Consolidating a company's supply base is one of the major factors in streamlining and reducing process costs. Under our single source supply strategy, Pink Office works with companies to help gradually reduce the number of non-strategic commodity suppliers they need to trade with. By consolidating purchases made to our single website we effectively create your own bespoke procurement portal. Our POP (Pink Online Procurement) system can add any item you need to buy to the website and in turn give you full visibility and control over all purchases made.
A small reduction in a company's supply base can make substantial savings in back office and hidden or soft process costs. Few companies realise the true cost of acquisition, which is generally accepted to average above £50 per transaction. Consolidating just one supplier who you order from say twice a month can easily save over £1000 per annum. Having a single place for your staff to visit for all online ordering can also help improve the compliance of using preferred supplier contracts, which in turn reduces maverick spend. This can be particularly effective for group companies with multiple site locations.
Using a single source procurement method can also help in situations where very well meaning and conscientious staff place two individual orders with two separate suppliers to achieve a few pounds saving. They think they've done a great job and saved the company money, but ultimately they've ended up costing your business substantially more than they saved, because they are unaware of the costs associated with raising the second order. For that reason it is particularly important that any implementation plans are supported by and driven down from the top of the management chain with clear instructions to users in terms of where they should buy.
Please contact us if streamlining your non-strategic commodity purchasing is an area of interest.