Whether your establishment is new or old, you will always be confronted with the need to procure goods and services. This is not limited to the raw basic raw materials that you need to carry out the production of goods, it goes beyond that to include materials services that you believe will help your company to enhance its production and distribution purposes.
Some members of your workforce may feel that you do not need it, others may feel that you need to buy some things better for them and get the work going. Both parties may present to you valid reasons to make such purchases. You are in a fix. You don’t know what to do and you have decided to let the matter rest, at least, for now. Instead of just keeping quiet, you may consider some of the factors explained in this article. They may serve as effective guide for you to make purchasing decisions for your company.
Ask your self these questions before buying stuff for your company.
Do You Need It?
There is no business decision that is worse than buying the things that your organization does not need. Some people make the mistake of buying things simply because others are buying it in their offices. No matter how insignificant the cost of buying a material you do not need is, you will end up throwing it away. Even if you feel that you may have need for it for it in the future, it is advisable that you are sure of using it in the future. What gives you the assurance that the item will not be cheaper in the future?
Apart from the finances you waste on buying the things you don’t need, you also waste time that you would have diverted into something more productive. You waste space that such items will consume till you decide to throw it away. So when next you are under the pressure to buy the things you do not need, you do well to ask your self, do we need it?
Is There Alternative?
Even when it seems obvious that procuring a material is the right decision and you feel that your organization still needs it anyway, you need to pause and look if you have alternative before you decide to get a new one.
No matter how much you have to throw around, making a procurement when you can do without it will only make you a bad manager. Sometimes, what you have presently will even make your employees more productive than getting a new one. If the reverse is the case however, you may go ahead and buy that new stuff. Be sure that you do not have alternative before buying.
What is the Cost of Maintenance?
Good things are sweet, but they also attract responsibility of maintenance. For example, in countries where power supply is bad, an entrepreneur may decide to change his generating set to something bigger so that he can power his Air conditioning system. While this may make the workers happy, it might end up boring a hole in the pocket of the company as more fuel will be consumed to power it.
The cost of servicing too may make you regret that you should have stuck to what you were using before. What point are we trying to make here? Buy stuff that you feel is necessary and that you are sure that its maintenance will not make other important activities suffer.
Have you Research From Others?
After you have established that you need to procure an important object in your office, and you are sure that there is no alternative to buying such item, and you are even sure that the cost of maintenance will not be too much for your organization to manage, it still okay if you take a pause before buying it. Who is the one selling? Is he or she taking advantage of the fact that you are related? That someone has promised to give you the best price does not mean that you can get it cheaper elsewhere.
Even if you have compared prices from another source, it is still okay for you to check the third source before buying.
The reason for consulting other sources is not just because you want to get something cheaper, it is also because you want to get a better offer in terms of durability, quality and after sales service that may be available from other sources that you are not considering presently. Take your time to look at these sources, weigh your options and make payments based on inform decision.
Will it Add Value to Your Organization?
Whether you are buying for the first time or you want to change an existing item within your organization, you should always be concerned about the value it will add. As noted, its better to buy an asset than to buy a liability. Ask yourself questions about the value it will add to you. Will it make the staff more productive? Will it generate more income for you? Will it create a better awareness for your customers? Will it increase production rate, supply rate and turnover? Will it make you spend less eventually?
If you can say yes to these and other similar questions, you can be assured that you are cleared to procure that machine. Follow the instructions given earlier and enjoy procure with the growth of your organization in mind.