Do purchasing policies have to be complex?
You need to have simple purchasing policies in order to secure the trust of customers, suppliers and other stakeholders. For a fair, open and transparent business environment, marketing companies need to have purchasing operations that are rational, in compliance with laws and regulations and should fulfill agreements in collaboration with suppliers and other business partners. This will promote mutual trust and productivity.
Let’s look at areas to consider when making purchasing policies and explore reasons why they need to be simple.
Tweet this: Good business ethics is everything because it is the basis of customer retention and business growth
Compliance: Purchasing Ethics
You need to incorporate good judgment when including business ethics in your purchasing policies. They need not be strict rules but rather flexible which also allows people exercise responsibility and sound judgment. Complying with the purchasing-related laws and regulations of all countries concerned is important if your marketing agency does international business. Even if it does local business, it will grow and have customers in the rest of the world. So the standards of business conduct and other related ethical standards should align with the best business practices in the rest of the world.
Good business ethics is everything because it is the basis of customer retention and business growth. It is imperative that you fulfill agreements with vendors and other business partners in good faith. Exceeding expectations is an icing on the cake in marketing and opens great opportunities for future business. You should understand the significance of information you obtain through trade and why such information should be kept confidential.
You need to ensure that any transaction prices are fair and reasonable. Ripping off vendors and customers is not good business practice and can minimize future business. It will kill opportunities for referrals and customer loyalty. There are a lot of things to consider when selecting vendors and customers to work with. You need to base your selection criteria on a comprehensive evaluation of price, quality, delivery time, technology, safety and past results.
When setting purchasing, you should also compare your price points with other market offerings. Quotations need to be reasonable and market-related and reasons why you didn’t select a particular vendor or customer for transparency purposes.
The Practice of Corporate Social Responsibility in Purchasing
You need to ensure purchasing of materials and other products are in conformity with laws and regulations related to the quality and safety assurance of products, people and the environment.
All products purchased must uphold global environmental conservation and must be free of any connection to the violation of human rights, including child labor and illegal employment when doing marketing projects or advertising campaigns.
Requests to Suppliers and Other Business Partners
Should you need to sub-contract other agencies, the suppliers and other business partners need to understand the purchasing policies and the rules and regulations that apply. They all need to cooperate as members of the entire supply chain. Suppliers and other business partners can promote their proposals and should be selected fairly. The same expectations will apply in areas of compliance, human rights, labor, safety, environment and quality.
The Use of Automated System for Purchase Orders
You need to ensure that the use of automated systems is there to make purchasing process easy. To ensure that your marketing agency does not spend above budget, efficient budget control measures need to be put in place through an automated system. The selection criteria for a suitable purchasing system should satisfy the following: time-saving, cost-saving and adaptability.
Procurementexpress.com is a suitable system to enhance good budget control. It helps marketing CEO’s to decline user requests and route to a more senior delegation or authority level for approval based on financial limits. There’s a graphical view of each unique workflow routing and a centralized approval screen or console to enable all approvers to approve cost requests individually or in bulk.
In addition, they can get real-time notifications via email or alerts of user requests and approvals. This helps to avoid duplicate purchase orders and saves you both time and money.
It’s an easy to use application which can be mastered in a few minutes. It’s adaptable to your preferences and is an efficient 1-click approval system to secure every aspect of your purchasing processes. It also provides tailored reports on fully customizable PDF. Procurementexpress.com will free up your time, so you can spend it on strategic matters.
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If you’d like more info about Procurementexpress.com (automated purchase control system), please contact: [email protected]