Regular assessment of purchasing requirements is generally based on a system of keeping a certain number of each component in stock, based on previous requirements. So, if your optimum number is ten and you currently hold four, you would order six.
'Just In Time' (JIT) is intended to eliminate waste and to free up space and money normally required for the maintenance of stocks; however, it can be a high risk strategy. Things that pose a threat in a JIT company include:
It is essential when selecting your suppliers that you choose those that not only offer you the best prices, but also the best service. Some companies that have achieved ISO9000 accreditation will deal only with companies that are also accredited, seeing the quality symbol as an indication of a 'quality' company. Others might have a list of criteria that a supplier must meet before they will purchase from them.
Links to websites that contain contact details for suppliers/wholesalers in the UK. These may be of use, but you can also do a search online for others.
‘Negotiating’ is a term used a great deal nowadays, in newspapers, on television and on radio. It often seems to imply that only large companies or whole countries are involved, not individuals. However, we all frequently have to negotiate, even though we may not realise it.
This article describes alternative approaches to the process of negotiation.
Styles of negotiating need to vary according to the circumstances and the people involved. Most negotiations will be a mixture of the collaborative and competitive approaches. It is generally more productive to steer the proceedings towards collaboration rather than competition.
This article looks at methods of breathing new life into a negotiation and keeping it moving forward should you hit a stumbling block or run into a brick wall.
We all have a sphere of experience or operation in which we feel at home - this is our comfort zone. Learning or doing something new takes us outside of that area and can feel unpleasant. However, it is only by leaving the constraints of the comfort zone that we can grow and develop. In time, areas once outside the comfort zone become incorporated into it and we can push out the boundaries once more.
This article is about power within relationships and how to understand and use the knowledge to your advantage.
The quality of a negotiation depends upon two things; the quality of the basic relationship between the parties involved and the quality of the communication that takes place. A good relationship with good communication between parties should enable successful negotiation. A poor relationship with poor communication is unlikely to amount to much.
This article is about the way you behave during the negotiation process and the impact which that behaviour can have.
When you become involved in a negotiation, it is desirable that you treat your opposite number with respect and that you do not compromise your personal integrity. In essence, this means that you should not:
This article is about the need to understand ritual and culture in order to make people of other nationalities more comfortable when negotiating with you.
In today’s multi-cultural society, you may not even have to deal abroad to need to understand the ritual and culture of another society. Many companies in the UK have settled here from overseas and strive to maintain their native beliefs and traditions. Happily, the concepts involved in negotiating globally remain the same no matter where they are used.
This article looks at the practice and process of using someone else to negotiate on your behalf.
There are times when for whatever reason you may need to use someone to handle the negotiation process on your behalf. This may be because specialist knowledge is required, for example in the case of a lawyer or specialist consultant. If, for example, you are looking to buy a new telecommunications system, then it is probably safe to assume that the seller knows much more than you, as the buyer, might know. Such a purchase would most likely represent a hefty expense for your company, so you would not be able to afford to make the wrong choices. You may choose to deal with this by employing a specialist to conduct negotiations on your behalf.
This article looks at the issue of conflict and how to deal with it if it arises during a negotiation. Within a negotiating situation, there are certain rules that relate to conflict. If the parties ignore these rules, the negotiation is likely to break down into futile argument with little result for either party.
The first rule with regard to arguments is to make sure that your position is strong and clear. It is important to be well prepared and to keep your arguments well supported and to the point. The more relevant information that you have, the more effective your argument is likely to be. Irrelevant arguments are not likely to lend you credibility and a fuzzy position will indicate weakness.
Rather than having a purchasing manager responsible for just stock control and purchasing, it can be a good idea instead to have a materials manager who takes charge of the entire process from production control, through stores, stock control and purchasing, to transport. In practice, this is more manageable with a small business, and the person responsible is likely to be the owner manager.
The main types of stock that you will be handling are consumables, raw materials, work in progress, and finished goods. It is essential that you realise that stock represents money held in your business and deserves to be treated with care.