27 Purchasing Leading Practices

Entering in a new year is a priviledged moment to take good resolutions. But which ones? That is the question (!). To help, I’ve listed below 27 purchasing leading practices that might give you some new bright ideas. Enjoy, and why not to let me know the ones you’ve pick-up (which are not necessarily the most trendy ones…)

  1. Develop and document a corporate purchasing policy statement
  2. Develop and document a two to three year sourcing plan based on a strategic sourcing diagnostic
  3. Supplier invoice, company receiving reports, and purchase order are matched automatically and the invoice paid, if no discrepancy exists
  4. Use the Corporate Purchasing Card to buy small ticket items
  5. The Purchasing Organization is centralized regarding ordering and control and decentralized regarding execution
  6. Shift purchasing focus from processing purchase orders to managing relationships with suppliers
  7. Shift purchase agent/buyer responsibilities from a domestic many commodity perspective to a global commodity specialist perspective, coordinating company and supplier processes for specific commodities
  8. Develop longer term relationships with key suppliers and strategic alliance where applicable
  9. Develop new strategic products/equipment with supplier involvement
  10. Company uses its knowledge and expertise to train supplier’s personnel and improve their operations
  11. Self directed commodity teams evaluate and select suppliers
  12. Establish and enforce supplier qualification requirements
  13. Select suppliers using the Least Total Cost technique
  14. Evaluate suppliers based on actual results achieved against established benchmarks in the quality, delivery, service, lead-time, price and inventory investment areas
  15. Motivate suppliers and achieve continuous improvement by providing rewards, performance reviews, and ongoing close communication
  16. Implement and use an eProcurement application
  17. Incorporate the use of expert systems to improve purchasing efficiency and effectiveness in decision making
  18. Use workflow management to achieve greater purchasing productivity and customer s atisfaction
  19. Use eSourcing to exchange information, manage and negotiate contracts with you suppliers
  20. Use B2B e-Marketplaces
  21. Execute pro-active supplier market scans to locate new competitive suppliers
  22. Learn and test Emerging Technologies
  23. Companies are using an approach to capital purchased items which includes both qualitative and quantitative factors in the analysis
  24. Acquire capital equipment based on an incentive based contract
  25. Companies are establishing relationships which give almost complete control of inventory management to suppliers for various commodity groupings
  26. Implement bar coding or RFID
  27. All inventory has been segmented on an ABC classification basis

If you ask for more, have a look at my Top 10 Best Practices in spending analysis post.


  1. Pingback: eBusinessBlog.ch - 27 glorreiche Ideen für den Einkauf 9 January 2007
  2. Holger Baeuerle 24 April 2007
  3. jp.massin 25 April 2007
  4. Jean-Philippe Massin 30 April 2007

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