BEST PURCHASING PRACTICES

COST REDUCTION

This one almost goes without saying. All of your

purchasing activities should pass the cost-reduction
test.

Key Performance Indicators: Use KPIs, such as

product/service quality, inventory availability and
on-time delivery, to measure and manage your
company’s purchasing activities.
 SUPPLIERS

Build strong relationships with suppliers and keep an

updated preferred suppliers list. Leverage them
against each other to keep prices competitive.
 TOTAL COST OF OWNERSHIP

Consider the direct costs, indirect costs, transaction

costs and disposal costs of the good and services
you’re purchasing when evaluating all of the factors
associated with that purchase.
 ACCESSIBILITY

Making records accessible to your staff and everyone

involved in purchasing decisions ensures that you get
the best price and makes for a more integrated,
transparent and collaborative procurement program.
COLLABORATIVE STRATEGIC SOURCING

While strategic sourcing is key to successful supply

chain management, collaborative strategic sourcing
initiative produces even better results.
 TEAM-BASED PROCUREMENT

Involve other departments in the procurement

process so that buyers can gain a broader perspective
that will enhance their performance.
 ISO CERTIFICATION

ISO certification helps purchasing departments

measure every task, resulting in greater efficiency.
 E-PROCUREMENT

Save time, energy and, ultimately, money with an e-

procurement system you can use in every stage of the
purchasing process. E-procurement enables buyers
and sellers to connect via the Internet and through
information networking systems such as electronic
data interchange (EDI).
 TRAINING

To get the most from your suppliers, effective

negotiation skills should be a must for everyone in
your team. Train them on how to negotiate contracts
and follow company policies based on your business
goals.
 INDUSTRY RELATIONS

Participate in relationship development with industry

associations, forums and fellow colleagues. Helps you
to keep informed on industry & market trends.
 THANK YOU

Nitin Shankar Nagrale

VP Materials Management
Mobile : +91-9867672233
Nitin.nagrale@foodlink.in