Big businesses across the world are stuffed full of departments. Sometimes, it feels like there’s a department for everything under the sun – HR, sales, marketing, generation, and so on. Of course, this is because it makes delegation and smooth operations much easier across a large organization. For many small companies, it doesn’t feel as necessary to make these distinctions. In these businesses, there are far fewer departments – and they often consist only of one or two people. However, one department that seems to be consistently ignored entirely by small businesses, is the purchasing department.

Purchasing departments are responsible for buying the external goods and services a company needs to operate. This could involve anything from materials to products, to arranging delivery partners. Although many small business owners attempt to take control of these areas themselves, having a dedicated purchasing department – even if it’s just one person – can be invaluable for a number of reasons.

Stress-Relief

If you are the owner of a company and you are trying to take control of all its purchasing needs, this is a lot of work. The same is true of anyone in another position trying to do the same. Buying equipment and services whilst balancing the books and ensuring that no area slides over-budget is a full-time job, and treating it as a sideline task is not good for anyone’s mental health.

A dedicated role whose only job is to manage this task will take a huge weight off your shoulders, allowing you to focus on other, more vital areas of your business’s development.

Attention to Detail

Another benefit that will come with a dedicated purchasing department is attention to detail. In turn, this will lead to you finding better deals, saving money, and acquiring better products and services.

For example, if you need to form a partnership with a pallet racking supplier to equip your warehouse, a purchasing department will be perfectly placed to research options and choose the best fit for the company. Doesn’t that sound better than simply picking the first search result you come across because you don’t have time for anything else?

Consolidation

It may be that you don’t have just one person currently managing purchasing alongside their other work. Sometimes, small companies allow other departments and individuals to simply buy what they need ad hoc and bill it to the company account. As you can probably tell when looking at it objectively, this is a bad idea in more ways than one.

Practices like this can easily get out of hand, and it only takes one person to make one mistake before your business could be landed in financial trouble. It also makes you more susceptible to fraud and other crimes. It is much better to consolidate the responsibility for purchasing into one department or person. 

Conclusion

As you started your small business, having a purchasing department may have been the furthest thing from your mind. However, all companies need to purchase items and services in order to run, and as you begin to grow, a purchasing department will become a necessity.

© New To HR