments, it’s critical to make sure that everyone is looped into the conversation. While omitting someone is likely an accident, it can cause some major hangups in the overall flow of your procurement system. Try to remember that over-communicating is almost always better than under-communicating. Ask for feedback, verify the items on the order are accurate, and communicate all options before submitting orders.

5. Being Inflexible

Even in the most well-oiled machines, mistakes can happen, which means that you need to have alternative plans in place. Whether the items you need aren’t ready at the time you place your order or they arrive damaged, your willingness to be flexible and find other means of obtaining these necessities can help to ensure that you meet your own production deadlines.

At Source1 Purchasing, we are proud to be a leading group purchasing organization (GPO)  with more than $7 billion in purchasing power. We can provide you with a free supply-chain analysis, and show you how we can help you provide the services your clients demand at a savings that your business will love. Contact us today.