If you’ve ever handled edible oil procurement, you know it’s not as simple as sending out a purchase order. Prices rise one week, crash the next. Shipments get delayed. Quality sometimes isn’t what was promised. And one bad call can end up costing a business a lot.
Over time, I’ve noticed the same mistakes repeating across companies, big and small. Here are nine that come up the most—and some thoughts on how to avoid them.
1. Picking a supplier just because they’re cheap
Cheapest isn’t always best. In fact, it’s often the opposite. A low quote usually hides compromises—maybe weaker quality checks, maybe unreliable delivery. The short-term savings can easily turn into long-term headaches.
2. Not checking certifications properly
Skipping paperwork is risky. Standards like ISO, HACCP, or FSSAI aren’t just “nice to have.” They’re proof the oil has been tested and meets safety rules. Without them, you’re leaving yourself open to compliance issues—or worse, a recall.
3. Relying too much on one supplier
It feels easier to stick with a single source, until that source suddenly can’t deliver. A bad harvest, political issues, even a transport strike can shut down supply. Spread your risk. Mix local and international options. Have backups.
4. Forgetting to follow market signals
Edible oils don’t exist in a vacuum. Crop yields in Brazil, new palm oil policies in Asia, even global crude oil prices—all of these push the market up or down. Buyers who don’t watch these shifts end up reacting late and paying more.
5. Overlooking storage and logistics
Buying the oil is only half the story. How it’s stored, shipped, and handled matters just as much. Poor warehousing can spoil product. Delayed logistics can disrupt production. A lot of “savings” disappear if the supply chain isn’t planned properly.
6. Treating sustainability as optional
This one’s become a big deal. Whether it’s RSPO-certified palm oil or traceable soybean oil, customers and regulators want proof of responsible sourcing. Ignoring it risks contracts, markets, and reputation. Sustainability is no longer an extra—it’s part of procurement.
7. Weak contracts
Spot buying feels flexible, but it also means you’re exposed when prices swing. Without structured contracts—like forward deals or long-term agreements—you’ll always be at the mercy of the market. Good contracts give stability, even when things get unpredictable.
8. Overlooking local suppliers
Imports dominate the edible oil trade, but local suppliers can sometimes step in faster and cheaper, especially in a pinch. Many companies don’t even consider them until it’s too late. A balanced approach usually works best.
9. Treating procurement like a transaction
This is the big one. Procurement isn’t just “buying stuff.” It’s about relationships. A supplier who sees you as a partner is far more likely to pick up the phone at midnight when there’s a delay, or prioritize your shipment when supply is tight. One-off deals don’t buy that kind of support.
Final thought
Mistakes in edible oil procurement can be costly, but they’re also avoidable. If you focus on quality, diversify sources, pay attention to the market, and treat suppliers as partners, you’ll build a much more resilient system.
At the end of the day, procurement is less about chasing the lowest price—and more about making sure the oil you need actually shows up, on time and in the right condition.