Purchasing

4. From Order to Delivery

4.1 How much stock do you need to hold?

Holding stock ties up money and increases warehousing costs. Aim to minimise your stock levels and make delivery of supplies the supplier's responsibility.

• How reliable are the supplier's deliveries?
• How long does delivery take once an order has been placed?
• What will happen if you run out of stock?
• How much storage space do you have? Will the supplier hold stock for you?

4.2 How will you decide to order?

• For many small companies, a weekly stock check and ordering routine is sufficient. Devise your own system, reflecting the actual needs of your business.

4.3 How can you avoid late deliveries?

• Make delivery terms clear, in writing, when you place your contract.
• Ensure your supplier is familiar with the time constraints that affect your business.
• Keep track of what deliveries are arriving when. Chase them up immediately if they are late, contacting the supplier's managing director, if necessary.
• Always check what has actually been delivered before signing the delivery note.
• Agree delivery performance standards as a condition of the contract.