Purchasing recently ran an article on best practices for buying in a recession that contained five tips for buying in these troubled times. While most of the tips were pretty basic, sometimes the basics are best, and they are worth repeating.
The tips were:
- Put the pressure on business stakeholders
Put the onus for achieving defined savings goals on the business unit executives (with backing from senior management). - Give your suppliers a check-up
Make sure your suppliers are healthy and not on the verge of bankruptcy. Do this by insuring your suppliers are paying their suppliers on time, aren’t burning through too much cash too fast, and have the resources to weather the storm. - Help key suppliers
Start by paying promptly. Delaying payments for ridiculously long timeframes will just cost you more in the long run (since suppliers will likely not be able to get financing as cheaply as you and, at contract renewal time, will have to up their prices to cover the loss). - Don’t forget the fundamentals
Consolidate buying, extend contracts with preferred suppliers, and continually monitor your suppliers’ health. - Get Lean
Control inventory, control commodity costs, and minimize waste.