Is Your Company Paying Too Much?
Posted by Michelle Bucher on Thu, Jun 16, 2011 @ 02:03 PM
As a follow up to one of our latest blogs, The 5 Sins of Inefficiency, we wanted to touch on another form of automation in the work environment to help increase efficiency.
Today companies can bring automation to bear on a wide range of sourcing and procurement tasks. Virtually every dollar a company spends, in fact, can be spent more wisely if the right systems are put in place. Sage Purchasing Solutions can help give you the insight you need to get better pricing from your suppliers. Designed to work seamlessly with your existing Sage ERP Accpac system, Sage Purchasing Solutions gives you purchasing power by combining orders and simplifying your purchasing procedures.
These questions can help you determine if you need automated purchasing software to reduce costs and improve efficiency:
- Do different departments make small orders of the same types of items (for example office supplies and other MRO goods) with different vendors?
- Do you use paper forms to request purchases and gather approvals? How much time is lost as these forms sit on desks? How often do they get list in the process?
- If you use paper, spreadsheets, or an application that does not integrate with your General Ledger and Accounts Payable system, how much time do your employees spend replicating the same data?
- Do you require the purchasing procedure to be used on all purchases, or only orders about a certain dollar amount? What percentage of your total spend is actually under the control of your purchasing professionals?
- Are your employees irritated by the process of making a purchase? Do they attempt to circumnavigate your policies and procedures because they are too time-intensive?
- What is your average cycle time from requisition to receipt?
- If you add the labour costs of all of the time used by all of the people involved in your purchasing process, what would it add to the cost of each purchase?