Top 10 guide to buying goods and services during a recession

The relationships that exist between organisations and their suppliers represent an area that is often overlooked and undervalued, especially during a recession.

It is vitally important to implement procurement policies in a fair and equitable manner. Equally it's really important to establish positive personal and professional relationships and clear communications with your suppliers and their staff.

• Holding onto your best suppliers is very important at all times. They are a key part of the team that enables your organisation to function. They should provide products and services of good quality at a competitive price, maintain quality control certification, hold all necessary environmental licenses, deliver on schedule and have the capacity to correct problems.
  
• If your suppliers are sub-standard this could ultimately cost you your business. Most companies purchase on the basis of quality of products and services and advantageous pricing. Value for money is always a priority, so when selecting a supplier invite quotes from a number of organisations to ensure you demonstrate value for money. But then build longer-term partnerships
  
• It is also important to consider the profit requirements of suppliers -- remember that they are business people and are often operating to make a profit, in order to remain solvent. If they can't make a profit then there will be less competition for you to choose from whenever the recession ends!
  
• Enter into sensible negotiations, ensuring you secure your objectives, but assist them where possible by understanding their own business requirements. Ideally, try to establish contract terms that provide incentives for both parties to achieve mutual benefits.
  
• Assist your suppliers by being efficient and courteous by making prompt payment, provide ample lead time for delivery and fundamentally treat them as you would like to be treated by your clients.
  
• Ask for reference names and contact details within their existing customers. Phone or email a selection of these organisations to seek their opinion and advice on how well the supplier has performed. Ask about how long they have been doing business and how often they have used the supplier's services. Remember that ‘OK' or ‘Satisfactory' is no longer good enough!
  
• Try to ensure that you keep doing business with small locally owned businesses, not just multi-national organisations. Profits from locally owned businesses are often re-invested in the community via them purchasing other goods and services. It's the circle of organisations doing business with each other that keeps the money supply flowing and often creates new employment opportunities.
  
• And finally, ask for a discount, maybe in return for early payment - ‘Cash is King', in business now more than ever!