No-one likes to lose money in business. But you probably will if you operate without a well-defined procurement process.
First you miss economies of scale and supplier discounts because you rely on individual staff striking random local deals. Second your staff waste valuable hours playing detective and matching up unanticipated spending and incomplete paperwork, or trying to reconcile purchase orders and invoices. These indirect costs can be painfully high. According to the National Audit Office it costs £45 to manually process just one invoice.
But it needn’t be that way. We can help you work out a procurement plan tailored specifically to your organisation. Or we can step in and help; you can outsource procurement to us and we will run it on your behalf.
How does this work? One of our clients is a company that had been receiving 20,000 invoices a year. It wanted to outsource purchasing to us. We now act as the company’s ‘procurement clearing house’. We combine company orders and consolidate them for suppliers. This means fewer purchase orders out and fewer invoices in. We’ve introduced efficient ways of purchasing, eg using a purchase card system which has eliminated 80% of invoices at a stroke. And our client is delighted with our management information on how money is being spent in the company.
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