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The incentives may be given in the form of bonus, commission or increased wages. Now the main concern arises is on what basis these incentives to be given. Hence, the following criterions may be of helpful in arriving at a suitable decision:
i. Sourcing the best suppliers in order to get good quality products and after sales services.
ii. Getting the best deals from the suppliers vis-à-vis market rates (example – availed good discount rates, extended credit periods and goods return arrangement within a specified period).
iii. Efficient purchases i.e. not piling up of slow moving / dead stock/ excess stocks for a particular item in order to get good deals from the suppliers.
iv. Last but not the least, not exceeding the purchase budget of the organization.
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