One of the best ways in which to reduce expenditure is to deal with well recognized supplier. Not only are you likely to get prompt and efficient service, your queries will receive prompt attention as the supplier needs not only your current and future business but also to maintain their good name when and if they need you as a reference. You can also be entitled to discounts and their wide range of quality products.
Managing office supplies can be carried out internally or outsourced to cost reduction specialists. For the organization choosing to do their own cost reduction, the list below should provide some strategies on how to best tackle this management task.
While established brands guarantee you quality, substitute products from less well-known manufacturers can supply the same product with no loss of quality at a considerably reduced price.
Check the prices from manufactures to ensure that you also benefit from price reductions or promotions that the manufacturer may sponsor. You also need to be aware of any price increases that may make alternative suppliers more attractive.
Look at the whole of the product range used. Do not only target the products most used. While small individually, the total cost of the "insignificant" items may be the one carrying the bulk of your expenses.
If you have negotiated supplies for a term, protect the item pricing for the full term.
Be careful when checking through item price lists to ensure that the items being compared are for the same quantity. Different manufacturers or supplier can use different quantities per item to influence purchasers with seemingly lower prices.
For toner and ink cartridges, consider using re-fills. A good number of organizations provide these products at up to half the price without a significant reduction in quality, warranties included.
For specific products, rarely used or expensive, you may want to ensure that purchases of these are carried out under controlled conditions to reduce unnecessary expenditure.
Some vendors provide systems for ordering online. These systems can help in managing the costs where the number of items is extensive.
Any terms within the contract must be clearly stated. Where ambiguity is noted or lack of clarity is evident, avoid signing until clarification is provided. Where markups or charges are specified, make sure that the price formula used is available for you to calculate final price.
Do not accept incentive checks lightly. While these incentives will reduce the cost of some items, other items may increase and also expose you to penalties which may be brought to bear should you wish to move to another vendor.
Check changes in item codes. Quite often, when vendors change codes, they also take the opportunity of increasing the price.
While dealing with one supplier has its advantages, avoid a contract that will lock you to purchasing from the one vendor. Any contract you enter into must be to your advantage rather than to the supplier's.
Resources:
Sharon Chapman, Save Money On Office Supplies, Suite101.com
Published by DJG08
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