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Buying for your Business: Some Basics to Follow

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Business Rendezvous for July, 2006

The process of buying is one that must be carried out with utmost care. Whether it is the entrepreneur or a member of staff doing the purchasing there are certain procedures which must be followed to gain the most out of the process. Some of the basic rules that must be followed are:{{more}}

•Buy only what you think you can sell within a particular time-frame.

• Never place an order without knowing the price and terms/conditions under which the supplier is selling his or her products.

• All Purchase orders must be in writing.

• Have complete specifications for the items you are ordering.

• Have backup sources for the products that you order.

• Be loyal to good suppliers.

• Get written confirmation of promises to supply from your suppliers.

• Have promises and extras verified in writing.

Award contracts to supply products to the lowest bidder. However, do not substitute cost for quality

Follow up on orders. You may need to give the supplier a gentle nudge to get your order processed and delivered speedily.

If you have any complaints from your customers as well as yourself communicate these to your suppliers.

• Count and inspect everything you receive.

• Establish and use an inventory control/management system.

• Ask for discounts if they are not offered to you.

Always pay on time after you have verified that your order is correctn

• Submitted by the Centre for Enterprise Development Inc. (CED) a non-profit company that provides business development services to the local private sector.

We are located on the 1st Floor, Methodist Building, Granby Street. Kingstown. Telephone 784-451-2235/6. Email cedsvg@vincysurf.com or cedsvg@hotmail.com.

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