The 25 New Rights of Purchasing, Part IV

PurchTips edition #281

 

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Are You Insisting On These "Purchasing Rights" Yet?

In editions #275, 277, and 279, I introduced the first 15 of the "25 New Rights of Purchasing" to replace the traditional "5 Rights of Purchasing." Today's edition adds Rights 16 through 20. I'll continue this list every other edition of PurchTips until we get through all 25.

  1. Right Commitment to Continuous Improvement - The world constantly changes. In business, competition seems to get fiercer and fiercer every day. As such, organizations need to improve just to maintain the success they have today. For an organization to achieve maximum improvement, its suppliers must continually improve. Therefore, you need to seek out suppliers with a track record and culture of continuous improvement.
  2. Right Technology - Technological developments make doing business faster, easier, and less expensive. If your organization is ahead of the pack in terms of technology, you need to find suppliers who can work with that technology for maximum efficiency. If your organization is a technological laggard, you can find suppliers who can help your organization catch up and remain competitive.
  3. Right Contractual Terms - It's ideal for you if your suppliers simply accept your organization's standard contractual terms. Unfortunately, some suppliers will resist agreeing to certain terms as-is and changes to some of those terms - like indemnity, limit of liability, etc. - can increase the risk that your organization bears. Sometimes, one supplier's resistance to your contractual terms solely justifies selecting a different supplier.
  4. Right Reputation - Whether they are involved in a fatal factory fire, bribery scandal, or other newsworthy controversies, suppliers with bad reputations negatively affect public perception of your organization. To protect your organization's brand, it is important to do business with suppliers who are thought of positively by the public.
  5. Right Experience - Anyone can say that they can meet a buyer's requirements, but a history of doing so becomes more important when you purchase more expensive and/or critical goods or services.

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Are You Getting The Most Out of Your NLPA Membership?

Members of the NLPA get more than just articles like this by email. As a member, you also get access to:

  • The Procurement Training & Certification Starter Kit
  • The latest Purchasing & Supply Management Salaries Report
  • Leading-Edge Supply Management™ magazine
  • Members-only webinars 10x per year
  • And more!

If you haven't been taking advantage of these benefits, why not log in and start now?

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