Business Ideas

Benefits of Single Source Procurement for Workplace Consumables

Businesses big or small rely on a lot of workplace consumable items to complete daily tasks. The items can vary greatly, from stationary, toiletries to electronic items. In some instances, promotional material such as brochures and even staff uniforms fall under this category. Whatever the need may be organisations sometimes rely on one vendor or multiple vendors to fulfil these requirements.

Some organisations make the mistake, of buying certain items from different vendors, when most of them can be sourced by a single vendor or few key vendors. This causes over complicated procurement practices, causing unnecessary expenses to organisations. Here are some reasons as to why a one vendor policy can actually benefit the organisation.

Time saver: managing multiple supplier relationships is not easy. If you really log the time you spend, contacting vendors, checking prices, placing orders , making payments etc, it can be quite extensive. And sometimes keeping track of them can be a problematic issue as well. However, when the vendor list is smaller, or you rely on one vendor for most of your consumables the process becomes much easier and less time consuming.

Reduced cost: when you place larger orders with one vendor, you are at an advantage to better negotiate rates on multiple product categories. The volume of products alone can give you advantage to purchase some high value products at promotions such as projector sale Singapore as well. Continuous patronage with high volumes can get you cost savings in the long run with economies of scale.

Eliminate misuse: when there is a standard buying process, you can eliminate unnecessary spending or misuse of procurement for individual gain. Rogue suppliers and even employees misusing purchasing for personal gain can be eliminated when all supplies are bought from a standard supplier.

Better control: a single vendor is able to provide the organisation reposts on purchase patterns and spend, making it transparent and controllable. Actual use of consumables can also be better understood with opportunities for waste reduction. A streamlined purchasing policy means that purchase orders are raised in an organised manner with each department being accountable for their use.

Hidden costs management: multiple delivery costs and other hidden costs can be eliminated when you have to deal with only one or few suppliers.

Efficient inter departmental interaction: with better controlled procurement policies, the department can streamline operations and efficiencies with finance, making it possible for them to focus more on their core business activities.

Therefore as you can see, when an organisation streamlines its purchasing operations, especially when it comes to work place supplies, they can reap as whole lot of benefits in the long term.

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