January 16th, 2012
Many companies use one supplier/vendor for all of their printed goods (ie: copy paper, labels, signs, advertising material). There is a good chance that vendor doesn't have the capabilities to print or make everything in house. That means their vendor has to rely on one of their suppliers to get the rest of your goods. In return, they are probably putting a nice mark-up on the price and passing along those costs to your company.
In today's economy companies are looking to cut unnecessary costs anyway they can. However, they might be overlooking the obvious (such as labels, decals, and printed goods). Sure, it’s easy for a company’s purchasing department to call up their main supplier and add some labels to their open purchase order. Or buzz another person in their office to see who they are buying their marketing or printed pieces from. Or maybe your company hires someone new in your purchasing department and they continue to do what the last person did.
What companies don’t realize is how easy it can be to call some local companies, such as MR Label Co. and get pricing. If nothing else you can compare it to what you’re currently paying to see if everything is inline. I am willing to bet you’ll find that you are either paying too much, OR there are more economical alternatives that a new supplier will offer, helping to get your price down. If you can do this on several items, you can really save your company money.
Given this information, how can MR Label Co. specifically help you save money? Everything we do here is custom. Because we are NOT just pulling things off the shelf, we’re going to ask the right questions when you give us the inquiry. We want to give you something that is not only high quality but is the right label or decal for your specific application. Let us be the trusted experts to offer you the label that will meet your needs....
See this helpful article:
Purchasing may not be quite as razzle-dazzle as creating exciting marketing campaigns, but it can be just as crucial to your bottom line. If your business has a profit margin of 10 percent on sales and you cut expenses by just over 5 percent, your profit will soar by 50 percent! Without changing the profit margin, sales would have to increase by 50 percent to achieve the same result!
Before making purchases, you need to create exact specification sheets for the items you want to buy. For items such as office supplies, developing spec sheets won’t be very time-consuming, especially if you purchase some items on a regular basis.
What should a spec sheet include? Let’s assume that you want to purchase a computer. You may not want to specify a particular brand and model. You may, instead, want to specify a price ceiling or price range. You will need to list any special computer features or options that are necessary. And you may want to list features and options that you would like if price criteria can still be maintained.
Spec sheets should also specify delivery times, warranty or service requirements, and payment terms such as COD, net thirty, or credit card use.
For some products and most services you will want to prequalify vendors by getting testimonials from satisfied customers, reading product reviews, visiting vendor plants, meeting with key personnel, or perhaps sampling the product or service.
Once you have developed your spec sheets and made a list of eligible vendors, you are ready to go out for quotes. For almost any purchase of $100 or more, it is recommended that you get at least two quotes. If the item or service being purchased costs considerably over $100, three quotes are recommended. When requesting quotes, ask the vendor when you might expect to receive its quotation.
Never just send out a written request for a quotation or the vendor will be unlikely to give your request serious attention. Always talk to a salesperson. If it is a significant quote, meet with the salesperson face to face.
Never hesitate to ask a salesperson to come and visit you. Often a salesperson can influence the price and other terms attendant to your order. If the work involves developing a quote, the sales representative can usually push the estimator to work within a tighter margin.
Even if the company offers standard pricing, a sales representative may be able to extend higher volume pricing to you if you establish a good rapport. Especially if yours is a new business, a good word from the salesperson to the credit manager may mean the difference between cash in advance and thirty-day terms.
Once you have decided on a vendor and are ready to proceed with a purchase, it is always a good idea to use written purchase orders. If you don’t use purchase orders you are going to find yourself receiving goods and services that are the wrong style, type, or color than those you ordered. You may be charged a higher price or sent the wrong quantity.
The purchase order should specify the name of the item or service being purchased, and any details specified in your spec sheet. You need to state the quantity being purchased, delivery date, delivery address, shipping method and payment, and packing and receiving requirements.
You should detail each cost you are incurring and also state the total cost of the items or services ordered to avoid misunderstanding.
It is also a good idea to use purchase orders printed with your company name. If you don’t, you are more likely to be asked for a prepayment or deposit on goods or services ordered.
Check out this article we found online: http://www.businesstown.com/accounting/purchasing-overview.asp
When the product is delivered, be sure that whoever signs for the package also inspects the order. When you sign for delivery from a trucking company or other shipper you are generally agreeing that the quantity is correct and that the shipment bears no obvious damage. Have your shipping and receiving department or other personnel count the quantity or number of cartons delivered. Receiving should also check for any visible damage to the outside of the shipping containers. Receiving needs to get a copy of the receipt for delivery that has been signed. This will serve as your receiving slip.
As soon as possible, the shipment should be opened and inspected. Quantity, quality, and adherence to purchase order specs should be checked. If there is any problem, you are in a much stronger position if you call the vendor and point out discrepancies immediately.
Don’t hesitate to complain about problems or seek improvements. Call the salesperson you have been dealing with. Most vendors want to build long-term relationships with their customers!