Using standardized descriptions means that it is easy to compare the prices of different suppliers, ensuring that the cheapest is always bought, this can easily save up to 5% of influenceable expenditure.
Knowing where to put the maximum effort of staff resources means that the correct products are put out to tender, which should save a further 5%.
With this good knowledge base it is then straightforward to begin a standardization and rationalization process of products groups. Coupling this with a reduction of suppliers, costs can be cut even further and reduce the overall number of orders placed. This combined should also save another 5%.
Thus good standardized descriptions with an effective coding system underpins these key ways of saving money. Without knowing exactly how much money is being spent with different suppliers for different items it is not possible to do even the most simple of tasks like choosing to purchase the cheapest item.
For more information on specific coding structures use the links to download information, or speak to one of our representatives by calling 023 8055 4111.