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ONE SOURCE SUPPLY
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ONE SOURCE SUPPLY lowers your total purchasing costs! Ford. Caterpillar. Motorola. GM. For the past several years each of these leading companies have implemented aggressive supplier reduction programs with the intent of buying more materials from fewer suppliers. Why? Because they realize that the single most effective way to reduce purchasing costs is by minimizing the duplication and redundancies associated with using too many vendors. Ever hear of hidden costs? Those are all the true costs of purchasing that lie below the surface of each transaction. Costs you may not see on paper but may even be greater than the value of the materials you're purchasing. They exist and occur in every company regardless of size. In 1995 the National Association of Purchasing Agents published a study on the true costs of issuing a purchase order for a firm with 250 employees. The bottom line? The true cost is $218.00 per purchase order generated! Unbelievable? Not really when you break down the costs.
Regardless if your company is larger or smaller than the example, what this study proved is that the more items you can place on a single purchase order the more cost effective your purchasing efforts become. Say you have a requisition for 10 various items ranging from sandpaper to various packaging supplies to adhesives. You could call 10 suppliers for pricing, write up and place 10 purchase orders, expedite 10 orders, get charged for freight 10 times, receive 10 different shipments and reconcile 10 different packing slips to each purchase order, approve payment on each of these purchase orders, and then draft 10 checks for payment. Sound crazy? Yes, but it's common practice at many companies today. Sure, blanket orders help, but you still can't truly optimize your purchasing time if you buy from "one-dimensional" companies such as packaging distributors or safety supply dealers. That's where ONE SOURCE and its purchasing efficiencies and a total value other companies just can't match! We can provide all of your supply items, on one purchase order, with just one call! Call ONE SOURCE to help develop your supplier consolidation plan today! Before consolidating to ONE SOURCE, this company purchased its supply items from several distributors. This means that each item shown below had its own purchase order. By consolidating their purchases to ONE SOURCE. They reduced their hidden costs by over $2,000.00! And that does not include the material cost savings on their purchases they get from ONE SOURCE as well. When you stop and think about it, this is a really smart way to do business! |