There are several benefits that can come forward when your business begins to define who and what purchasing involves for you company.
It’s usually good to start by defining who is a buyer, what things they can buy and what tools they can use to buy the items and services.
This has strong ties with accounting, as the right credit card or purchasing terms need to be established to maximize the cash flow of the business.
Monitor Supplier Performance
Then usually the next thing that needs focus is on the Suppliers. To thrive, the business needs to establish core suppliers, monitor costs, negotiate the best pricing based on volume and evaluate supplier performance.
For some businesses, safeguarding your suppliers and costs may be of strategic importance to your business. Other businesses may want to focus on making sure that the costs are shared with Sales, to ensure current product pricing.