Oman National Training Institute: How to Have Better Purchasing Techniques?

Tuesday, 28 July 2015

How to Have Better Purchasing Techniques?

Better buying techniques is essential for financial success in an organization. Since purchasing budget comprises a large part of company's budget, purchasers have directly proportional impact company's profit margin. Learning better purchasing techniques is one vital step in maximizing company's purchasing budget and minimizing marginal costs.

Below is a brief guideline on how to have a better purchasing techniques:

1. SELECTING QUALIFIED SUPPLIERS

Depending on the service or product required, this can take ample amount of time and efforts. Taking time to research the most qualified supplier will definitely pay off. Internet is a great tool in researching service or product supplier, as there will be plenty in the market. Yellow pages is another tool, and even personal contacts with colleagues will pave the way in the search process. It will help to have a checklist of what information about the supplier you search for as you would like to know, the company's background and details.

2. PREPARING AND EVALUATING A BID

Bidding process allows for comparison and objective choice among qualified suppliers. This process facilitates competition as purchasers search for competitive prices and quality products or services. Pooling of potential suppliers is also possible and easier this way. However initially, purchasers must clearly indicate their set of specifications and objectives.

3. NEGOTIATION TECHNIQUES

Successful negotiation requires skill, practice and proper preparation. Good negotiators produce win-win solution for both the buyer and the seller. Some important points for purchasers to take into consideration are as follows: