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Good purchasing policy for a production company

It is rather underestimated how important a good purchasing policy is. It is important to pay the required attention to this, if you want your company to continue to run well and healthy. For now, it may seem unimportant, but certainly with increases in scale, this can make the difference between profit or loss. How do you ensure a good purchasing policy? Read here what you should pay attention to.

Provide insight into current cost prices

Prices may vary. This may mean that the end product you are selling is no longer profitable. It is therefore important that you have some margin and that you adjust prices if you cannot make a profit or not enough due to the increased cost price. It regularly happens that entrepreneurs sell a product below cost, due to lack of knowledge. Not only the cost price is important here, but also hourly wages and other costs that are necessary must be included in the determination of the price for the user.

Right amount of stock

It is important that you have enough stock, but not too much. After all, this only takes up valuable space. It is also important that the products in the warehouse are sold sufficiently. Many pallets with products that are not or hardly sold are actually a loss of money. It is sometimes better to sell those products below cost, because it ensures that your liquid assets are so little and because it takes up unnecessary space.

Electric hoist and Hoist UK

In addition, it is important when purchasing that you also choose good material to work with in the warehouse. For example, do you need an electric hoist. But do you really know what’s best? It is also possible that you buy an electric hoist from the UK and it turns out to be much better than a hoist from the Netherlands. It is useful to ask the right experts about what is best. It often happens that a director buys something that is ‘nice and cheap’, but which is simply not to work with. It is better to enter into a dialogue and come to the best purchase together. In this way, the chance of better productivity is greater. It probably not only makes for a better purchase, but also more support for the users of the hoist.