Get Your Operating Costs Down?
Every company wants that! Only practice shows otherwise because businesses pay on average 15 to 30% too much to their suppliers.
The reasons for this are diverse:
- The absence of an experienced or trained buyer or a purchasing department
- Not systematically following up on expiry dates of contracts
- Not checking contract conditions at pre-planned times
- Not enough (re)negotiation to obtain a correct price
Companies that do have a purchasing department also don't always have a guarantee of the best conditions. This rarely has to do with the competencies of the responsible buyer(s), often they simply don't get around to (re)negotiating all existing contracts sufficiently.
15 to 20%... Is There Really That Much Stretch in My Operating Costs?
Our experience proves there is. The figures below don't come from some research but from the analysis of our own customer portfolio.
Operating costs are very diverse and make up an average of about 15% of a company's total costs. It's about copy machines and phone exchanges, but also about forklifts, insurance premiums, personnel costs (not the wages, but things like the management costs of the social secretariat, meal vouchers, temp staff), telecommunications, printing (e.g. letterheads, business cards, commercial printing, ...), office supplies, waste, all kinds of maintenance (e.g. cleaning, dry cleaning, technical inspection), car leasing, security, waste, ... and so much more.
From our analysis it appears that we save an average of 15 to 20% on these operating costs. We reach the upper limit – and more! – when the conditions haven't been reviewed in a while. But even with relatively recent revisions, we notice that we can tighten the conditions and savings still lie between 10 to 15%.
Why Call on a Procurement Expert?
A number of valid reasons in a row:
Lower Operating Costs
That's the ultimate goal. It's also what we achieve once we get to work for our clients. On top of that, we work with a "no cure no pay" model. If we save nothing, it also costs nothing.
Fast(er) Savings
Thanks to our expertise and years of experience, we know what the current rates are. This means we quickly see where we can reduce costs and where not. So no unnecessary time is lost on dossiers where there are no optimizations to be gained. Moreover, we start with the expenses for which there is (still) no contract or where the contract will expire in the near future.
Bigger Savings
Where an employee of a company without procurement experience is usually satisfied because he/she can realize savings, we go a good deal further.
Insight into Start, Extension and End Dates... of All Your Supplier Contracts
Dates for cancellability or tacit renewals are lost sight of. This causes many opportunities to go unnoticed to optimize conditions and prices. We map out the contract end dates, so that these expenses also don't slip through the cracks.
Who is Buyology?
We've been in the procurement business for more than 20 years. More than looking for savings, it's about getting our clients to pay the right price in function of their profile and the most recent market developments.
The type of companies we work for ranges from fast food pizza chains to large packaging producers, industrial laundries, non-profit companies, consultancy companies, catering companies, etc.
For a non-binding intake interview, contact willemijn.martens@buyology.be
For more info: www.buyology.be