A condition to successful business development is to plan and work strategically with business related purchases. But what is strategic purchasing, and what factors do business owners need to consider when making purchases and negotiating?
What does strategic purchasing mean?
Strategic purchasing is a process in which purchasing decisions are planned, implemented, adapted and reviewed, to help the business achieve their long-term goals. In other words, purchases are revised from a holistic perspective, to ensure that the business doesn’t just operate today, but can grow long-term. More concretely, it can be about finding the right distribution channels, building cost effective solutions, and identifying what suppliers will deliver products of high quality at the lowest possible price. Purchasing strategies, however, can vary greatly depending on industry. An e-store selling books will have completely different needs than a grocery store, and the strategy needs to be tailored accordingly.
What should I consider for a successful strategic purchasing process?
1. Long-term goals
First and foremost, develop a long-term vision for the company, and make sure that all employees are aware of the vision and their role in achieving it. This will make it much easier to create a concrete plan of how you can reach your goals.
2. Involve the entire organisation
A prerequisite to rationalise the business is that it is prioritised by management. Only then will all parts of the business work together to increase profitability.
Statistics and facts are crucial to identify the shortcomings of the business, and to do something about them.
What conditions do you have in terms of resources, and how can they be utilised for maximum effect? Can you find alternatives to something that is very resource demanding?
5. Explore different options
Even if you already have a supplier who does a good job, you need to be sure that you’ve made the best choice based on your goals and conditions. Review all distribution channels and compare them to your competitors – have you made the right choice based on quality compared to cost?
How can PostNord simplify strategic purchasing?
Do you need help to get statistics about your business, to decide how to rationalise it? In PostNord Portal Business you get access to – not only reliable reports about your company’s deliveries – but also tools to simplify planning, make your operations more efficient, and to check your logistics flows. All you need to get started is to create a free business account.
For more information, click here.