Launching the world’s first free e-procurement system got me thinking about “firsts”.
If you’re going to automate your company’s purchasing and control your spending, you need a place to start. So for my first “real” blog post (so far, they’ve mostly been about the status of the project), I thought I’d point you in the right direction with a little piece of Purchasing 101.
Managing your company’s spending is just like managing your personal finances. If you want to cut the waste and spend less, the best place to start is by just keeping track of your expenditures.
Even before you set yourself a budget or try to change your spending habits (that comes later), if all you do is keep track of where the money is going, somehow magically you will spend less. (this is well documented – I didn’t make it up)
In the business world, that means using Purchase Orders. If you don’t start recording it, if you don’t have one place that everyone has to go before pulling out the check book or that corporate P-Card, there’s no way you will ever get to Step 2.
So if you’re not using Purchase Orders to track your spending, forget everything else for now and do just that.
Even something as basic as a Purchase Order form or an Excel template is better than nothing. Better yet, download a free copy of SpendMap. It’s way easier and you’ll get much better reporting so you’ll have the information you need to get to Step 2, whatever that may be.
Do you have any other tips or tricks that you can share with our readers? If so, please add a comment, below.