Purchasing Services: The Pitfalls, Part I
PurchTips - Edition # 103 June 27, 2006
By Charles Dominick, SPSM
Do You Know The Pitfalls Of Purchasing Services?
Today’s purchasers are purchasing more and more services. If you’re not purchasing services yet, you probably will in the future so don’t disregard this article!
Purchasing services has unique pitfalls. These include:
- Not having services finished by the date you expect
- Having a problematic “customer review”
- Not getting good responsiveness from your supplier
This edition of PurchTips covers the first services purchasing pitfall. Future editions will cover the others.
When buying goods with a 30-day lead time, you usually expect delivery in 30 calendar days. But “days” in a services quote’s lead time may mean one of three things:
Calendar Days: Each day, including weekends and holidays, counts towards the lead time. So, if you place your order on July 1 and the lead time is 30 days, expect your service to be complete by July 31.
Business Days: Each day, except weekends and holidays, counts towards the lead time. So, if you place your order on July 1 and understand that July 4 is a holiday and Saturdays and Sundays aren’t business days, expect your service to be complete by August 14.
Working Days: For some services, specific supplier employees are assigned to specific tasks. Working days include only those days that those people actually work on your project. If an individual works on another customer’s project on a certain day, that day will not be deemed a working day nor count towards your lead time. So, if you place your order on July 1 and the individual works on your project every other business day, expect your service to be complete in late September.
Wouldn’t it be easy for you and your internal customer to be disappointed if by “30 days” your supplier meant 30 working days and you were expecting the service to be performed in 30 calendar days? When purchasing services, personally reach agreement with your supplier on the meaning of days. And then confirm it in writing!
(keep reading for a FREE Offer)
Spotlight On Professional Development Opportunities
Are you tired of not getting enough opportunities, respect, and money out of your purchasing
career? If so, you will want to earn the Senior Professional in Supply ManagementSM
(SPSM) Certification. This powerful designation has helped others have rewarding purchasing careers and it can help you,
And if you sign up for the SPSM CertificationSM Program on or before 6/30/2006, you also get these bonuses valued at over $700:
- FREE $30 gift certificate to Amazon.com!
- FREE Performance Appraisal Improvement Analysis!
- FREE CD-ROM with printer-friendly versions of the class materials!
- FREE Purchasing Performance Measurement spreadsheet template!
- FREE access to educational Web-audio interviews with supply chain leaders!
- FREE audio CD about purchasing job security!
- FREE “Guide To Getting The Most Out Of Your SPSMSM Certification!”
To learn how to earn your SPSM Certification and get these valuable bonuses, visit:
- Do you supervise other purchasers? We have a service just for you. Read more at www.NextLevelPurchasing.com/manage
- Are you considering a career move? There are over 75 purchasing jobs preferring candidates with the SPSM Certification posted at www.NextLevelPurchasing.com/jobs
Worried about purchasing job security? The report “Career Survival in Supply Management” can help you.
"Career Survival In Supply Management,"follow the instructions at