Most Common Procurement Problems with Simple Fix
Mistakes in orders
Mistakes can occur by inattention during the order creation or sending.
Instead of one product the supplier sent a different one or entangled up the quantity of the goods.
To quickly and effectively solve such problems, it is necessary to establish mutually beneficial and trusting relations with the supplier. Thus, the buyer will protect himself from such problems.
In this case, always it is better to have a choice of several suppliers, in parallel to negotiate and look for the best option for yourself. This will help save both time and money.
Excess of the allocated budget
If the procurement budget is exceeded, it is necessary to analyze urgently the current expenses and to assess whether these or other costs are rational.
Don't hastily increase the budget - try to negotiate more advantageous conditions with the supplier.
Lack of the procurement plan
With such a problem, procurement managers of new companies often face.
An accurate action plan is required for successful work of the procurement managers.
To solve this problem, it is enough to organize and regularize purchasing activity. The basic procurement plan should include setting requirements for suppliers, the possible digression of the budget, as well as a list of necessary goods. As the company develops, the basic plan can and should be improved and detailed.
In such a situation there are two ways: the purchasing manager can refuse the goods, referring to his defects or to accept it, demanding compensation.
However, keep in mind that a courier service or provider itself may be responsible for the damage. It is necessary to inform the courier and the supplier about the cargo condition, negotiate and close the issue of liability for the damage.
The procedure can be simplified if provide an item in the contract regarding actions with a damaged product on the road. It can help to reduce the time to solve such a conflict.