To err is human, but when we keep making the same mistakes over and over, it can quickly have a detrimental impact on our businesses. Your procurement team is in charge of handling your BOM and sourcing the components and parts required to move your business forward – you’ll find a range of Adam Tech products here – which means they have to be vigilant, resourceful and be willing to learn from the most common mistakes that plague procurement teams.
When purchasing goes repeatedly wrong, it can mean problems with budgeting, client dissatisfaction, faulty products and a slump in revenue. Therefore, highlighting the most common and the most frustrating mistakes made by procurement teams is vital. Once you’re aware of these issues, they’re much easier to overcome.
Read on to discover the most common and the most frustrating mistakes being made by your procurement team.
Excessive Spending
When your teams are pressed for time, when orders need sending out, or when machines need replacement parts, it’s not always easy to stay within budget. Excessive spending can be even more of a problem when procurement teams are limited to the number of suppliers they have available. Persistently exceeding your spending budget can leave other areas of the business strained and spread your finances a little too thinly making exponential growth even harder to obtain.
To effectively combat this issue, procurement teams should consider moving to an online, global marketplace to source their component parts. There, using a BOM tool, purchasers can search for the parts required by setting their specific criteria, including budget. They’ll also have the opportunity to peruse the latest industry prices and take advantage of offers.
Making Rushed Decisions
The procurement process can be extensive and frustrating. It often means comparing prices by hand and searching for components across multiple websites, in person or by sifting through endless product catalogues. This frustrating process can often lead to snap decisions and impulse purchases being made, especially when purchasers are pressed for time.
By switching to an online marketplace, procurement teams can find exactly what they need from an online catalogue of over 550 million guaranteed parts within seconds. Streamlining the process and allowing your teams to focus on other areas and keeping your production line moving.
A Lack of Communication
Who knows what you need better than the staff on the front line? If your procurement team can’t communicate effectively with other departments, then you can expect duplicate orders to be made, forgotten components and excessive spending to cause havoc across your operations.
When procurement teams work in unison with other departments, mistakes can be easily avoided, and your operations will work smoothly, increasing efficiency and satisfaction across the board. By using a BOM tool from Sourcengine, your procurement team can download and share the processed BOM, highlighting what components your teams can expect to be delivered and when.
Final Thoughts…
Learning from our mistakes and utilising technology will help drive your business forward. Consider the points above to effectively support your procurement teams.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.
