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:
When reviewing item purchase histories, it is also important to consider:
The primary objectives of reviewing the item’s purchase history are:
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.
