Improve Your Purchasing Process Now

Robert Falco
Aug 26, 2017 · 2 min read

Small-business owners overpay for lots of stuff. Healthy economies mask those mistakes; recessions aggravate them like old wounds.

Why do we overpay? The real reason (though most of us won’t admit it) is most business owners are resistant to changing the purchasing process. The number one excuse is that they are too busy. If the owner is committed to change, he or she can maximize profits.

Every business should be doing something to reduce line items like shipping, phone bills, internet bills, sanitation and even office supplies. Its mostly because we are set in our ways or just too lazy to make a change.

Change is hard. Nagging vendors for the lowest price is not the most fun thing in the world. Swapping out vendors causes a lot of problems. We are scared of someone dropping the ball or upsetting a vendor; esp. those we pay late. Commitment and courage to this change will reap some serious rewards.

It is not just about the products and services your are buying but also about how you go about buying them.


Here is a list of things you could do:

  1. Make a list of the products and services and examine what you are paying for them.
  2. Replace and consolidate vendors to maximize discounts. Sometimes vendors do not realize how big your purchases are unless you consolidate.
  3. Eliminate utility costs by eliminating seldom used equipment and hiring third party brokers.
  4. Streamline purchasing decisions and budgets by soliciting multiple bids and reviewing purchasing agreements.
  5. Use purchase management software to streamline purchase orders, budgets and approvals.

If small business owners can muster the courage to improve their purchasing departments the savings are often right there for the taking. With inflation heating up and recession nigh, those extra dollars couldn’t come at a better time.

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