Buying limits
Review. If your company’s trading is suffering, it might be worth re-assessing order levels for supplies you purchase, as your existing policy may no longer be appropriate.
Tip. Ask your bookkeeper to work out your purchase-to-sales ratio over the last couple of years as a guide to current ordering levels, and reassess them accordingly.
Incentives. Stationers and other non-trade suppliers sometimes offer “gifts” to place an order for a specific item or if the total is over a certain value. These are usually of doubtful worth, therefore you, and those staff responsible for re-ordering, should consider if a different supplier may provide better value, even though they aren’t offering tempting incentives.
Responsibility. Who in your organisation places orders with suppliers? It’s often surprising how many junior and inexperienced staff are responsible for procuring trading and non-trading goods.
Tip. Review and, if necessary, restate your buying policies and make sure those staff responsible for purchasing understand them.
Create your profile to unlock this advice and many more.