2-8.3 Review Item Purchase History

Reviewing an item’s purchase history is another sound source of previous spending data. Purchase histories contribute to the development of a clear understanding of the existing purchasing process while providing an opportunity to determine whether any steps require modification or elimination. Some benefits of reviewing purchase histories include:

• Tracking orders from point of sale to delivery.
• Controlling inventory discrepancies and late orders.
• Determining the extent to which suppliers can lower prices.
• Improving the quality and timeliness of the delivered product or service.

When reviewing item purchase histories, it is also important to consider:

• Market research.
• Product description.
• Order tracking.

The primary objectives of reviewing the item’s purchase history are:

• Determine whether to renew contract(s) with an existing supplier or switch to a new supplier.
• Evaluate whether products or services that were purchased met specific Postal Service needs.

Use of purchase history data is as simple as obtaining them, because the information can be found anywhere from contract files to reports of contract awards. The purchase/SCM team can look back at products and services purchased in the past from a given supplier, review the terms and conditions of previous contracts awarded, and compare pricing information to determine whether any changes or modifications need to be made in the future.