Thursday, January 28, 2010

Purchasing

Many times people wonder why we buy what we buy. Shouldn't we just buy what is cheapest? Well, in fact that is what we try to do. However, what is cheapest doesn't always show up on the initial price tag of the device.

Take computers for example. It would seem that all computers are made equal. If they were, that would make our purchasing job all the more easier! However, many things must be considered in the purchase of a PC.

1. What is the initial cost of the PC?
2. What are the long term costs such as warranties, parts, availability, life cycle of the machine, etc...?
3. Does the machine compare to others that we are considering or own in RAM memory, CPU power, electricity used, and reliability? (For a list of machine reliability look here.)
4. Ease of maintenance. Are the drivers readily available and do they work with our software?

Many times in an organization you save on repair and maintenance time if you can keep similar equipment throughout the environment. This allows you to automate processes and reduce staff costs, which can be the most expensive part of any organization.

Printers are another area where people generally want to buy what is on sale now. Factors we use in determining purchases include those found above, but also the cost of each printed copy. Many times the cost between an inkjet and a laserjet can range between 14 to 15 cents more for the inkjet. Over the life of the printer (which is generally much shorter for the inkjet) the difference in cost can be quite significant. Even enough to fund the cost of additional printers!

In short, there are many factors that go into determining an organization's technology inventory. The initial cost has to be expanded to total cost of ownership and reliability as well as a fit for the organization.

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