Many enterprises fail to recognise the importance of the procurement process. And it’s these businesses that ultimately struggle with their budgets, have issues with quality and are constantly juggling customer complaints.
Understanding the most common procurement errors and identifying the negative impact they’re having on your business is a proactive and successful approach that will ensure your competitive edge remains intact. You may not realise that you’re making some of these mistakes, which is why it’s important that OEMs regularly address their current procurement procedures and take the steps needed to eradicate any issues before they cause damage to their bottom line.
So, with this in mind, let’s explore the most common procurement errors and how you can avoid them.
Going Over Budget
It’s important that your purchasing budget is adhered to whilst sourcing the parts you need. Excessive spending can lead to all kinds of financial irregularities and complications, which when left unchallenged, can spiral out of control. This often happens during the procurement process due to time constraints, ineffective planning, duplicate orders and excessive spending due to a lack of supplier options.
Thankfully, this issue is a simple fix. By digitising your component search through sourcing components from an online marketplace such as Sourcengine, you’ll instantly benefit from better control over your budget and reduce excessive spending. As well, the Bill Of Materials tool available on this site is easy and straightforward to use, whatever it is you’re looking for. With Sourcengine, you’ll also have access to real-time data, which highlights the latest deals and price cuts on your required electronic components, and as all components come with a 3-year warranty, you can shop with confidence.
Time Constraints and Impulse Buying
Unfortunately, when your procurement teams are facing demands from the assembly line, delivery dates and looming contract deadlines, the need to purchase raw materials to begin production as quickly as possible means additional pressure due to time constraints. This approach often leads to impulse buying, with little consideration given to the quality or the price of the component parts. Additionally, if communication within your enterprise is lacking, then other departments may also duplicate orders or prompt impulse purchases due to concerns over inventory management.
By moving your electronic components search online, your procurement teams will always have access to the highest quality raw materials and prioritise distribution and select components based on delivery availability.
Avoiding Procurement Software and Tools
Traditionally, the procurement process involved a team of dedicated individuals sourcing the components you need, manually. Either by reaching out to suppliers directly, sifting through catalogues or scouring one website to another. This process is now outdated, and teams that limit themselves to this approach are damaging your competitive edge and your ability to exceed the expectations of your clients.
Using an online marketplace to source your electronic components means access to BOM tools and millions of components in one place
Now you’re aware of the most common procurement errors, you can put procedures in place to ensure these scenarios are avoided.