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Are You Overspending On Supplies?

Are You Overspending On Supplies?

Photo by Tim Gouw from Pexels

Is too much of your company’s budget going on supplies? Below are just a few ways in which you may be able to cut costs. 

Shop around

Many of us stay loyal to the same suppliers for years. This loyalty can sometimes pay off – some suppliers may offer loyalty discounts and other rewards. Even in these cases where you may be able to take advantage of loyalty perks, it’s still worth taking the time to occasionally shop around. There could be much better deals out there that still allow you to access the same quality tools and materials. Once per year, consider always shopping around for quotes.

Go paperless

A lot of companies are realizing that they can do away with paper. A lot of information can now be shared electronically without having to print off documents or receipts. By going paperless, you can reduce the costs of paper, ink and envelopes. 

Bulk buy

Buying some items in bulk could work out cheaper in the long run. Many suppliers offer bulk discounts to encourage clients to buy more at once. Just be sure to check the expiry date when buying perishable items in bulk – there’s no use buying a load of milk or a load of printer in bulk if you’re unlikely to use it all before the expiry date. 

Outsource help

When it comes to ordering huge quantities of supplies, it can often pay to outsource help. For instance, many construction companies outsource a third-party to deal with lumber takeoffs. This can reduce the overall cost of materials and ensure accuracy. Some restaurants may similarly hire a supply chain service to ensure that ingredients are constantly being ordered and replenished, while manufacturing companies may hire help when it comes to supplying materials and lubricants.  

Limit waste

If supplies are wasted, it’s pretty much money down the drain. By taking measures to reduce waste, you can maximize the amount of supplies that are put to good use so you aren’t having to replenish as quickly. Below are a few ways to limit waste:

·         Track material usage: Tracking material usage allows you to get a good idea of when items need replenishing as well detecting when certain supplies are being used too quickly.

·         Introduce strict quotas and measures: A strict quota could include allowing each employee to only print off a certain amount of documents per month, while strict measures could include pouring measures in a bar. This ensures consistency of quality as well as reducing waste. 

·         Track expiry dates: It’s important that you’re aware of expiry dates so that supplies that are about to expire are used in good time. 

·         Store supplies properly: If incorrectly stored, supplies may go to waste if they are damaged or if they spoil. Security may even be important to prevent certain materials getting stolen. 

·         Re-use offcuts: In industries like construction and manufacturing, it may be possible to re-use offcuts of certain materials for other projects. 

·         Give employees incentives: It may be possible to encourage employees to use less waste by offering rewards to employees that produce the least waste or rewarding everyone so long as a waste limit isn’t exceeded. Feel free to get creative with rewards. 

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