How to Efficiently Analyse and Manage Business Expenses

Procurement is a key expense for most businesses and one that rightfully gets a lot of focus in terms of how to analyse, manage and minimise the costs involved. The various processes involved in procurement are time consuming – from researching different suppliers, generating quotes from various suppliers, analysing the costs between suppliers and making the final decision on which supplier to choose. As a result, streamlining this entire process is also an important cost-saving exercise.

How to Manage Procurement Spend

Managing spend is a long process of collecting, categorising and assessing data spend habits in order to cut down on procurement costs, improve efficiency and monitor workflows. The procurement cycle also involves various other activities such as requisition processing, inventory management and sourcing.
Every business, regardless of size or type, spends extensive time and resources managing this spending. For companies looking to mitigate this massive resource and cost expenditure, procurement outsourcing is a viable solution.

What is Procurement Outsourcing?

Procurement outsourcing involves a company outsourcing their procurement functions, with the acquisition of goods and services, through a third party. This does not mean that the company loses control, but instead it utilises the support of third party services to increase efficiency.
Many businesses do not have the time and resources to efficiently deal with the various factors and processes involved in procurement. Often, it is far easier, less time-consuming and more cost-effective to engage an expert in this line of work.

Key Benefits

Companies often lack the internal staff to conduct procurement processes in a way that involves analysis and detailed cost comparisons. Many smaller companies cannot afford a purchasing department at all. They might have one person who buys for the company, so very little or no cost reduction, vendor negotiation, contracts, and price analysis take place.
Larger companies have the issue of inconsistent procurement processes because one department does not know what the other departments are doing. This leads to increased costs, inconsistencies, mistakes and inefficient goods and services management.

How CostSmart Helps

CostSmart can help companies of all sizes analyse and manage external expense costs, such as securing and comparing suppliers, ordering of items and comparing costs between various parties, acting as an intermediary agent. We can compare the costs, value propositions, service levels etc. between different suppliers to provide the best recommendation on which supplier you should choose. CostSmart can then manage external expense costs and provide the most appropriate suitors to clients.

We also provide storage and distribution services for businesses, allowing them to save time and cut costs through smart supply chain management. We can source, store, manage, and deliver everything from your own products to branded merchandise, uniforms and workwear to stock, equipment, promotional materials, marketing + print collateral, records management, archives and all non-core products for your business.

Find out more about how we can help or get in touch today.