Every small business owner knows that there is stiff competition in the business of procurement. But small company owners also know that procurement may just be the break their company needs. Other agencies and large corporations recognize this as well.

If you are a potential client, you have to be equipped with means to help you through contract procurement with flying colors. Acquiring a contract is not about luck; it is about doing the right thing. As a client, you need to have strategies to gain experience in procuring contracts. These strategies should be able to transform the ability to purchase into a means of increasing profits, improving competitive level, and increasing efficiency.  In contract procurement, if you are a client, you have to know how to reap the benefits and surpass the challenges involved. There are so many helpful tools brought about by many sites that focus on contract procurement.

The Strategies

The following are strategies every client must employ to get through contract procurement with potential suppliers:

1. Know your needs. Provide your potential supplier/contractor with a checklist of what you want or need to procure, such as:

  • Right size
  • Right measure
  • Test reports done
  • Foreseen appearance and quality
  • Technical features
  • Schedule of delivery
  • Requirements in packaging

2. No over-specifications. The tendency to over-specify may:

  • Bring about negative effects on procurement strategies.
  • Result to an increase in costs of supplies.
  • Cause your company/business to be black-listed because of the heavy amounts of frustration that they get from your corporation

3. Put everything in writing. A purchasing contract must be drawn to put things in black and white, thereby avoiding misunderstandings and ugly consequences. A written contract helps in preventing such misunderstandings. Written agreements or contracts make everything formal and binding.

4. Specify terms and conditions. Any client who wants to have everything supplied appropriately should know the following:

  • Replacement guidelines for faulty items.
  • The time of actual replacement.
  • The cost of replacements and the delivery charge.
  • The supplier’s agreement to quote the order in the given time.
  • Payment for a partially incorrect delivery.

5. Payment terms. Avoid payments made in advance if you still haven’t clarified the credibility of the contractor. A discount may be asked from the supplier/contractor if you will give an advance payment. Any balance remaining could be paid within 60 to 90 days after delivery.

6. Tips. Here are some tips that you should consider as a procurer of goods and services:

  • Do not buy a product or service just because the price is low. Make sure that it will give you the benefits that you need and want.
  • If you need to spend more on certain items, implement some price-cutting strategies.
  • Concentrate on efforts to boost the quality of your products and services.
  • Keep a complete set of records of all that you have procured.
  • If you plan to have one supplier, do not extract too much from it.
  • Opt to pay with your own services and products instead of money.

Contract procurement is supposed to be a win-win situation. In this agreement between corporations/government agencies and small businesses, each party’s needs should be fulfilled so neither stands at the losing end.

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