A dependable purchasing system is developed for accuracy, efficiency, and speed. But despite all your precautions, issues that range from organizational shortcomings to administrative errors could still affect your company’s purchasing procedures.
SourceDay identifies some of the most common issues you’ll likely encounter during the purchasing process and the best ways to address them.
Wrong Orders
If your relationship with the vendor is good enough, call them immediately to fix your mistake. Accidental orders are actually common these days, but you need to act quickly so as not to mess up activities on your vendor’s end. You should implement a system wherein more than one individual approves orders. Make sure all orders are as accurate as possible.
Damaged or Defective Items
You could refuse to accept the delivery of items if they’re damaged. Take note of the condition and take photos as proof. Make sure the delivery person is there when you’re documenting. You should then notify both your supplier and the courier, and try to resolve the issue as soon as possible. Keep in mind, however, that the responsibility rests on the courier.
Overspending
Purchases that go over your budget are usually due to a coordination or communication gap right in your buying process. But you need to address this as early as possible. Regular budgetary reviews and updates that affect the financial health of all links connected to your supply chain, including appropriate budgetary changes, would go a long way towards helping ensure that you don’t go over budget again.
Rushed Orders
Impulse purchases, phoning in orders instead of going through the proper channels, and making biased decisions according to supplier preference are among the most common culprits of purchasing errors. A comprehensive and well-planned purchasing system would allow for more thoughtful decision-making, as well as prompt accurate orders. With this in mind, consider using purchase order management software so you could easily track all orders.
Because the majority of purchasing issues could be attributed to human and administrative errors, you could take the necessary steps to rectify the situation and prevent them from happening again. While this might take some time, once you get the perfect purchasing system going, it would save you more time and money in the future.
