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Buyer Analytics Purchasing Blogs - News About Procurement

Low Unemployment with Low Quality Jobs

As a buyer, one of your biggest concerns is the return of inflation. Back in the early 80’s most multi-year contracts entered into included escalation provisions. Prices were adjusted monthly or quarterly based upon a formula. The typical formula was based on data from the Bureau of Labor Statistics.

With unemployment in the USA just below 5%, economists predicted that both interest rates and inflation would return. Other than rent for housing, there hasn’t been much inflation in the USA. Interest rates were projected to increase by the Fed but have recently stalled.

I read a good article titled Where Have All the Good Jobs Gone? According to the author, the loss of high quality manufacturing jobs appears to be a key factor. While jobs are being created about 70 to 80% were low paying jobs in the retail and food service sectors. Historically these jobs pay about 17% less total compensation than a manufacturing job.

In general, retail and food service sectors like to hire their employees on a part time basis. While a manufacturer has a desire to reap the benefits of training and skills of their employees on a full time basis. This is another contributing factor driving low unemployment with low quality jobs.

So the real question is when will inflation return? Do we have to wait for a return of manufacturing jobs before we need to change how contracts are managed? This will be the topic in an upcoming post.


Free Project Management Tool for Buyers

ProjectLibre is an open source replacement of Microsoft Project. I opened an existing Microsoft Project file in ProjectLibre without losing any data. The program is available on Linux, Mac or Windows. The learning curve appears to be the same as Microsoft project. If you have existing Project files just simply open them in ProjectLibre and keep going.

Here is a screenshot of ProjectLibre:



Many suppliers don’t have access to a Microsoft Project license. This is a great way to make them part of the team and help your company track project progress.

Download ProjectLibre now.


Free Requisition Template for Services

Now available for free download is an Excel Purchase Requisition for Services.

Use the purchase requisition to request services from procurement. List items on the requisition to include description and extended price. Requisition provides purchase approval and information needed by procurement to place a purchase order.


5 Reasons to use a Purchase Requisition Form

Ever wonder what information is required by procurement to place a purchase order? Much of the data needed will come from the supplier - but certain information is needed from the requestor. Check out the purchase requisition template for parts.

  1. Segregation of Duties

    Segregating duties for requesting supplies and placing purchase orders provides sound financial controls. Some of the worst kick back schemes caused by unethical employees and suppliers can be avoided just by segregation of duties.

  2. Funds Authorization / Budget Control

    Requiring a requestor to document the purchase simply avoids spending money without management approval. This helps create a no surprise environment when budgets are evaluated against goals or spending limits.

  3. Transaction Efficiency

    With this one document users can efficiently provide procurement with what's needed to place a purchase order. Procurement can avoid countless email gathering the information needed for a purchase order.

  4. Requestor Engagement

    If you are strained for resources - get department users involved in the procurement process. If they can provide accurate information the time and cost to complete a purchase order will be greatly reduced. This will allow procurement to spend more time on value added activities.

  5. Performance Tracking

    Track the time to place a purchase order by requestor and buyer. Use this information as a tool to track department customer service data. For example, percent purchase orders placed in 3 days.

Here is the link to download the purchase requisition template for parts.


Bid Evaluation Templates for Excel

Three new templates have been added for bid evaluation. Use these templates to evaluate the purchase of services, single item (large purchase) and multiple items. The single item template could also be used the summarize a bid evaluation of a single lot or by sub-category. In addition the templates include criteria to evaluate supplier qualitative factors. Factors used are:
  • Compliance with specifications
  • Service rating
  • Quality rating
  • Technical rating
  • Firm price
  • Terms of payment
The templates use Microsoft Excel and can be easily modified to your needs. The templates work with all version of Excel including IOS, Mac and Android. Here is the link to all of the free procurement templates.