Running a business means keeping an eye on every penny, and procurement can be one of the biggest drains on your budget if it’s not managed well. From office supplies to basic janitorial services, the way you buy can either save you money or cost you more than you think.
Many companies lose money because of inefficient procurement – using too many suppliers, managing orders manually, or buying items off-contract. The good news is that making some simple changes to how you manage procurement can cut costs, improve efficiency, and save you time.
Why Efficient Procurement Matters
Efficient procurement means getting what you need, when you need it, without overspending. On the flip side, poorly managed procurement can lead to delays, higher costs, and missed opportunities for savings.
Some common issues businesses face:
- Too many suppliers: Juggling multiple suppliers for the same products can cause price differences, delivery delays, and missed chances to get bulk discounts.
- Small, off-contract purchases: Little purchases here and there might not seem like a big deal, but they add up fast. How many staff quickly pop to the supermarket to grab some basic supplies for the office?
- Manual processes: Manually handling orders and invoices eats up time and often leads to errors.
By optimising your procurement process, you can get better control over spending, cut down on admin time, and make better buying decisions.
How Fewer Suppliers Can Save You Money
A quick and easy way to cut costs is by reducing the number of suppliers you use. When you consolidate your suppliers, you can:
- Negotiate better deals: Fewer suppliers mean more leverage to get better prices and terms.
- Buy in bulk: Grouping your orders together helps you save by taking advantage of bulk discounts.
- Simplify management: Managing fewer suppliers means less time spent dealing with contracts, orders, and payments.
But how can you buy in bulk without the storage or logistics to support these across multi-sites?
Bulk Buying and Managing Inventory
Buying in bulk isn’t just about saving money – it’s about making sure you have the right stock levels to keep your operations running smoothly. Too much stock ties up your cash flow, while too little means you risk running out of essential items when you need them most. It’s a delicate balance, but with the right tools, you can avoid both pitfalls.
At I-Tel Group, we start with a comprehensive audit of your past buying habits. Our audit gives you a clear picture of how much stock you’ve purchased, how often, and where you’ve overspent or fallen short. From there, we implement our Business Intelligence (BI) solution to forecast your future supply needs based on past data, allowing us to strategically plan for optimal stock levels. This means you’ll always have the right amount of stock; no more tying up cash unnecessarily or scrambling when you run out.
Once we’ve set up your inventory plan, we manage the warehousing and distribution to ensure you get what you need, when you need it. We store your products in our dedicated facilities, and with our on-demand ordering system, each department, business unit, or site can order exactly what they need. Whether it’s IT supplies, PPE, or marketing materials, your teams can request stock as needed, and we’ll distribute it accordingly.
Our solution also goes a step further by optimising delivery routes to minimise your carbon footprint. We analyse the most efficient delivery paths, reducing both your environmental impact and delivery costs. It’s all part of our commitment to helping you operate efficiently while maintaining sustainable practices.
Cutting Down on Off-Contract Purchases
Tail spend (those little off-contract purchases) can quietly drain your budget. One-off purchases might not seem like much, but they add up. Managing these purchases effectively is key to unlocking extra savings.
How We Help with Tail Spend:
- Centralise purchasing: By using a single procurement system, you can control all purchases and reduce off-contract spending.
- Bring everything under one roof: Instead of lots of small, scattered purchases, we’ll help you get everything you need in one place.
Streamlining Procurement with Automation
Manual procurement processes are slow and prone to mistakes. By automating key parts of the procurement process, such as invoicing and supplier management, you can free up your team’s time and avoid errors.
Our automated systems at I-Tel Group can:
- Save time: No more chasing invoices or manually processing orders.
- Reduce errors: Automation ensures everything runs smoothly and without mistakes.
- Improve compliance: Centralising procurement makes it easier to follow supplier agreements and keep costs under control.
Why Choose I-Tel Group?
At I-Tel Group, we help businesses cut procurement costs and improve efficiency. Here’s what we offer:
- Fewer suppliers, better deals: We help you consolidate your suppliers and negotiate better terms.
- Smart buying and inventory management: Our warehousing solutions ensure you always have the stock you need, without over-ordering.
- Control over tail spend: We bring all purchases under one system, helping you eliminate off-contract buys.
- Automated processes: We streamline procurement, making it faster and more efficient.
Ready to see how optimising procurement can cut costs for your business? Get in touch with us today for a free audit, and let’s see where we can help you save.
