Why spend analysis of workplace supplies matters
Spend analysis is a big asset to any business when it comes to managing a workplace supplies contract.
It’s not uncommon for businesses to underestimate just how much they could gain by reviewing their procurement strategy on items as seemingly straightforward as stationery, cleaning, catering or even printer toners.
These items are often purchased on the basis of habit, or even at the last minute, but a little more planning and regular analysis of spend patterns could be the key to greater operational efficiencies and improved profits.
From the smallest to the largest business, running spend analyses of workplace supplies matters for a wide range of reasons. Here are four:
Savings, savings, savings
Small, medium and larger organisations across the country have something in common when it comes to keeping an eye on costs and looking at where sensible savings can be made. By working strategically with the right workplace supplies partner to look at where spend is going in a much more detailed way, they can open up opportunities to reduce spend in all categories.
The first step to this is identifying all sources of spend, across departments, sites and business units. Good suppliers can help businesses do this and assist in consolidating all this spend data into one central database.
Supporting people at all locations
One vital part of determining where the money is going is taking a detailed look at site by site spend. Spend patterns often vary from site to site. There may also be pronounced differences in the way end users at different sites are using workplace products and services, but any of this can go un-noticed until spend analysis is done.
A good supplier can help an organisation to categorise its spend, not just in terms of product category, but by location, department and end user.
By conducting in-depth analysis, a workplace supplies partner can help to identify patterns and habits. This may help to determine training needs as well as where spend products could be replaced with equally suitable, yet more cost-effective alternatives.
Ultimately this helps to ensure that people at all locations, receive equally high levels of support.
An open view
Business will be able to make their initial decision to go with a particular supplier even more beneficial if the supplier works with them to ensure both parties have a completely open view of workplace supplies expenditure across all categories.
A breakdown of spend, analysed on a monthly or quarterly basis, that is made visible to everyone who needs to see it, can empower people to work even more effectively.
By sharing information, supplier and customer can continually extract data and filter out non-core transactions for analysis. This partnership working enables businesses to find ways to reduce spend that they may not have done on their own.
Protect quality standards
Spend reduction doesn’t need to mean a lowering of product quality. Most businesses have customer relationships, employee morale and reputations to protect, which means that quality shouldn’t, and doesn’t, need to pay the price for reduction in spend.
Empowered management information can help businesses see where non-core items can be replaced with the most suitable high quality alternatives, and make this choice in view of all the facts. When decisions are made without more rounded analysis on the table, there’s often the risk that price will beat quality when it doesn’t need to.
If you would like to discuss how to make savings on your workplace consumables please contact Banner on 0845 2264708 or email joinus@BBanner.co.uk