Purchasing

Three requirements

Sound set of Specifications Effective buying methods Qualified and Honest purveyor

Specifications

The exact description Size, quality, weight, count These should be made clear to the

purveyor

Pars

Predetermined levels needed to meet demands for a particular period of time

Should be updated frequently Par levels are set on previous

usage, sales forecasting, product shelf life, and common sense

Pars Prevent

Panic purchasing- which is usually at a higher price

Selling out of an item Product spoilage

Dealing with purveyors

Purveyors sell for a living, do not try to outwit them at their own game

Long term relationships and maintaining open communication is key!

Some requirements

Product allegiance- when you agree to buy a certain amount, buy it

Timely ordering- depends on each company

Efficient receiving- do not hold them up for unreasonable amounts of time

Proper handling of invoices

Build a solid business relationship

Be firm on your specs and standard of communication

Proper checking, counting, and weighing of products will let the company know you are serious about the quality

Receiving

Someone will only respect what YOU inspect

You will gain a reputation if you can be beaten at the back door

Types of receiving

Simple- verify # and type of goods Complex- verify #, weight, specs,

what was ordered Blind- verify after recording what

was received (don’t look at invoice while checking)

Tools and Techniques

Regular receiving hours Trained employees Spec file Purveyor bid sheet Invoice stamp

Discrepancies

Credit requested: credit memo Credit: take off invoice (call

purveyor) After acceptance: pickup

requested

Bid sheet

Daily, weekly, monthly price comparison chart used to determine the least expensive prices

Set Standards

Make your job easier! Have purveyors fax price sheets

same time every week Have purveyors fill out YOUR bid

sheets