Procurement strategy

Strategy for a simple purchase: Best practices

Published By
Jeremy Ferrer
Tags
Purchasing profession

Simple (or non-critical) purchases are products that are easy to buy and have a relatively low impact on financial results. The quality is standardized.

Strategy: simplifying processes

Simplifying the supplier selection process

For simple purchases, suppliers are not frequently questioned. Once every two or three years, the specifications are reviewed. Some users are asked to express their needs, their satisfaction/dissatisfaction with current solutions. Special attention will be paid to The supplier's range :

  • Is it large enough?
  • Is it deep enough?
  • Is it long enough?

You will prefer providers that cover the broadest spectrum. Simplification requires a reduction in the number of suppliers.

Simplifying the administrative process

Spending one euro in your businesses triggers a restrictive administrative procedure. This is justified by the need for control and control of expenses. This is entirely legitimate and the purchasing department is the guarantor of strict compliance with procedures.

Detailed study of the control circuit

From the purchase request to the receipt of the product and the payment of the bill, it is necessary to do a very analytical job of description.
The objective is then to remove as many steps as possible. The use of Internet portals is ideal for creating simplified procedures, commonly known as workflows.

Development of controls a posteriori

Simplifying procedures does not mean doing away with controls. Computer programs allow you to set limits per order, spending limits per month, and message messages in case of purchase that do not correspond to the settings.

The ability to provide you with accurate reports on time is a major criterion for select the purchase supplier simple.

Impact on negotiation

Prices will be carefully compared between suppliers at the first negotiation, but they are not the strongest element. The most important element in negotiation is what your supplier will do to remove costs from your organization:

  • the budget monitoring that he carries out for you;
  • the dashboard at a given frequency;
  • monthly billing based on your requirements.

Examples of simple purchases

Products on the catalog

Products with a high standardized service content

  • Company cars.
  • Business trips.
  • The transport of single packages.
  • Messaging.

Commodities purchased in small quantities

  • Standard screws and bolts.
  • Simple adhesives.

A lot of Class B products fall into this category.

Management of the purchasing function

What is the buyer profile for simple purchases?

The juniors

You would think that the juniors would be happy to get started with simple purchases. These are purchases that require a good knowledge of business processes. In this sense, they can provide a good testing ground for a new recruit to discover the mysteries of the organization. Very quickly your junior will find himself cramped with this wallet, which you will have to quickly complete with heavy purchases.

A purchasing assistant

A portfolio of simple purchases can very successfully be entrusted to a purchasing assistant who, due to her seniority and her knowledge of the order placing procedure, will be able to propose real simplifications. It is an excellent way of recognition for these people who have an empirical knowledge of the buyer profession.

The purchasing delegation

Simple purchases are the ones that can be delegated with the most benefit. Delegating does not mean abandoning the case.
With a small amount of purchasing training, a nurse will be delegated to buy everything she needs to support her infirmary. In practice, it will very well take care of work clothes and the needs of CHSCT in general.

Outsourcing Simple Purchasing

Simple purchases are the most appropriate for outsourcing because they represent few challenges for businesses and can quickly become a source of unproductivities. Class C is the most time-consuming and more and more large companies are choosing to entrust these purchases to specialized outsourcing companies such as Sourcing-Force.com.

Conclusion

Reducing the costs of acquiring simple products will likely lead you to choose general suppliers rather than specialists. Distributors legitimately find their place in the panel of simple products.

Buying strategy recommended: reduce the time and money spent on these products through product standardization and effective treatment.

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