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Most companies concentrate their cost saving efforts on shopping for a lower
price on office supplies. However, the actual money spent on supplies is less than
half their total cost to your organization. |
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Industry
studies indicate that the steps associated with processing an order account for 60% of the
total cost of managing and procuring office supplies.
These points are illustrated by the The Procurement Process and Total Cost of
Supplies wheels shown below. AAA Business Supplies & Interiors is uniquely able to provide you
with quality services that will dramatically reduce both your processing and product
costs.
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| The Procurement
Process |
Total Cost of
Supplies |
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If
you review your average office supply invoice, it is often for only $50.00 to $100.00.
As underscored by the various quotes below, the cost to create an order often
exceeds the actual cost of the product.
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| Purchasing
Today, June, 1997. |
| "Experts
estimate that it costs companies between $100 and $150 to process every paper-based
purchase order, regardless of whether it for a $500,000 piece of operating machinery or
$30 worth of paper clips." |
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| Purchasing
& Supply Management, 6th Edition, Text and Cases. |
| " Most
firms estimate that it costs between $50 and $150 to process a formal purchase order.
For many small purchases, the cost of the paperwork exceeds the cost of the item
purchased." |
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| Purchasing
& Materials Management, 5th Edition, 1995. |
| "Although
the variable acquisition cost per order varies widely among firms, depending on the
specific cost inclusions, today the range appears to run from approximately $40 to $100
per order." |
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| Computer,
Business Systems & Office Products, November, 1994. |
| "With the
administrative cost of processing a purchase order ranging from $175 for simple orders to
$800 for complex purchases, the volume of transactions at large companies demands a more
efficient approach." |
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