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How to Buy Smarter with SAP SRM
A recent post in the Spend Matters Digest provides beneficial tips on how to buy smarter with automated financial system like SAP SRM. With the implementation coming closer to an end, it is vital to keep in mind the following key take-aways:
1. Focus on how to buy and not what you buy
Consolidation is the key. Instead of buying ten items from ten different suppliers, categorize the items that you need to purchase and find fewer suppliers that can accommodate a wide range of commodities. The benefits include:
- Fewer transactions that lead to faster shipment and delivery
- Fewer invoices to match and reconcile
- More convenient if questions arise
2. Buy with suppliers who offer lowest prices for the same quality and quantity
Using the coffee analysis from the Spend Matters Digest, would you buy a cup of coffee at a store next door without discount or the same cup of coffee at a store five doors down that offers a discount per cup or a free cup after a certain number of purchases? Convenience is important but it is not a justification to strategic procurement to consolidate spend.
BU Sourcing & Procurement have registered approximately 4,000 suppliers. With our supplier pool, end-users have enough options to search and compare prices among suppliers “with” and “without” contractual relationships with the Trustees of Boston University. Keep in mind those with contractual relationships may offer:
- Items or services at a contracted and/or discounted price
- Lower price-per-unit or bulk-price
- Free shipping and handling
- No returning or restocking fee
Remember, you can always suggest or request a non-existing supplier to become a registered to-do-business with Boston University in SAP SRM.
3. Contact Other Departments for Excess Inventories
Before making new purchases, always ensure to check with other departments that are known to provide goods or services you are looking for. Building maintenance or related office supplies as simple as light bulbs can be provided by BU Maintenance & Facilities without a cost. Why make a purchase and spend your departmental budget when you can get it for free? Reach out to BU Maintenance & Facilities for any questions on how to proceed with your requests for items free-of-charge.
4. Utilize the Visibility before Making Purchases
With SAP SRM in place, visibility is the key to resolving duplicate orders. Always check to ensure you know where your order is before placing a new order for the same item(s). In addition, orders exceeding budget control will not be placed until the flag is cleared. It is always a best practice to reserve funds for purchases you are definitely going to procure to avoid overspending based on the remaining departmental budget.