Have you done a deep dive into your office supplies program lately? Before my clients work with me, they will either say no or that they have always considered office supplies to be priced pretty much the same amongst suppliers, so they have never really focused on it.
Great news! We have provided some of our larger clients with six figure savings on their office supplies purchases.
But maybe you are wondering….
HOW can I optimize my office supplies program to unlock the savings?
This will get you started…
Here are some key steps that will help optimize your office supplies program.
1. Rationalization of SKUs
Many existing office supplies programs have thousands of SKUs being ordered. All but a small portion of these SKUs are unnecessary and or the highest priced items that are available for purchase. These items must be eliminated and no longer be available to purchase.
2. Order Guide
The eliminated office supplies must be replaced with a small quantity of lower cost necessary like SKUs that are of the same quality and functionality. This list of office supply SKUs will become your order guide menu of approved items for purchase.
A written workflow approval process for ordering office supplies must be established that employees must follow. The process will establish who from each department and company location can order off of the order guide, what quantities can be ordered, order frequency, and what safeguards are put in place to make sure the process is adhered to. Provisions for special approval for non-order guide items that might be needed to be ordered for a presentation to the company board members as an example can be included in the approval process.
Now for a quick case study: George, the CFO of a large manufacturing company came to me to optimize their office supplies program for their corporate headquarters and 12 facilities. Their existing program had over a thousand SKUs being ordered and little structure existed over who placed the orders at corporate or out in the field at their various locations. After many years working with Fortune 500 companies and others, utilizing our preferred pricing programs, proprietary formulas, and analytics as a benchmark, we were able to present George with a new program for the purchase of office supplies. We worked together with George and his designated team to rationalize the SKUs, establish an order guide, develop a written approval process for ordering and we provided an annual cost savings of $140K!
Let me help you!
If you want to know how to save more on your cost of goods and services and how to quickly and easily optimize your existing programs, click here to qualify for your complimentary strategy session with me to explore that…and to find out what you can do to have a results breakthrough.
I have a limited number of appointments available and request that only business owners and executive management who are ready to take the next step and serious about dramatically increasing their results apply for a time to talk.
Jack Trotsky is known by his clients as “The Purchasing Consulting Master” and “Cost Slasher.” His business owner and senior executive clients say he provides a high level of measurable cost savings, a competitive edge, and lower operating costs and increased profitability year over year. Working with Jack requires no out of pocket costs. Pay only for results – you pay nothing until he shows you what you can save. With a Fortune 500 pedigree at GE, ConAgra, and Hunt-Wesson, he launched his purchasing consulting firm in 2015 and has grown it into what is today PurchasingResults.com. Jack has a long history of transforming procurement processes, implementing and managing change while providing a competitive cost advantage for businesses across a variety of industries. He has spoken all over the US and internationally, at universities, as well as at training & employee development workshops and conferences. Jack’s clients include GE, Gate Gourmet, Retail Companies-various projects including negotiated leased space, Large Food Distributors, National Dry Ice Company, Consumer Packaged Goods Companies, Industrial Manufacturers, Service Companies, and Food Manufacturers. He currently resides in the Denver Metropolitan area.
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