How can a business product audit help you reduce costs and consolidate vendors?
No two businesses use the exact same supplies or the same volume of supplies. They pay the same prices even though their prices should be unique to their organization. Some businesses even fall victim to pricing games.
When you work with us, your pricing is completely custom to your organization. We accomplish this by performing a business product audit to help you consolidate vendors and reduce costs that drive the price of supplies.
Hard costs refer to the price you pay for the item itself. There are three components that determine your hard costs: volume, market price and product mix.
The products you buy most often are the items we discount the most. We use your business product audit to identify your frequently used items. Then, we go back to the supply chain and negotiate your cost lower on your favorite items to pass the savings along to you.
Next, we look at the products you buy less often. We use an industry-leading database to understand what big-box stores are charging for the exact same items, compare prices and adjust as needed to ensure your pricing is competitive and reduce your costs.
The more product categories you buy, the less money we charge you. If you only buy a select number of items from us, it can be difficult to decrease prices as low as you want. If you only buy copy paper, you’re not going to save as much money as you would buying copy paper and a mix of additional products.
Soft costs are the internal costs you pay to procure an item. Think about every check you write. Every minute you spend shopping for supplies online. Every trip you make to the grocery store to buy coffee. These costs are difficult to measure, but they make up 60 percent of your business expenses. Soft costs include:
- Identifying an item
- Creating a purchase order
- Locating a source
- Placing orders
- Receiving orders
- Distributing product
- Product delivery
- Storeroom management
- Allocating costs
- Processing accounts payable
- Time management