News Article - 23 May 2012
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It is vital that small businesses adopt good procurement practices in light of the recent global credit crunch, an expert claims.

According to the Chartered Institute of Purchasing and Supply (Cips), the credit squeeze is continuing to affect the British economy and businesses should be examining their procurement and purchasing operations in order to identify potential savings.

Roy Ayliffe, Cips director of professional practice, suggests that outsourcing some purchasing operations can save companies money, particularly in adverse economic conditions.

"It would be unwise for firms to outsource their purchasing operation as a whole, but what they can do is outsource the purchasing of certain categories to specialist organisations who are particularly good at that," he explained.

Small businesses looking at ways of outsourcing parts of their operations can invest in accounts software to make handling their finances easier.

IT Week reports that smaller firms should have clearly defined procurement policies in place and rigorously enforce them to protect them against fraud.

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