Staff Re-ordering

Many companies allow their staff to re-order supplies as needed. This can save time, and help make sure there is always stock of an item left. However, you need a lot of trust in your employees to allow them to order supplies freely.

Although the vast majority of employees are trustworthy, there is a minority that may try to take advantage of their ability to order supplies to keep items for themselves.

A solution to this problem is to allow employees to request supplies, but require each order to be signed, logged, and sent by management. If the supplies are then checked and logged when they arrive, any discrepancies can then be checked quickly and traced back to a member of management and staff. This allows employees to re-order items, but limits the possibility of misuse.

Another common solution is to let one or two members of staff have responsibility for ordering consumable supplies. This means that in the event of items going missing or not adding up, the order can always be traced back to a particular member of staff.

Effectively managing supply ordering will also ensure that the same supplies are not ordered repeatedly, which may happen if five employees all place orders for an item low in stock before the first order arrives.

Buying Second Hand Supplies & Equipment

Although it is not usually thought of as a way of buying business equipment, there is potentially a great deal of money to be saved by buying second hand equipment. Second hand equipment is most commonly available from three locations:

(i) Personal / Business Sellers

These are individuals or businesses that have purchased a product and no longer need it. They can normally be found in classified adverts in newspapers or magazines, particularly those aimed at second-hand sales (E.g.: Exchange and Mart / Auto Trader).

You will normally be able to view the product, but in the event of problems you have no real comeback with seller. Prices on individual sales are normally low, depending on the product, its age, and the seller's honesty in pricing.

(ii) Shops

There are many second hand shops, these sell goods brought in by individuals or businesses. They buy them very cheaply and then sell them on with a profit.

In a shop, you will be able to view the item and possibly test it. In the event of a problem you will be able to take it back, although you will not have a full guarantee. Prices on shop sales are normally higher than buying from individuals; however you get better peace of mind in the event of a problem.

(iii) Auctions

Buying from an auction can be the cheapest way to buy a product; however, it is also the riskiest. Careful bidding can bring in products for far below their actual value, but there is a big risk that products will not work. As you will not be able to test the product, you have no way of knowing whether the description is correct.

Many auctions sell goods as seen, which means if the goods do not work, you have almost no chance of getting your money back.

Online auctions are similar; however in these you have no way of even seeing the product (apart from a possible picture). This means you cannot be sure of the quality of the item until after you have paid for it. However, most auction sites do have some cover in the event of falsely described goods being sold, before bidding you should always find out what your rights are for claiming your money back on faulty goods.

Auctions can be a good way to bring in bargains, but caution must always be used to help prevent paying over the odds or buying broken / damaged goods.

Advantages of Second Hand Equipment

(i) Price

Buying a product second hand will normally save you a lot of money off of the standard new retail price. You may have to search to find an appropriate item at the best price and condition, but good condition second hand items are normally much better value than their new equivalent.

(ii) Availability

If a product used by your business breaks, and it is no longer sold new, it may cause problems if you have to change models. However, by buying second hand, you may still be able to replace it.

For example: You have £2000 worth of toner and spares for your photocopier which are useless if you cannot get that particular model.

In this case, buying second hand is probably the only way you will get hold of the same model, saving you £2000 of wasted supplies and spares.

 

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