3 Ways You Can Optimize Purchases for Your Business

This article is for educational purposes and does not constitute legal, financial, or tax advice. For specific advice applicable to your business, please contact a professional.

When you’re making purchases for your business, there is a range of factors you’ll think about, from where to source, the pricing, how those purchases will impact your forecasting, and ultimately how making these decisions thoughtfully can save your business time and money. According to a report by the Logistics Bureau, businesses with optimal supply chains can have on average 15% lower supply chain costs, reduced inventory holdings, and faster cash-to-cash cycles than those not focused on supply chain optimization. Let’s explore some ways you might optimize your business purchases for your own business. 

Consider what you need to buy

First, consider what you might need to operate your business. Forecasting what types of purchases you need to make can help you better plan for how they will be implemented and how much money you need to set aside.

Before you get started looking for sourcing options, think about these factors:


Streamline your sourcing

When you’re looking for ways to source your business purchases, there is a range of suppliers to choose from. Do your research ahead of time to make sure you are optimally sourcing for your business needs.


Relationships can be key to locking in the products you want at the prices that make the most sense for your business. Each of these ways to source come with pros and cons — perhaps one is faster but at a higher cost, and another less costly but you might find yourself with much more inventory. 

Determining a fair price

A fair price for products depends on the type of item and the market conditions. You may be able to negotiate favorable rates with suppliers that you form relationships with. While it may be more labor intensive, it may also be more cost effective for you to take on more of the work in-house, offsetting some of the business purchasing costs.

Once you’re ready to make your business purchases, start planning ahead for how you will distribute and sell your finished goods. Whether you sell in person, online, or through a marketplace or a trade show, there are a multitude of ways you can start selling your products.

This month/year? Square is partnering with Walmart Business to provide a limited-time offer for sellers upgrading to a WalmartBusiness+ membership. This offer includes a 90 day free trial for Square merchants. Walmart Business offers a customized shopping experience, product assortment and tools tailored to small and medium businesses and nonprofits. Customers can share payment information, order history, and purchasing power across teams. This membership costs $98 a year and includes these benefits: 


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Deborah Findling
Deborah Findling is an Executive Managing Editor at Square. She also writes about investment, finance, accounting and other existing and emerging payment methods and technologies.


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