PurchTips - Edition # 170

 

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Picture of Charles Dominick, SPSM, SPSM2, SPSM3

How Purchasing Should Work With A/P

By Charles Dominick, SPSM, SPSM2, SPSM3

Is Your A/P Department a Help or a Hindrance?

When Accounts Payable (A/P) and Purchasing work well together they can improve cash flow, strengthen supplier relationships, and increase savings. Negative synergy between these two departments often leads to problems that increase supply costs and jeopardize deliveries. Use the tips below to improve your relationship with A/P as well as purchasing performance.

Improve Order Accuracy and Invoice Matching - A recent Aberdeen survey of 150 companies found that the average company manually processed over 300,000 invoices per year. This high volume of data entry leads to invoice keying errors which can slow payments to your suppliers. You can help improve order accuracy by making suppliers repeat PO numbers back to your buyers when placing phone orders. Include a clause in your contract requiring suppliers to match invoice line numbers to the line item numbers on your purchase order. Offer your support in enrolling suppliers into electronic invoicing and payment initiatives which promise increased accuracy, decreased A/P labor and improved procure-to-pay cycle times.

Change Payment Terms to Match Company Needs - Changing economic conditions and your company's cash flow situation can demand that you change your standard payment terms with suppliers. Work with A/P and conduct regular analysis to determine optimal payment terms. Use this analysis to revisit decisions such as whether or not to take advantage of early-payment discounts from your suppliers.

Optimize Buying Channels - You can help minimize the number of non-PO transactions processed by A/P by publishing and enforcing preferred buying channels (e.g., eProcurement, ERP system, etc.). Guiding your spend into the proper channel ensures that each expenditure has been given the appropriate review. Plus, the visibility provided can help you reduce your maverick or off-contract buying. Just be sure to keep A/P in the loop if you anticipate significant changes to their workload.

(keep reading for a FREE Offer)

Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html

The Latest Purchasing News!

FREE Offer!!!

Do you struggle to keep up with the latest purchasing developments? Then check out our FREE report "Staying Up To Date With Purchasing Using RSS!" This report teaches you how to get the latest purchasing news, trends, and more brought right to you!

Do you worry about not being able to keep up on the latest developments in purchasing? Then check out our FREE report "Staying Up To Date With Purchasing Using RSS!" This report teaches you how to get the latest purchasing news, trends, and more brought right to you!

Do you worry about not being able to keep up on the latest developments in purchasing? Then check out our FREE report "Staying Up To Date With Purchasing Using RSS!" This FREE report teaches you how to get the latest purchasing news, trends, and more brought right to you!

To get your FREE copy of "Staying Up To Date With Purchasing Using RSS," follow the instructions at www.NextLevelPurchasing.com/purchasing-trends.html.


Free Procurement Training & Certification Starter Kit

This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

Click here to learn more

Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.