Make a Formal Purchasing Plan

Online Sign Supply Purchasing

Purchasing sign supplies online can save time and money

Having a formal purchasing plan for sign making goods and services is a necessity for any small business. A plan ensures you are buying exactly what you need and using sign suppliers that provide quality products and excellent service. Knowing what you need to buy and buying it on time keeps your company from spending additional money.

When a business is first starting off it is easier to handle the purchasing process. You, as the owner, likely made all the executive decisions regarding what to buy, where to buy it from and how much to buy. As the business gets bigger, you’ll have to arrange for a purchasing manager to handle these decisions. The purchasing manager will make all decisions regarding what to buy. They should be expected to make complete orders and stay within the companies budget. They will act as the main contact between the vendor and the business.

To make sure that all the supplies needed are on hand, every business needs a system for ordering goods. Employees should know how to request goods, and the purchasing manager will be capable of making orders, receiving and paying for materials.

Purchase orders are used to keep track of purchasing activities. When it is noted that a certain material is needed, the purchasing manager is responsible for making a formal request from a particular vendor for the good. That request is known as the purchasing order. You can buy a standard purchasing order form pad from most office stores. The purchase order should include the product name, the quantity, price and delivery terms. Multiple copies are needed as one will go to the vendor, one will be filed and one will be sent to accounting.

Many sign or garment imprintable shops order online conveniently here at our online sign supply store.

Part of the purchasing plan includes receiving goods. When a shipment arrives check that the items match those listed on the packing list and are not damaged in any way. The packing list should be used to verify the receipt and checked against the invoice from the company. An internal receiving report can be used to notify the person in charge of inventory, the employee in need of the item, and the person in charge of accounts payable that items have arrived.

In developing your purchasing plan give priority to items that cost more and items that are more valuable to your business, such as those you use most often. You will also want to consider how long it takes for items to arrive once you order them, and the quality of the shipper that you are using.

Make sure that you are frequently shopping around for good deals on items. Some suppliers offer year-round low prices, while others have special sales that make them more attractive at different times of the year. Buy wisely and build up a reputation with your suppliers that will make you a valuable customer of theirs.

A formal purchasing plan isn’t the most important thing for your small business to develop, but doing it right from day one creates a pattern and avoids potential headaches from struggling to buy correctly for your company’s needs.

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