Small Dollars Add Up, It's Easy to Overspend
Updated: Nov 23, 2020
Supplies can be tricky business. They’re not a glamorous spend category, so most executives don’t give supplies too much attention. But the small dollars can add up and, if you’re not careful, there are lots of ways to overspend.
At Expense Consulting, we’ve observed many different approaches. We’ve seen decentralized organizations where any employee could place an order with any vendor. Others have a central individual who calls for three bids on every item every time an order is placed. While those are extreme examples of groups that aren’t working in their own best interests, there are many arrangements that seem optimal on the surface that turn out to be suboptimal with a little investigation.
Questions that need to be evaluated include: Does it make sense to have multiple vendors or would there be a savings associated with consolidation? What is the cut-off time for ordering and will the vendor have the product on-time? Does the supplier offer other value-added services that should be factored in? Are there ways to reduce staff involvement in the ordering process? Would your organization consider alternative products for a significant save?
While those are just a sampling of generic questions, each organization’s needs are unique which drives additional issues to be addressed. Supplies are more complicated than they seem. Let the experts at Expense Consulting help.
Every business consumes energy. We hope you find this chart useful when benchmarking your energy costs. Please note, Expense Consulting is a licensed utility aggregator, so be sure to contact us for the best possible energy pricing.
About Expense Consulting
Expense Consulting is a full-service accounts payable auditing and cost reduction consultancy, helping organizations significantly reduce operating expenses. Since 2009, we've helped hundreds of organizations recover millions of dollars of over-billings and have secured millions of dollars in future cost savings. To learn more about reducing your organization's expenses, contact us at (860) 761-3500.