business advice, information: is4profit

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Article Index
Purchasing
A Co-ordinated Approach
Drafting the Spec
Finding Suppliers
Negotiating a Purchase
Managing Stock
Supplier Relations
Reviewing Performance

Purchasing

2. Drafting the Spec

2.1 Ask the users to help you define exactly what you need.

  • Get your employees to suggest cost-saving opportunities. Provide incentives for doing so.
  • Use customer feedback records to tell you what is good and what needs improving.
  • Ask your suppliers to suggest improved products and services.

2.2 List the important features of the item you are buying. For example, size, quality, technical features or delivery schedules.

  • List critical factors in order of importance.

2.3 Other factors may rule suppliers or individual products in or out.

  • Compatibility with existing systems may be a deciding factor.
  • For long-term supplies, choose a reliable supplier that is unlikely to go out of business.
  • A guarantee is only significant if the supplier will honour it.
  • Technical skills or training may be needed. You may have to take on specialist staff.
  • Expansion options may be important.

2.4 Good technical support may be essential.

  • Assume everything that can go wrong will. You need to know how quickly help will arrive and how much it will cost.
  • Find out if spare parts will be available and how experienced the support staff will be.

2.5 For major purchases, put together realistic lifecycle costings.

For example, when buying computers, the main costs lie in running and learning how to use the system.

  • Other lifetime costs include installation, consumables and maintenance.
BHP Infosolutions

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