Do you ever get an uneasy feeling that your purchasing system is out of whack? Are you concerned that expenditures are being made on your company’s behalf that would never meet with your approval?
Finding an agreeable balance within a purchasing system can be a hard-won victory. Some manufacturers react by over-controlling expenditures without regard for how much money is lost when an executive invests an hour reviewing purchases of $100 supplies that are fairly routine.
The benefit of coming up with a workable purchasing system can usually be measured in savings. For instance, one manufacturer had several different locations — each with its own approach to buying paper, pens and other materials at various local office supply stores. By consolidating purchases, the company saved 15 percent in expenditures.