In today’s competitive market, products are being produced cheaper and faster than ever before. As a purchasing professional, it’s crucial to source materials that boast longevity and a low price point. Read on for 5 easy tips to follow for success in your purchasing department.
1. Cost vs. Value
While a low quote may be tempting for a purchasing professional, it may have unforeseen (i.e. expensive) repercussions. Materials that are sourced from the open market have an increased chance of being counterfeit. This is especially risky with medical and electronic components, as e-waste is often cheaply recycled resold as new. Instead, consider the value of every purchase, and whether a cheap component is actually perform in the long run.
2. Be Flexible
Does your vendor operate from one location? Or supply one aspect of your operation but not the rest? Consider a multi-purpose vendor with a larger breadth of product offerings. With vendors that handle a variety of needs—from production materials to office supplies—it takes less time for you to buy and administer those orders. It’s always a good idea to communicate your needs early to determine whether they’re a good choice for your company.
3. Master Your Trade
With a working understanding of your trade, you can operate the basic procurement needs. But why not take that a step further? Extensive knowledge of your trade can help you ask application-specific questions to suppliers. In addition you’ll be able to substitute or alter materials that perform equally, but will save you money in the long run. Many companies offer tuition reimbursements for professional accreditations at colleges and universities. Why not learn about your trade and polish off your resume in the process?
4. Communicate Often
Communication is key for a productive team and steady flow of products. We all know running a purchasing department is a busy job, but keeping open communication with your vendors is crucial. This way, you can monitor shipments, keep your deadlines, and anticipate any production delays before they affect your bottom line. Which ties into #5.
5. Anticipate Roadblocks
Even the most diligent procurement manager will encounter an issue down the road, whether it be in-house or external circumstances.
When it comes to manufacturing and global sourcing, we can’t anticipate natural disasters or local emergencies that will affect production in that area. Anticipate issues miles down the road and prepare a worst-case scenario. You’ll be much better prepared to handle issues with a game plan.
The IBS Electronics Group
The IBS Electronics Group is an ISO 9001:2008 global distributor of electronic components. With an extensive line card of over 700 manufacturers, the IBS Group maintains over 10 warehouses and offices in Asia, Europe, and the Americas. Value-added services include supply chain management, vendor consolidation, and original electronic components at a reduced cost. Send us your Bill of Materials or Request a Quote with us today.