Five Common Procurement Mistakes And How To Avoid Them

Whether you are a procurement professional or a busy business owner, common problems exist in most organisations. Below are 5 that are easy to identify, and often not too complex to fix with the right degree of care and attention.

#1 Not Conducting Proper Research

One of the most common mistakes in procurement is failing to research potential suppliers properly. This can lead to choosing a supplier who is unreliable, overpriced, or unable to meet your business's needs. To avoid this mistake, make sure to conduct thorough research on your potential suppliers, including their reputation, financial performance, pricing, quality, and delivery times.

#2 Failing to Negotiate

Another common procurement mistake is failing to professionally negotiate with suppliers. This can result in paying higher prices or not getting the best deal possible. To avoid this, set yourself a target with clear objectives about what great looks like, then aim to negotiate these with your suppliers.

#3 Ignoring Quality Control

Ignoring this vital area can be a costly mistake in procurement. If you receive products that are faulty or not up to standard, it can lead to customer complaints, delays, additional costs, and damage your reputation. Make sure to implement a quality control process and work with suppliers who make this area a key priority.

#4 Not Having a Contract in Place

This is arguably one of the biggest mistakes in procurement. Without a contract, there may be misunderstandings or disputes over pricing, delivery times, service standards, data management, and other terms. To avoid this, make sure to have a contract and service level agreement in place that outlines all the terms and conditions of your agreement with your supplier.

#5 Failing to Monitor Supplier Performance

If you are not measuring or controlling supplier performance then this can be a costly mistake in procurement. If a supplier is not meeting their obligations, it can lead to delays, quality issues or sales challenges. To avoid this mistake, make sure to monitor your suppliers' performance regularly and address any issues as soon as possible.

By avoiding these five common procurement mistakes, you can save time, money, and resources, and ensure you are working with reliable suppliers who meet the essential needs of your business.

About K Wright Consultancy: we work with business owners, leaders, entrepreneurs and investors within the UK Building Industry to unlock their hidden profit potential, using tried and tested procurement strategies without adding undue complexity or cost, even if our clients have limited time, knowledge or expertise.

Want to know more? Visit www.kwrightconsultancy.co.uk or email us at [email protected]