How do I Write a Purchasing Policy?
Writing a purchasing policy may seem like a waste of time, especially in a small company. But having a formal policy that all employees understand will help ensure that you spend your operating money wisely. As you grow, written policies will become critical to your success. Write your purchasing policy with those who will use it in mind. If they are unable to understand the policy, or if the process is too complicated or unwieldy, employees will become frustrated and are more likely to either make mistakes or intentionally ignore policy in order to get the job done. Decide who will have authority to make purchases on the company’s behalf. Set any limits on purchasing authority and determine who will approve purchases over those limits. Write guidelines for vendor selection. Determine how the bid process will work and how many bids must be obtained for each opportunity. Explain all criteria that purchasers should use to evaluate bids. Criteria may include price, quality, insurance, len
