Hazards Of Purchasing profession ?
 

Today's purchasers are purchasing more and more services. Purchasing services have unique hazards. These include:

1. Non completion of job by the expected date
2. Having a problematic "customer review"
3. Not getting good responsiveness from your supplier
 

When buying goods , one usually expects delivery within the schedule period as given in the P.O. But "days" in a services quote's lead time may mean one of three things:

Calendar Days: Each day, including weekends and holidays, counts towards the lead time. So, if you place your order on July 1 and the lead time is 30 days, expect your service to be complete by July 31.

Business Days: Each day, except

 

weekends and holidays, counts towards the lead time. So, if you place your order on July 1 and understand that July 4 is a holiday and Saturdays and Sundays aren't business days, expect your service to be complete by August 14.
 
 

Working Days: For some services, specific supplier employees are assigned to specific tasks.

Working days include only those days that those people actually work on your project. If an individual works on another customer's project on a certain day, that day will not be deemed a working day nor count towards your lead time.

So, if you place your order on July 1 and the individual works on your project every other business day, expect your service

to be complete in late September.

Wouldn't it be easy for you and your internal customer to be disappointed if by "30 days" your supplier meant 30 working days and you were expecting the service to be
performed in 30 calendar days? When purchasing services, personally reach agreement with your supplier on the meaning of days. And then confirm it in writing!

 

 

Now read the following articles too.....

Management's expectations From Purchasing
Crisis in Purchasing & emergency Planning

Negotiation Questions from suppliers that can Surprise you
The Supplier Code of Conduct
Entering into a Time and Materials Contract
Supplier's bid Comparison Formula
Supplier Diversity Program
Determinants of a Modern Purchasing Department
Negotiating With Suppliers Over their Policies
Procurement Project Management Plan
The Purchasing Risk Analysis
Inventory Audit Checklist
Hazards Of Purchasing profession ?
Tactical vs Strategic Purchasing
Demystifying Group Purchasing Organizations
Suppliers' Secrets For Negotiating With Purchasing
Cost Savings Reporting: Dot Your I's!
Code of Ethics in Purchase
Six Sigma to Success
 
 

 

 

 

 

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