Cut Costs with Procurement
Save Money and Time
Procurement is a large umbrella that covers all sorts of different functions within an organization. And the meaning of procurement continues to adapt as business’ needs change.
For example, in the past decade, workers’ mobility increased and smartphone technology improved. Now, businesses have access to more mobile solutions than ever before. Traveling workers can now use solutions like Vroozi Expense to submit all their on-the-go expenses through any mobile device.
Modern solutions are constantly evolving to keep up with the market’s needs, but one of the key objectives of procurement solutions will always be saving money. A healthy business has healthy finances, and procurement gives businesses the power to take care of their fiscal health.
Here are 3 ways you can take care of your business’ fiscal health.
Buy for needs and analyze hidden costs.
Purchasers sometimes choose to buy bulk to get a better discount on each item. While the savings may seem valuable, if product goes wasted or sits in storage, then the extra cost to buy more items is a total waste. Often times, the extra product becomes outdated or irrelevant before it is ever used. Sometimes there are associated hidden costs with buying too much as well. There is a certain cost associated with maintaining the product and having your money tied up in goods instead of free to spend elsewhere.
Measure the benefit of the expense.
Cost is definitely not the only important measure on any expense, so recognizing the benefit from an expense is key. Too often, businesses blindly spend on a perceived need or want only to realize the expense is really not helping anyone. (This is especially important with recurring expenses that could potentially go unnoticed in the future.)
Use cloud-based procurement software to simplify your purchasing process.
Another huge hidden cost is time. The cost of time is not always easy for companies to calculate, but many purchasing companies sink a lot of money into processing time. Time spent doing manual, repetitive tasks can be time spent on money-making strategic work. Shifting labor tasks to automated software frees up cash flow and time.
Saving money can help businesses thrive, but everyone knows there is more to be analyzed in purchasing than just the numbers. Making smart, informed purchasing decisions is about balancing cost, quality and the values your business represents.
Learn more about how to save money and make better purchasing decisions with a live Vroozi Demo.