A nationwide retailer with over 1,200 locations utilized one of the big 2 office supply companies to provide office supplies to their locations. Each location was allowed to source their office supplies as long as they used the chosen company’s portal.
Management was concerned with several different areas, since they were able to see each of the invoices being provided to the Accounts Payable department each month. Not being able to use a procure to pay (P2P) portal created issues throughout the organization at all levels.
- One Vendor but multiple invoices were sent out to AP on a monthly basis
- No way to validate that the supplies were received
- No way to easily validate contract costs
- No way to rein in costs as users could order any supply listed on the vendors portal
BNDL, a Procure to Pay (P2P) site utilizes Staples as the premier office supply vendor its E-Procurement portal with rates that are typically only seen by the very largest of clients. This nationwide retailer was eligible to take advantage of contract pricing. This amazing economies of scale allowed for a lower rate for the office supplies plus the ability to guide the end user to purchase approved items at a lower cost.
What did we accomplish?
The cost savings of 30% or $1M annual was a huge accomplishment but an additional soft dollar savings was realized due to time saved from employees processing the invoices.
- One invoice per week with all verified purchases
- Audited invoice against contract rates
- A less confusing guided purchases experience
- Controlled purchases for approved items
This client experienced a 30% reduction in their office supply spend for a total $1M annual savings. The soft dollar expenses were reduced from the reduction in invoices each month and the monthly management of the process.