UK organisations could be losing out on millions of pounds every year as a result of widespread failure to control and manage the procurement of high-volume, low-value items like office products, says a new survey.
The survey, conducted by telemarketing company EuroBadger on behalf of OyezStraker, found that although organisations widely view such items as petty cash, around a third spend more than Â£100,000 ($180,000) a year on them.
And this is only part of the cost, according to the survey. Over 50 per cent of respondents said they spend up to an hour, and sometimes two, correcting problems with their suppliers’ invoices or deliveries – longer still if the company uses a number of different suppliers.
Many organisations admitted they were not aware of the effects this has on their time, and therefore, business profitability.
According to financial director at OyezStraker James McCallum, the problem is that there is little or no centralised buying control on stationery and other office supplies as there is with IT, for example.