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Auditel

TCoP: The Key to Effective Cost, Purchase and Supplier Management Solutions

By 31st July 2012March 16th, 2022No Comments

Auditel is the UK’s leading consultancy providing cost management solutions to a diverse client base.

Through its pioneering Total Cost of Purchase┬« model, Auditel’s network of over 200 consultants delivers ethical and sustainable results. Our goal is to ensure ongoing control and management of essential business overheads, not just to achieve quick short-term wins. We aim to remove financial waste, eliminate unneccessary expenditure and to improve efficiency, leaving our clients free to focus on what they do best…running their businesses.

 

By way of an example, consider one of our clients which, prior to our involvement, had little control over its stationery procurement. A well-intentioned administrative assistant spent a considerable amount of time each week sourcing low headline prices and placing orders with myriad stationery suppliers. Although on the face of it this was achieving low purchase costs, there were a number of hidden costs to the company:

  • a large amount of financial administration was required to deal with multiple stationery accounts;
  • order volumes were insufficient to attract high discounts;
  • no consolidated management information was available to monitor trends;
  • a disproportionate amount of time was being spent by the employee on stationery procurement.

Following our comprehensive review and analysis, we amalgamated the stationery supplies into one account and negotiated a healthy discount, resulting in stationery spend falling by more than 20%. Equally as important, we introduced a system with an increased level of control, the finance team had significantly less work to do in managing a single stationery account and the administrative assistant was deployed to other tasks within the business. We continue to track stationery spend and usage, and periodically recommend further reviews to ensure that best value continues to be obtained.

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