Services
Procurement Cost
IN THIS SECTION
Why Choose Reliant
What We Offer
Business Tools
National Accounts
Procurement Cost

Rebates

Facebook Twitter
LinkedIn YouTube

WE OFFER
Office Supplies
Rubber Stamps
Office Furniture
Custom Printing
Janitorial Supplies
Promotional Items
Computer Supplies
and much more...

We accept most major credit cards.


The traditional purchase order process is very expensive, and time-consuming. Factor in the number of transactions, multiple invoices, and frequent payments and the processing costs can easily rise above the cost of the particular item.

In fact, the average cost of processing a purchase order is:

  • $  96 - according to Ernst & Young
  • $150 - according to Gunn Partners
  • $190 - according to Deloitte & Touche study of 18 large companies

Reliant can help your company save money by showing you how to eliminate rogue or off-contract purchases that are more expensive than negotiated pricing.


Procurement Pie Graph


GRAPH DESCRIPTION


According to the accounting firm of Ernst & Young, your office supply expense consists of more than just the price of the product. Their research reveals an additional cost of approximately $50.00 to $150.00 per order in the Procurement Process.

The graph above is a breakdown of that process and illustrates where you incure the labor and expense. For a detailed description of what charges go into the graph above, please see the chart below.


MONTHLY ANALYSIS


Task Hours Hourly Wage Wage Extended
       
1. Identify Product 2 $ 12.00 $ 24.00
2. Price Product 2.5 $ 12.00 $ 30.00
3. Order 2 $ 12.00 $ 24.00
4. Receive 1 $ 12.00 $ 12.00
5. Distribute 3 $ 12.00 $ 36.00
6. Track 2 $ 12.00 $ 24.00
7. Allocate Expense 1.5 $ 12.00 $ 18.00
8. Payment 1.5 $ 12.00 $ 18.00
9. Usage/History 0.5 $ 12.00 $ 6.00
10. Other 2.5 $ 12.00 $ 30.00
       
  Total Hours   *Total Labor Expense
  18.5   $ 222.00

You will need to add additional figures in the "Other" task field if supply rooms are stocked and inventoried. You will also need to add additional figures if a purchase order system is used.
Reliant Business Products, Inc.
10641 Haddington Dr #100
Houston, Texas 77043
Your Office Resource Partner (713) 425-5819 or (800) 690-2745
Fax: (713) 425-5820
Additional Contact Information
Policies | Employment | Network Status | Secure | E-Mail
For questions or comments regarding this site, contact our Webmaster.
Copyright 1999-2017 Reliant Business Products, Inc. and Steven Woodall.
If you need office supplies & office furniture in Houston then please consider Reliant Business Products.