Purchase control is relevant. Purchasing is a delicate process in a company, simply because it has to do with the money you spend. Businesses tend to neglect their purchasing processes to focus on bigger issues, without realizing that purchase control is one of the legs a business stands on.
You need to acquire materials of the right quality, at the right quantity, at the right time and from the right suppliers for a well-negotiated price. Think of it as a skill that should be mastered.
Company spending habits tend to creep up on you. At first, they seem like the least of your troubles. You can hear a far away cry for reevaluating the spend, that some other department can deal with for now. But the reality is, controlling company spend is one of the most important assets of your business.
Why is money wasted in your company? Have you ever done a spend analysis on your company? Maybe it’s time you just stop all the processes in your company and re-evaluate where the cracks in the floor are coming from. After all, you can’t keep building the house if there are cracks everywhere!
You’ve come to a point in your business where purchase control has gotten out of hand. For years the paper-based system in your company has been the system that kept the business running in a forward motion and the odds and ends didn’t matter as much as reaching that long worked for goals. The processes are running even and there is even a little profit showing at the end of each month. It seems though that you have hit a wall in how to get over the next hurdle of actually cleaning up the debris that is keeping your business back from making a real profit. Getting your product to impress the masses takes a lot of research and a lot of putting in the extra legwork.
Who doesn’t love to spend! Who wouldn’t love to read blogs about What would be the funniest way to waste a million dollars? Or 40 Crazy Ways to Have Fun With Money. A lot of companies would love to spend millions of dollars entertaining their clients and buying employees slippers for their birthdays! The reality is, you can’t just waste money because it defeats the purpose of putting in all the effort to obtain it in the first place.
Charity leaders tend to focus a lot on doing ‘good’ and sometimes lose sight of how money is being spent in the process. One way to know if your charity spends received donations responsibly is by checking its bank statement. What does it look like? If charity costs seem to exceed donations every month by a large margin, then it could mean that you do not have enough control over your spending.